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Perón’s policies
Social
• Status of women
• Education
• Arts, media and cenzorship
• Propaganda
Economic policies
• producer of raw materials when Europe was
recovering from war.
• accumulated revenues in its foreign accounts
from its exports during WWII.
• plenty resources and strong demand for A.’s
goods  economy was in a positive direction
Economic policies
Economic aims – independent Argentina:
• autarky: repatriation of foreign debt + transfer
of foreign-owned companies to the state
• strong state presence in the economy
• nationalism: own industries: armament and
heavy industry
– aimed at full-employment rates
Economic policies
Policies implemented:
• protectionism: tariffs on imported goods
• state subsidies to new industries
• nationalization: railway, gas, power plants (from the
wartime profits)
• state control of river and air transportation (taken away
from private companies)
• export control of meat, grains: state bought directly from
producers at fix price and sold it on international markets
for much more
• state control of currency exchange
• nationalization of the Central Bank of Argentina: designed
the banking policies all banks had to follow
Economic policies
Source O
Economic policies
1946-48:
• construction industry expanded – thanks to
the govt investments in public works
• exports increased
– more money to buy the essential imports for
industrialization
• working class living standards increased
• in 1948: industry output surpassed
agricultural output
Economic policies
Questionable policies:
• wage increases: w/o considering if all sectors made
enough to pay for them
• price controls – to keep prices low (while increasing
salaries)  many problems
– rise of salaries: production costs increased
– producers not allowed to sell at higher prices:
• stopped producing
• or sold their products on the black market for higher prices (to cover
their increasing costs)
• currency revaluation (making the peso stronger)
– OK, imports are more affordable,
– but what about export revenues??? A. products are now a lot
more expensive for foreigners
Economic policies
Agricultural output fell, because of:
• taxes, control of exports, currency revaluation
 this led to a smaller export rev.  less money
to buy imported capital goods  less industrial
progress
rising levels of prices and inflation
State companies were making losses  had to
be covered from the govt budget (increasing its
expenditures)
Economic policies
1951 – because of the above mentioned problems:
• agricultural export regulations made more flexible  to
promote growth
• policies to attract foreign investments  accepted US
participation in exploiting A. subsoil
– for this he had to give up his ideology of autarky and nationalization
• so the economic problems were really huge!
• opponents: immediate criticizims – about letting US investors
in
– reminded P. that the 1949 constitution prohibited the transfer of energy resources to foreign hands
• biggest mistake:
– they thought that the comparative advantage that A. had in the early days would be enjoyed
infinitely BUT
• Europe recovered very fast from the WWII
• wartime profits were spent on nationalization
• Cold War did not develop into WWIII  A. is not needed that much as a supplier of primary
products
These problems led to social unrest and the rise of the
opposition.
• Source P – pic of workers in a car factory
• Source Q – „New Argentina”  not so new
ideologies of policymakers choosing the „Third
Way” (between capitalism and communism)
Economic policies
The rise of opposition and the fall of
Perón
since 1946: workers living conditions rose, but
also, the economy wasn’t doing great…
The rise of opposition and the fall of
Perón
after 1951: the economic problems led to the
opposition’s rise
• the living standard of the middle class was not really improved
– the freezing of the rents made their extra income freeze as
well
• landowning class: lot of their export revenues taken away
• industrialists experienced tight control of imports
• economic problems slowly began to be felt on the working class
too  trade unions organized strikes
• financial difficulties – negotiations to attract foreign investment
 that goes completely against original Peronism!!!
• „The Peronist dream of a united nation showed signs of rifts.” p.
44
The rise of opposition and the fall of
Perón
What was the govts response to this
situation???
• increased persecution of opponents
• limited the freedom of speech
• reinforced the cult of the Leaders Eva and
Perón
• P. wanted to make Eva Vice-President
– bad reaction from traditionalist armed
forces, middle, upper classes
The rise of opposition and the fall of
Perón
• Eva stepped down (perhaps because of her cancer OR the
pressure on Perón).
