Argentina’s Political and Economic Landscape: 1916-1930

Posted on Feb 1, 2025 in History

Labor Policy

  • Change the deal with the unions, seeking dialogue and arbitration.
  • Conflict of Patagonia: The rest of the domestic market produces unemployment, so the FORA (Argentine Regional Workers’ Federation) used this as a weapon for a union campaign. The authorities’ response resulted in the deaths of around 1,500 people. Varela, who led the slaughter, was brought to trial, and Irigoyen did not speak on the subject.

Economic Policy for the Radical Governments

Irigoyen’s national labor policy developed in May, giving state involvement in key economic sectors such as:

  • Oil
    • Increased production and thus helped YPF (Fiscal Oilfields) to compete against imports.
    • Tried to punish the oil monopoly, achieving the opposition of foreigners and their vernacular allies (from the same country).
  • Transport
    • Boats:
      • Tried to create a merchant fleet, but Congress rejected it. They started with some cereal transports.
    • Rail:
      • Decrepit unfulfilled contracts.
      • Controlled rate increases.
      • He was concerned with extending railway branches to areas needing development.
  • Public Land: Regaining the status and control of land sales.
  • National Industry: The increased cost of foreign products because they were scarce. So, a policy of protecting domestic industry was launched and promoted. Beginning with the metal industry and then the livestock and food industry.
  • Textiles and Mechanics: After 1923, foreign products reached the previous pre-war level. For a time, the conservative policy continued but was then abandoned. However, it continued to grow due to foreign investment.

First World War

Irigoyen continued the policy of neutrality that Argentina had adopted with former President Victorino de la Plaza. Not involved in the conflict, Argentina continued to maintain ties of economic dependence on England and acted as a supplier of food.

  • Causes of the war:
    • Rivalry between European states.
    • Arms competition.
    • Imperialist ambitions.
    • Competition for the market.
    • Aspirations for autonomy and subject groups.
    • Nationalist revenge (revenge) of the French and Germans.
  • The main cause of the war was the assassination of Archduke Franz Ferdinand, the heir to the throne.

Imperialism

  • Imperialism: The domain of more powerful countries over other nations.
  • Age of Imperialism: (Last quarter of the 19th century until the First World War). The great powers expanded.
  • Objectives:
    • Appropriation of raw materials.
    • Acquisition of new markets.
    • Equity investment.
    • Power and prestige in the world.

U.S. Entry into the War

  • In 1917, the U.S. intervened by selling weapons and food and also lending to the Allies, which benefited the economy by raising new markets.
  • They broke their neutrality in favor of the Allies with the reason that German submarine warfare began, making it difficult and endangering its merchant vessels.
  • They sent a million and a half soldiers, helping other allies.
  • When the war ended, the U.S. was the most benefited because:
    • It expanded trade.
    • The war was not fought on its territory.
    • Its participation defined the success.

President de Alvear

  • Division of the UCR (Radical Civic Union): Alvear lost control of the party, which was divided into two camps:
    • The Irigoyenistas: Rated by opponents as personalistic.
    • Anti-Personalists: Who admitted the conservative and elitist sector of the UCR.

Irigoyen’s Second Term

He had difficulties such as:

  • UCR senators were a minority.
  • The upper class opposed him.
  • They discredited his actions and accused him of corruption.
  • He failed to pass the laws he wanted and had to deal with the 1929 economic crisis.

The 1929 Crisis

The crisis consists of the stock market crash in New York. Everyone tried to sell at the same time, and the banks failed. The bankruptcy came to Europe and spread throughout the rest of the world. With that came the fall of communism. Irigoyen’s measures were to shut down conversion boxes to avoid unemployment in the country and prevent erosion and speculation.

1929 Global Crisis

On October 29, 1929, known as Black Thursday, the stock market crashed, and within days, the institution lost 30 million dollars in value, leading to a general collapse. Then began a period of economic downturn called the Great Depression that lasted until 1940.

Fall of the Agricultural Export Model

In the 1920s, Argentina was a fully operational agro-exporting country. But the crisis of 1929 affected production.