Argentina Boosts Election Spending, Risking Even More Inflation
- Millions of informal workers will get $268 in next two months
- Banks, big companies will pay new tax to fund cash handouts
Sergio Massa.
Photographer: Anita Pouchard Serra/BloombergThis article is for subscribers only.
Argentina’s Economy Minister and presidential candidate Sergio Massa is ramping up public spending before the Oct. 22 election, promising cash handouts that are likely to fuel inflation already running at 124% a year.
Massa announced Tuesday the government will give informal workers two welfare checks totaling 94,000 pesos, or $268.50, in October and November. The payouts will be financed by an extraordinary tax imposed on banks and other big companies Massa says have benefitted the most from a currency devaluation that followed the Aug. 13 primary vote.