Aldo Abram, Director at Libertad y Progreso, referred to the criticism that the national government has received for the increases in tariffs and the gradualism it is applying to changes in economic policy. He also said that although the inflation target is annihilated, the chosen course is the correct one.
“I am struck by the claim in the public rates issue of some sectors in Cambiemos supporters. Everyone understood that we were paying between 10% and 20% of the real value of the services and at some point, we would have to pay the real value of them. Subsidies didn’t mean that no one paid for them, but that we paid among all of us with taxes. At this point, it seems that the debate is dead or rather cannot continue explaining the same”, commented the economist Aldo Abram, in dialogue with Radio Mitre Mendoza.
The specialist deepened his concepts and said that “although in economic terms, Argentina is going where it has to go, the big problem is the gradualist strategy that it carries forward to impose certain changes”. In that sense, Abram explained that “little by little the country moves away from that possibility of eventual bankruptcy and that the economy is moving slowly because the size of the State is still very large and with very high costs. “
The economist also referred to the tariff issue and said that “We could not continue paying 10% or 20% of the ticket for public services. Large cities must pay for services for what they really cost. Yes, those who, because they have low salaries, can not afford the tickets should be assisted, but I assure you that many of us can pay the fees. Anyway, the criticism is that the adjustment is still made by the private sector, that we have lowered the level of spending and consumption, in order to be able to face the tariffs and that is why the economy does not end up being reactivated”.
About the dollar, Abram said that the important thing is how much a peso is worth. “We must have a Central Bank that defends the value of the Peso. The reality is that we are financing ourselves in dollars abroad, to keep them in a glass box. Between January and February the BCRA bought 8 billion dollars to have them saved when it should have come out to defend the value of the peso because it has fallen hard and that is why we have the feeling that the exchange rate is behind”.
To end, Aldo Abram said “We have to talk about inflation that will have a floor of 20% and depending on what the Central Bank does, we will move in a similar range to the previous year, so I insist that the value of the peso must be defended. Almost all Argentines charge in pesos and the goods we buy are paid in pesos, so it does not make much sense to continue tying everything to the dollar. “
An extract of Aldo Abram Interview on Radio Mitre Mendoza.
