Peron Domestic Essay

677 Words Sep 28th, 2011 3 Pages
When Perón became president on June 4, 1946, his two stated goals were social justice

and economic independence. These two goals avoided Cold War entanglements which would

have occurred by choosing capitalism over socialism or vice versa, but there were no concrete

means to achieve those goals. Perón instructed his economic advisors to develop a five-year

plan aimed at increasing workers' pay, achieving full employment, stimulating industrial growth

of over 40% while diversifying the sector (then dominated by agriculture), and greatly improving

transportation, communication, energy and social infrastructure (in the private, as well as public,


During the first half of the 20th century, a widening gap had
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The profits generated by IAPI

were used to fund welfare projects, while internal demand was encouraged by large wage

increases given to workers. Access to health care was also made a universal right, while social

security was extended to virtually all members of the Argentinean working class.

Perón's bid for economic independence was complicated by a number of inherited

external factors. Great Britain owed Argentina from agricultural exports to that nation during the

war. This debt was mostly in the form of Argentine Central Bank reserves which, per the Roca-

Runciman Treaty, were deposited in the Bank of England. The money was useless to the

Argentine government; however, because the treaty allowed Bank of England to hold the funds

in trust, something British planners could not compromise on as a result of that country's debts

accrued under the Lend-Lease Act. But after a year, British Prime Minister Attlee suspended the

provision and, due to political disputes between Perón and the U.S. government, Argentine

foreign exchange earnings via its exports to the U.S. fell, turning a $100 million surplus with the

U.S. into a $300 million deficit. The combined pressure practically devoured Argentina's liquid

reserves and a temporary restriction on the outflow of dollars to U.S. banks was issued.

Following a lumbering recovery during 1933 to 1945, from 1946 to 1948, Argentina did

experience direct benefit from Perón's five-year

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