August 4, 2011

Argentina President Increases Government Employee Pensions By 16.8%, 2nd Time This Year Right Before Elections!!! BUYING VOTES! :/

The Wall Street Journal
written by Ken Parks
Wednesday August 3, 2011

BUENOS AIRES–Argentina's President Cristina Kirchner on Wednesday announced an increase to state pensions less than two weeks before presidential primary elections that will test her popularity.

The increase, which will cost an additional 20 billion pesos ($4.82 billion) a year and benefit more than 6.8 million retirees, is welcome news for pensioners given an annual inflation rate that most private-sector economists say is running well above the government's estimates.

The measure is expected to boost support for Mrs. Kirchner ahead of the open primary elections on Aug. 14 to select candidates for the October presidential vote.

Mrs. Kirchner remains the clear favorite in the divided field for the presidential election, but after her handpicked candidate for the Buenos Aires mayoral election took a beating a the polls Sunday there is a growing sense that Mrs. Kirchner's re-election bid won't quite be the cakewalk some of her followers had anticipated.

Surging tax revenue from a booming economy has given the Kirchner administration the wherewithal to boost spending on social programs in an election year. The latest raise, coupled with an earlier hike in March, effectively means a 37% increase in the minimum pension during 2011, Mrs. Kirchner said in a televised address. Most private-sector economists say inflation is running above 20%, well above the 9.7% reported by the government.

Congressman Ricardo Alfonsín of Argentina's biggest opposition party, the Union Cívica Radical, has emerged as one of the top challengers for the presidency, though he trails Mrs. Kirchner in the polls by a wide margin.

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