Correct. Many are surprised that welfare payments have actually increased with Milei. That is a big reason why some have been more patient than you would think. Their payments went up. The girl that cleans my house has 3 kids and she told me she gets about $700 USD per month in welfare payments. It's the reason why you see so many poor with kids. I was surprised it was so much because that is more than some people make here.
$700 dollars a month for welfare payments? That seems like a lot. But I guess 3 kids would cost a lot today. I actually was listening to the radio today and someone from the UCA was saying that the inflation numbers are smoke and mirrors. I looked it up and here is what he said.
The Pushback: Agustín Salvia & The UCA
Agustín Salvia, who heads the UCA's Social Debt Observatory (a highly respected independent body), immediately challenged the government's victory lap. His argument boils down to a severe discrepancy between spreadsheet data and street-level reality. He argues the 28.2% figure is a statistical illusion caused by two main methodological flaws:
1. The Outdated 2004 Basic Basket (Canasta Básica) INDEC calculates the poverty line based on a household consumption basket designed in 2004. Back then, public utility tariffs (electricity, gas, water, transport) were heavily subsidized and made up a tiny fraction of a family's budget. Today, following the aggressive removal of subsidies, those utility costs have skyrocketed. Because the 2004 basket is heavily weighted toward food (which has seen slowing inflation recently) and drastically under-weighs services, the official poverty threshold is artificially low. Families might technically earn enough to clear the official INDEC line, but they are drowning in utility bills.
2. Changes in Measuring Informal Income Salvia also pointed out that INDEC has recently changed how it captures "informal" or under-the-table income in its household surveys. By more aggressively estimating this black-market income, total household earnings look higher on paper than they did in previous years. This mathematically pushes more people above the poverty line without their actual, day-to-day purchasing power improving.
The Broader Context
This statistical clash perfectly illustrates the tension between macroeconomic charts and everyday survival. It's the exact dynamic of a neighborhood baker struggling to keep the ovens on and pay for electricity, while the government touts an economic miracle on television.
Furthermore, this controversy is fueled by recent institutional drama: Marco Lavagna, the head of INDEC, resigned earlier this year after the government decided to backtrack on updating the measurement methodology, choosing instead to stick with the favorable 2004 basket.
With utility costs completely reshaping household budgets and squeezing the middle class, how are you seeing this shifting reality impact the residential rental market and property valuations on the ground in Buenos Aires?
