Inspired by Flávio Bolsonaro, Milei government records closure of 32 thousand companies in less than 3 years

Inspiration for the “treasury” defended by Flávio Bolsonaro’s (PL) campaign for the Presidency of the Republic, the “chainsaw plan” of the president of Argentina, Javier Milei, led to the closure of 32 thousand companies in less than 3 years, the time in which he has been in power.

According to data from the Superintendency of Occupational Risks (SRT), an Argentine government body, released on Saturday (10), the total number of employers in the country increased from 512,357 in November 2023, a month before Milei took office, to 480,067 in July this year.

There have been 18 consecutive months of company closures in Argentina. In the month of July this year alone, the country recorded a drop of 948 employers in the SRT register. In the same month, the number of formal jobs closed was 3,485.

The situation occurs after three years of implementation of the Milei government’s Chainsaw Plan, whose justification was to solve the problems of the Argentine economy, including inflation and bureaucracy.

Among the measures, the reduction of public works was applied; cutting subsidies for energy (gas and electricity) and transport (train and bus fares); currency devaluation and reduction in federal transfers to the provinces.

Almost three years later, in addition to the closure of companies, the country has more than 30% of the population in poverty and a growing rate of informal workers.

Despite this, Flávio Bolsonaro’s campaign and the senator himself have praised Milei’s actions several times.

The economic coordinator of the Bolsonaro campaign, Daniella Marques, stated that the PL senator’s government plan is inspired by the changes made by the Milei government.

“We are going to draw inspiration from what was done by the government of Javier Milei, in Argentina”, said Marques during an Esfera Brasil event, in September. According to her, Milei is a “great example”.

Flávio Bolsonaro’s campaign even started to adopt the term “treasury”, in reference to the spending cut of around R$200 billion that he intends to make.

In this package, the minimum floor for health and education, the policy of increasing the minimum wage and the real adjustment of pensions and the Continuous Payment Benefit (BPC) are some of the policies that will suffer cuts.