Milei, on dollarization: “The salary will fly”

With dollarization as one of the main bets of his campaign, Javier Milei – candidate for president for La Libertad Avanza (LLA) – explained in recent statements how salaries would change in the country if he were imposed in October and his proposal applied. Throughout his campaign, the liberal economist bet heavily on his proposal to close the Central Bank, eliminate the Argentine peso and dollarize the economy. So far, uncertainty weighed on the salary that Argentines would receive if Milei manages to apply his drastic proposal. In dialogue with Alejandro Fantino for Neura, the economist explained: “If you have to compute your salary in dollars, you do it for 740.” In that sense, the economist said that “if you earned 740,000 pesos today, you would earn a thousand dollars.” Likewise, Milei acknowledged that “the day you dollarize you have uncomfortable prices,” but then pointed out the value of prices in general with the fixed exchange rate. “The dollar would no longer rise, the value of tradables – importable or exportable goods – would not increase, wholesalers will rise less and then come retailers, who were already rising, but they will do so more than wholesalers,” he said. Who is still in line? Wages, well, are the ones that are going to rise the most because they are all going to be equalized, so to speak,” he added, and then he said that “the salary in dollars is going to fly.” Since the price of food is determined in dollars, your salary in terms of food will fly even higher. Consequently, you will go to a strong reduction of indigence and a strong reduction of poverty, that is, the readjustment of prices will favor the people who have less, “explained Milei.

Original source in Spanish