Populist Argentine government begins painful cuts

[Zorro]

Argentina's cash-strapped government is cutting utility subsidies and trying to borrow for the first time in years as teachers, public health workers and other former allies take to the streets demanding pay raises to match some of the world's highest inflation.

The government has subsidized 80 percent of the cost of water, natural gas and other basic services for a decade as the economy recovered from a devastating collapse and debt default. Since taking office in 2007, President Cristina Fernandez added many more subsidies, seeking to stimulate the economy by transferring wealth to the poor.

"Millions of people have seen their salaries increase," Fernandez said in a national address Thursday night. "They've been able to buy a car, or air conditioning."

She insisted her model of "social inclusion" won't change, but called on Argentines to adapt to a "more rational use of energy."

http://news.yahoo.com/populist-argentine-government-begins-painful-cuts-181442395.html

[enid602]

1. Cristina

As Venezuela becomes Zimbabwe, she's afraid of Argentina becoming Venezuela.