The government is putting a magnifying glass on the profitability of companies in the background of the real drop in wages.

The national government has decided to put up a magnifying glass cost effectiveness of Georgia large enterprises which operate in the country because it has found “excessive profitability” in some cases, in the context of workers’ wages losing much of their purchasing power due to inflation which by this moment in September has already exceeded 80% per year.

“We are at a time when there is excessive profitability in companies. And this should be fixed somehow, so that the burden of distribution does not always fall on families and the most vulnerable,” said the spokesperson of the president. Gabriela CerutiAt the usual Thursday press conference.

Thus, the official paraphrased the Secretary of Economic Programming, Gabriel Rubinstein, a liberal economist who has been sending Sergio Massa to the ministry since August and is in charge of the technical management of economic policy. A historical critic of Kirchnerism, who in this case openly agreed with Cristina Fernandez de Kirchner.

“It is easy to say that there is a serious salary arrears, because it is 20% or 30% less than the last time, as is the foreign exchange arrears, because there is a 90% difference. And it’s easy to say there’s a tariff barrier when the tariffs are 20% or 30% of the cost of production,” Rubinstein told lawmakers on Wednesday.

And immediately he sent a direct message to the big companies in this context of the discussion about income distribution. “Now there’s something that’s been promoted at the macro level, which is what we call the residual, which is the company’s gross margin, which has generally remained high.”

The Deputy Minister of Economy added that “we have to find a way to be efficient and for the gross margin of companies to return to what it was four or five years ago, because it has become obsolete, it has become a very messy issue.” This, according to the government, explains that there are more successful companies, but increasingly poor workers.

While Rubinstein was delivering the 2023 budget presentation to Congress, Indec released data showing a drop in poverty in the first half of 2022 from 37.3% to 36.5% in the second half of 2021. In the same period, poverty increased. from 8.2% to 8.8%. For the vice president, “this shows the impact of the sharp increase in food prices.”

“It is more clear that we are experiencing a supply-side rather than demand-side inflation phenomenon. “Food companies have increased their profit margins very strongly,” he said. Cristina Fernandez de Kirchner After learning about Indec’s data in a message published in the social network Twitter.

He added that the Ministry of Economy “has worked a lot in all areas of its competence, but a more precise and effective intervention policy in the sector is needed and, at the same time, to develop an instrument that will strengthen food security from the point of view of poverty.” “.

This Thursday, Cerruti announced at the Casa Rosada that the president Alberto FernandezThe vice president and the crowd “talk about these things all the time.” In this regard, he said that the Minister of Economy confirmed that he spoke to Cristina about poverty and hardship “before and after” the Vice President published the message on social networks.

President’s spokesman Cerruti said that “there is a The need to generate greater redistribution from revenues; strengthening the purchasing power of wages; And let’s agree that excessive corporate profitability is not part of the society we all want to live in.”

According to the spokesperson of the President, this is a part of the daily dialogue within the government and the policy that the Ministry of Economy is planning.