Feb 27 • 16:26 UTC 🇦🇷 Argentina Clarin (ES)

"We were stealing": two government measures reduced profits for companies after years of record profitability

A confession by a tire industry businessman sparked government scrutiny of various sectors, as President Javier Milei labeled certain entrepreneurs as "criminals" for taking advantage of protective commercial policies.

A recent confession from Roberto Méndez, the CEO of Neumen, has ignited a debate in Argentina regarding corporate profits amid governmental regulations. According to Méndez, businesses enjoyed unprecedented profit margins during years characterized by import barriers, limited access to dollars, and high inflation rates, which allowed them to thrive in a seemingly artificial market. He stated, "We were stealing from consumers and ourselves, as we never made as much money as during those times when we were allowed to operate with impunity."

President Javier Milei has seized on Méndez's words as validation for targeting specific entrepreneurs and sectors, calling them 'criminals’ for their role in capitalizing on a distorted economy at the expense of consumers. The administration's critique reflects broader discontent over sectors that have flourished under government protections that limited competition and created inflated profit margins. As Milei’s administration pushes for reforms, the implications of these discussions are significant for the future of business practices in Argentina.

This situation also raises questions about the ethical dimensions of profit-making in tightly regulated markets. As the debate unfolds, it is clear that Milei's government aims to reshape the economic landscape by addressing what they perceive as exploitation by leading corporations and putting pressure on business leaders to justify soaring profits. The resulting policy changes could impact market dynamics and consumer prices, potentially leading to a significant overhaul in the Argentine economic framework.

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