Argentina GDP per capita is HUGE at $13,650 compared to neighboring Brazil at $9000 and is rich in natural resources, coupled with low population as well. So why is the country suffering from rampant poverty at 60% and inflation at over 300%?
I know everyone blames corruption and the rich-poor gap, but that is nothing unique to Argentina. Asian and African countries have it far worse, so that can’t be the reason, nor is Argentina any tax haven that they would have disproportionate corporate flows.
In: Economics
The inflation is due to printing money and high levels of debt. The hyper-capitalist shock-measures by Milei have worsened the poverty situation as he has cut down on government spending. But Argentina has had high poverty of around 30 percent for many decades due to poor governance, corruption and poor if not stagnant economic growth. Also, I would consider which measure of poverty you are using, as it isn’t universally defined
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