HomeEconomic IndicatorHow Argentina's Massa scored a surprising election win with tax cuts and...

How Argentina’s Massa scored a surprising election win with tax cuts and affordable bus fares.

Sergio Massa’s Election Victory: How Tax Cuts and Voter Concerns Led to an Upset

Tax Cuts and Voter Concerns Propel Massa to Election Victory

Argentine Economy Minister Sergio Massa managed to pull off a surprising first-round election victory, despite the country’s severe economic crisis. His success can be attributed to a strategic combination of tax cuts and addressing voter concerns about rising bus fares and medical bills.

The Unexpected Reversal of Pre-Vote Expectations

In a surprising turn of events, Massa secured 37% of the vote, surpassing far-right libertarian Javier Milei, who received 30%. This unexpected outcome has given Massa the momentum heading into the upcoming run-off on November 19.

- Advertisement -

Fueling Voter Fears of a Worsening Economy

Massa’s victory highlights his ability to tap into voter fears regarding Milei’s radical proposals to fix the broken economy. Despite public anger towards the government, Massa successfully emphasized that these proposals could potentially worsen the situation for the millions reliant on state subsidies.

Influencing Voters with Strategic Campaigns

In the week leading up to the election, commuters were presented with two ticket prices for trains and buses: a lower “Massa price” with subsidies and significantly higher prices without subsidies under his opponents. Similar campaigns were reportedly conducted in some hospitals, while the energy secretary warned of potential price hikes for subsidized gas.

Expanding Income Tax Exemptions to Woo Voters

Massa further solidified his support by expanding income tax exemptions to all workers, a move that garnered popularity but came at a significant cost to the state’s already depleted funds. This decision also deviated from the fiscal targets agreed upon with the International Monetary Fund (IMF), one of Argentina’s major creditors.

- Advertisement -

Milei’s Radical Proposals and Voter Backlash

Milei, on the other hand, advocated for the privatization of state entities and endorsed Chile’s public-private model. While this resonated with voters frustrated by years of economic mismanagement, Milei’s often aggressive rhetoric towards critics caused some concern among the electorate.

Protecting the Welfare State

Milei’s proposals raised alarm among many Argentines who rely on the country’s welfare state. Privatization and a reduction in social welfare programs could have severe consequences for the most vulnerable citizens. As a result, Milei’s campaign appearances, where he symbolically wielded a chainsaw to represent his plans to downsize the state, may have backfired.

The Lingering Baggage of Economic Failures

Despite his victory, Massa still carries the burden of the government’s economic failures over the years. While he is considered more centrist and not closely aligned with leftist icon Cristina Fernandez de Kirchner, many voters remain skeptical of the governing party’s ability to address the current economic predicament.

Voters Express Frustration with the Status Quo

Ana Monclus, a 20-year-old student, expressed her disbelief at the electorate’s continued support for the current government. Years of corruption, a plummeting currency, soaring inflation, and the impending recession have left many disillusioned. Monclus questioned why people would vote for the same individuals responsible for these challenges.

It is evident that Massa’s unexpected victory in Argentina’s general election can be attributed to his strategic use of tax cuts and addressing voter concerns. By playing on fears surrounding his opponent’s radical proposals and offering tangible solutions to everyday issues, Massa managed to secure a significant portion of the vote. However, his victory does not absolve him of the challenges that lie ahead as the country grapples with its economic crisis.

Must Read