The stately, century-old building housing the state employees’ union, just two blocks from Plaza de Mayo in Buenos Aires, presents a facade of elegant red-brown granite and polished brass. This outward grandeur, however, belies the wear and tear within, where posters proclaiming ”Luchá como una estatal” – fight like a state employee – are taped to the stairwell walls. This sentiment encapsulates the prevailing mood of anxiety and defiance among Argentina’s public sector workers, who are facing unprecedented cutbacks under the new presidency of Javier Milei. Adolfo Gonzalez Dardik, union leader for the state-employed social workers at SENNAF, embodies this struggle. He describes the arbitrary nature of the layoffs, likening them to a ”chainsaw massacre” that has decimated entire departments and left crucial social services vulnerable.
Milei’s election campaign, symbolized by a chainsaw, promised a drastic reduction of the state apparatus, which he accused the Peronist party of bloating to secure votes. Since taking office a year ago, Milei has merged several ministries, including the family, education, labor, social, and women’s departments, into a single entity called the Ministry of Human Capital. Within SENNAF alone, over 400 employees have been dismissed from the Buenos Aires headquarters, leaving the remaining staff struggling to cope with the increased workload and dwindling resources. The impact of these cuts is being felt across the country, with the closure of pre-schools in vulnerable areas and a surge in poverty, which has risen from impacting 42% to 53% of the population. Dardik expresses concerns about the future, with further cuts anticipated, and the potential shift of social welfare responsibilities from the state to the church, marking a regression to 19th-century practices.
The ”chainsaw effect,” as Milei’s approach to budget cuts has become known, extends beyond social services to encompass healthcare and research. The health minister is considering privatizing public healthcare, potentially leaving a significant portion of the population without access to essential medical services. Furthermore, access to free medication and abortion pills has been reduced. Milei has defended these drastic measures, boasting about achieving the ”largest cutbacks in human history” while maintaining popular support, which currently stands at 52%. His actions have garnered international attention, particularly from figures like Donald Trump and Elon Musk, who share his vision of a leaner state and a stronger private sector. Musk, slated to lead Trump’s Department for the Efficiency of the American State Apparatus, is reportedly in contact with Argentina’s Minister for Deregulation and State Transformation, Federico Sturzenegger, to replicate the ”chainsaw effect” in the United States.
However, not everyone is enthusiastic about Milei’s policies. Francisco Longa, a sociologist at Argentina’s premier research institute, Conicet, has witnessed a 30% salary reduction for researchers. He criticizes Milei for fostering animosity towards state employees, depicting them as parasites, and creating a hostile environment where researchers have even been physically attacked. Longa’s wife, Lucia Ostrower, a gender studies expert, was dismissed from her position at the Ministry of Education shortly after Milei’s inauguration, highlighting the personal toll of these policies on families. The couple, now facing financial hardship, represents the broader struggle of the Argentinian middle class grappling with decreased living standards. Their story encapsulates the human cost of Milei’s radical economic reforms.
Despite the widespread impact of the cutbacks, some observers, like political scientist Eugenia Mitchelstein, believe Milei has shown a degree of pragmatism. While he has abolished several ministries, including the Ministry of Culture, he has stopped short of privatizing the state bank and television station, as initially promised. Mitchelstein also points to the positive impact of his policies on inflation, which has dropped from 25% to 2.7% in a year. She speculates that Milei’s burgeoning relationship with Trump is strategically aimed at securing loans from the International Monetary Fund, crucial for revitalizing the Argentinian economy after the extensive cuts. This suggests a more nuanced approach than his campaign rhetoric might have indicated.
The overarching narrative emerging from Argentina under Milei’s leadership is one of stark contrasts. While the government boasts about reduced inflation and a leaner state apparatus, the human cost of these achievements is becoming increasingly apparent. Families are struggling with reduced incomes and job losses, vital social services are being curtailed, and researchers are facing unprecedented financial constraints. The ”chainsaw effect” may have trimmed the state, but it has also left deep wounds in Argentinian society, raising questions about the long-term consequences of such radical economic restructuring. The fight of the state employees, symbolized by the posters in their union building, is not just for their jobs but for the future of Argentina’s social fabric.