• Sep 1951: attempted coup by General Benjamin Menéndez
– failed.
• as a response P. declared „internal state of war”  could
suspend constitutional freedoms and increased his power
• 1952 summer: P. re-elected for the 2nd time
• 26 July 1952: Eva Perón dies of cancer – her supporters
devastated  her cult grew to near-religios highs 
irritating the Catolic Church and the more traditional armed
forces  Catholic groups started to organize themselves
politically  P. felt threatened  imprisoned Catholic
priests, closed Catholic newspapers and banned religious
processions.
The rise of opposition and the fall of
Perón
Source A - Perón and the Church: first for each
other then competitors, later enemies.
The rise of opposition and the fall of
Perón
• April 1953: CGT demonstration for P. – bomb – 5 dead
• in response Jockey Club attacked by extreme Peronists
• June 1955: Corpus Christi Day– Catholics accused of
burning an Argentina flag – they said it was the police
to provoke people against them
• navy and armed forces bombarded the Presidential
Palace  hundreds of civils dead, P. alive.
• Peronists set Churches and anti-Peronist buildings on
fire
• Perón offers his resignation and fires some of the govts
key people – not enough for the opposition.
The rise of opposition and the fall of
Perón
Perón did nor react:
• as a military man, he didn’t want to go against
the military
• did not want to antagonize the enemy and
lose his supporters from the army that was
still loyal to him
• did not want more chaos, especially not a civil
war between: Peronists and non-Peronists
31 Aug 1955: CGT domnstration for P.
The rise of opposition and the fall of
Perón
Source B: P’s speech: „To violence we will
respond with a greater violence”
Liberating Revolution: 16 Sep 1955 Perón’s govt
fell  taken over by a military junta  P.
escaped to Paraguay and stayed there till 1973.
Source C – pic of the Liberating Revolution on
the Plaza de Mayo
The rise of opposition and the fall of
Perón
HW: Student Study Section pp.48-49

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Perón’s economic policies

  • 2. Social • Status of women • Education • Arts, media and cenzorship • Propaganda
  • 3. Economic policies • producer of raw materials when Europe was recovering from war. • accumulated revenues in its foreign accounts from its exports during WWII. • plenty resources and strong demand for A.’s goods  economy was in a positive direction
  • 4. Economic policies Economic aims – independent Argentina: • autarky: repatriation of foreign debt + transfer of foreign-owned companies to the state • strong state presence in the economy • nationalism: own industries: armament and heavy industry – aimed at full-employment rates
  • 5. Economic policies Policies implemented: • protectionism: tariffs on imported goods • state subsidies to new industries • nationalization: railway, gas, power plants (from the wartime profits) • state control of river and air transportation (taken away from private companies) • export control of meat, grains: state bought directly from producers at fix price and sold it on international markets for much more • state control of currency exchange • nationalization of the Central Bank of Argentina: designed the banking policies all banks had to follow
  • 7. Economic policies 1946-48: • construction industry expanded – thanks to the govt investments in public works • exports increased – more money to buy the essential imports for industrialization • working class living standards increased • in 1948: industry output surpassed agricultural output
  • 8. Economic policies Questionable policies: • wage increases: w/o considering if all sectors made enough to pay for them • price controls – to keep prices low (while increasing salaries)  many problems – rise of salaries: production costs increased – producers not allowed to sell at higher prices: • stopped producing • or sold their products on the black market for higher prices (to cover their increasing costs) • currency revaluation (making the peso stronger) – OK, imports are more affordable, – but what about export revenues??? A. products are now a lot more expensive for foreigners
  • 9. Economic policies Agricultural output fell, because of: • taxes, control of exports, currency revaluation  this led to a smaller export rev.  less money to buy imported capital goods  less industrial progress rising levels of prices and inflation State companies were making losses  had to be covered from the govt budget (increasing its expenditures)
  • 10. Economic policies 1951 – because of the above mentioned problems: • agricultural export regulations made more flexible  to promote growth • policies to attract foreign investments  accepted US participation in exploiting A. subsoil – for this he had to give up his ideology of autarky and nationalization • so the economic problems were really huge! • opponents: immediate criticizims – about letting US investors in – reminded P. that the 1949 constitution prohibited the transfer of energy resources to foreign hands • biggest mistake: – they thought that the comparative advantage that A. had in the early days would be enjoyed infinitely BUT • Europe recovered very fast from the WWII • wartime profits were spent on nationalization • Cold War did not develop into WWIII  A. is not needed that much as a supplier of primary products These problems led to social unrest and the rise of the opposition.
