The hand of the State in the midst of the crisis

The 74 percent of households obtained some type of state aid, national or provincial during the pandemic. The aid was destined to avoid one of the heaviest inheritances left by the crisis: the indebtedness of medium and low-income households. The Emergency Family Income (IFE), the ATP and the credits for monotributistas at a rate of 0 percent, for example, were used to address daily expenses, mainly food, and also in the payment of
essential services like gas in carafes.

The data are the result of the study on the dynamics of family indebtedness carried out by the Institute of High Social Studies (Idaes) from University of San Martín under the coordination of the sociologist Ariel Wilkis. The report places special emphasis on the strong presence of state aid in households, and downgrades its importance depending on the socio-labor condition and the destination of the same.

The highest proportion of these grants correspond to IFE in 47 percent of the cases, loans to monotributistas at a rate of 0 percent in 23 percent of the cases and the ATP in 15 percent of the households. Other state assistance prior to the pandemic and which continued to be granted during the pandemic also appeared, such as the Universal Child Allowance and the Alimentar Card.

State, the least benefited

“The group of state workers was the one that received the least state aid, because they did not request it or because, when they did, the requests were rejected, as in the case of households where a member had requested it, but the requirements were not met”, ensures the report.

The IFE was an aid that addressed households of all socio-occupational profiles, but with greater participation in those of the group of informal workers. In this group, in addition, the IFE is combined, in some cases, with other aid such as AUH, non-contributory pensions for the mother of 7 children, disability pensions and food modules or pockets. On the other hand, credits at a 0 percent rate were mostly requested in the group of merchants and professionals, closely followed by monotributistas. The ATP is an aid where households of the group of private sector workers predominate.

Debts to survive

Regarding the use of these aids, the IFE was mostly occupied in daily and current expenses, mainly food, and also in the payment of essential services. It was also used to a lesser extent for the payment of rent, credit card maturities and different types of debts. Similarly, it was also used to counteract the lack of household income through the purchase of machinery or establishing enterprises that ensure some type of income such as the purchase of clothes for resale.

For their part, credits at 0 percent rate have a more diversified use, ranging from food purchases and financing of current expenses, The payment of credit card debt even other less urgent or even sumptuous payments. These credits, as well as subsidies and provincial credits, also offer the possibility of financing businesses and businesses that are temporarily unemployed or reconverting commercial activities.

In the case of ATP, state aid supplanted salary income and fulfilled that function: finance consumption and daily expenses, pay rent, services and taxes, as well as debts.

Finally, the report identifies “tensions with state regulations“such as moratoriums that” disorganize the planning of domestic economies, generating uncertainty for the future. ” It also ensures that they are not always effective given the high informality, for example in the case of rentals. A separate mention is the link between the middle sectors with respect to the IFE, which reject the new situation of “beneficiaries”.

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