“They will probably give me the Nobel Prize in Economics”

“They will probably give me the Nobel Prize in Economics”
“They will probably give me the Nobel Prize in Economics”

The president of Argentina, Javier Milei, fantasized this Monday during his visit to the Czech Republic with the possibility of receiving the Nobel Prize in Economics together with his advisor Demian Reidel for making “the conflict between the pin factory and the invisible hand.”

Milei received this Monday in Prague an award given to him by a group of former leaders of the Liberal Institute of the Czech Republic, but the institution dissociated itself from the event and said that it was an initiative of people who have not been linked to that institution for years and who lack authorization to deliver such an award.

In the last week, the Argentine president has been recognized with awards given by think tanks close to libertarian philosophy, of which Milei is a faithful follower.

“With my chief advisor, Dr. Demian Reidel, we are rewriting much of economic theory to be able to derive Pareto optimality, both static and intertemporal, having non-convex production functions. If it ends up going well, they will probably give me the Nobel Prize in Economics along with Demian,” said the president in his speech today in Prague, according to information from the agency. EFE.

The Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel, usually referred to as the Nobel Prize in Economics, is an annual recognition awarded by the Royal Swedish Academy of Sciences to outstanding contributors to the disciplines of Economics.

Milei’s words during the event were full of references to his favorite economists and members of the Austrian school, the current of economic thought to which the Argentine president adheres.

The Argentine president harshly criticized socialism and illiberal economists, praised names like Adam Smith and recalled the liberal origin of the names of his dogs – which he referred to, once again, as his “little children.” four-legged” -, Conan, Milton, Murray, Robert and Lucas.

In addition to his event today at the Zofín Palace, the president also met in Prague with the Prime Minister of Czechia, Petr Fiala, and with the country’s president, Petr Pavel.

The president is scheduled to return to Argentina this Tuesday, after visiting Spain in recent days, where he received the international medal of the Community of Madrid from its president, Isabel Díaz Ayuso, and Germany, where he held a working meeting with the chancellor, the social democrat Olaf Scholz.

Argentina’s Gross Domestic Product falls and unemployment rises

Argentina’s Gross Domestic Product (GDP) registered a strong contraction of 5.1% year-on-year in the first quarter of 2024 and unemployment reached 7.7% of the population, according to official figures released this Monday and recorded by D.W..

The Institute of Statistics (INDEC) also indicated that GDP fell 2.6% in the first full quarter of Javier Milei’s Government compared to the last quarter of 2023.

The construction sector, with a drop of 19.7%, was the most affected in the year-on-year comparison, followed by the manufacturing industry with a contraction of 13.7% and financial intermediation activities with a decrease of 13%. The only increase recorded by INDEC was in exports, which marked a 26.1% year-on-year increase and 11.1% compared to the previous quarter.

The data is in line with the projections of the International Monetary Fund (IMF) on Argentina. The organization anticipated that in 2024 there will be a 3.5% drop in GDP and an average annual inflation of 233% (the official data is close to 280% in 12 months).

“We know that, in the short term, the situation will worsen, but then we will see the fruits of our efforts,” Milei promised in his inauguration speech. Since he took office in December 2023, the economist applied an adjustment to state spending, which sharply cut public works, reduced and eliminated state agencies, suspended financing for the provinces, laid off thousands of public employees, deregulated prices and eliminated subsidies. in a country with half of the population in poverty.

In this context, the precipitous drop in consumption – due to the loss of purchasing power of the Argentine population – collaborated with the collapse of economic activity and the slowdown in price increases in recent months.

Inflation in Latin America’s third largest economy moderated again in May (to 4.2% monthly), but remains high considering that it reached 71.9% in the first five months of 2024 and almost 280% year-on-year, according to the latest official data available.

The INDEC also released this Monday the unemployment figure, which reached 7.7% of the economically active population in the first quarter of 2024, an increase of 0.8 percentage points compared to the same period of the previous year.

The total number of employed people represents 44.3% of the economically active population (14.2 million people), that is, 13.1 million people have work, while the unemployment rate of 7.7% is equivalent to 1.1 million people without jobs, but actively searching.

When looking at specific sectors for the population aged 14 and over, considered of working age, the unemployment rate was 8.4% for women and 7% for men. Expert teams estimate that 40% of the people who work in Argentina are informal.

 
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