  • 11. • Source P – pic of workers in a car factory • Source Q – „New Argentina”  not so new ideologies of policymakers choosing the „Third Way” (between capitalism and communism) Economic policies
  • 12. The rise of opposition and the fall of Perón since 1946: workers living conditions rose, but also, the economy wasn’t doing great…
  • 13. The rise of opposition and the fall of Perón after 1951: the economic problems led to the opposition’s rise • the living standard of the middle class was not really improved – the freezing of the rents made their extra income freeze as well • landowning class: lot of their export revenues taken away • industrialists experienced tight control of imports • economic problems slowly began to be felt on the working class too  trade unions organized strikes • financial difficulties – negotiations to attract foreign investment  that goes completely against original Peronism!!! • „The Peronist dream of a united nation showed signs of rifts.” p. 44
  • 14. The rise of opposition and the fall of Perón What was the govts response to this situation??? • increased persecution of opponents • limited the freedom of speech • reinforced the cult of the Leaders Eva and Perón • P. wanted to make Eva Vice-President – bad reaction from traditionalist armed forces, middle, upper classes
  • 15. The rise of opposition and the fall of Perón • Eva stepped down (perhaps because of her cancer OR the pressure on Perón). • Sep 1951: attempted coup by General Benjamin Menéndez – failed. • as a response P. declared „internal state of war”  could suspend constitutional freedoms and increased his power • 1952 summer: P. re-elected for the 2nd time • 26 July 1952: Eva Perón dies of cancer – her supporters devastated  her cult grew to near-religios highs  irritating the Catolic Church and the more traditional armed forces  Catholic groups started to organize themselves politically  P. felt threatened  imprisoned Catholic priests, closed Catholic newspapers and banned religious processions.
  • 16. The rise of opposition and the fall of Perón Source A - Perón and the Church: first for each other then competitors, later enemies.
  • 17. The rise of opposition and the fall of Perón • April 1953: CGT demonstration for P. – bomb – 5 dead • in response Jockey Club attacked by extreme Peronists • June 1955: Corpus Christi Day– Catholics accused of burning an Argentina flag – they said it was the police to provoke people against them • navy and armed forces bombarded the Presidential Palace  hundreds of civils dead, P. alive. • Peronists set Churches and anti-Peronist buildings on fire • Perón offers his resignation and fires some of the govts key people – not enough for the opposition.
  • 18. The rise of opposition and the fall of Perón Perón did nor react: • as a military man, he didn’t want to go against the military • did not want to antagonize the enemy and lose his supporters from the army that was still loyal to him • did not want more chaos, especially not a civil war between: Peronists and non-Peronists 31 Aug 1955: CGT domnstration for P.
  • 19. The rise of opposition and the fall of Perón Source B: P’s speech: „To violence we will respond with a greater violence” Liberating Revolution: 16 Sep 1955 Perón’s govt fell  taken over by a military junta  P. escaped to Paraguay and stayed there till 1973. Source C – pic of the Liberating Revolution on the Plaza de Mayo
  • 20. The rise of opposition and the fall of Perón HW: Student Study Section pp.48-49