Staff Reports
The new Argentine President, Javier Milei, made a splash on Wednesday night with a game-changing executive order that promises to overhaul 350 federal economic policies. Milei didn’t hold back as he took a swing at nearly every aspect of the Argentine economy, including imports, price controls, health care, sports federations, landlord and tenant policies, and the yerba mate industry. And as Milei bravely fights against the socialist policies that have plagued Argentina for years, the republic faces one of the most catastrophic economic crises in its history.
Since taking office on December 10, Milei has been steadfast in his efforts to undo the damage caused by decades of government mismanagement, excessive spending, and corruption. This has led to a drastic increase in poverty, unemployment, and inflation. In fact, the inflation rate reached a staggering 160 percent just days after Milei became president.
Argentina: Javier Milei signs executive order weakening or ending 350 socialist policies. pic.twitter.com/yOpAVysEJb
— Becca Buono (@becca_buono) December 21, 2023
Milei, a passionate libertarian economist, emerged victorious in the November 19 presidential election, defeating the former socialist Economy Minister Sergio Massa. Milei’s victory came with a promise to implement extensive economic deregulation, downsize the government, and establish stronger alliances with America and Israel, breaking away from the previous administration’s close ties to China and Russia.
In a historic address, President Milei proudly announced the launch of a shock stabilization plan, which involves crucial fiscal adjustments, a recalibration of the exchange rate to reflect the market value, and the overhaul of the central bank’s policies. The goal? To mitigate the disastrous effects of Argentina’s deep-rooted economic crisis, a result of failed governmental policies that have inflicted suffering on its people for far too long.
Milei emphasized the need to break away from the failed leftist doctrines of socialism, fascism, and communism, which have only served to enslave individuals to the state’s power. He boldly declared that politicians are not divine; in fact, they are the cause of many of the nation’s problems. His bold reform, encapsulated in the 83-page Necessity and Urgency Decree (DNU), officially declares an economic “emergency” until December 31, 2025, paving the way for sweeping changes to revitalize the country.
Milei’s executive order swiftly dismantled multiple state regulations that had stifled economic growth, including laws controlling prices of various goods and services. Notably, the Rental Law, responsible for inflating rents by 300 percent, is now defunct, offering relief to landlords and tenants. The order also scrapped the cumbersome price control laws for artisanal products and regulations governing the purchase of rural land, thereby allowing for a freer and more vibrant market.
Furthermore, Milei’s decree eliminated customs regulations on imports and exports, dismantling a national registry of importers and exporters, whose existence was an anomaly in the global market. It also marked significant deregulation in the telecommunications sector, heralding a new era of freedom and innovation. The reforms even extended to Argentina’s major industries, like winemaking and yerba mate production, where state constraints were lifted to foster growth and innovation.
In a bid to modernize the health care system, President Milei’s executive order opened up the drug industry, making generic drugs more accessible to the populace and streamlining prescriptions electronically to cut costs. These bold moves come as the second wave of reforms under Milei’s tenure, showing his unwavering commitment to bringing prosperity back to Argentina.
President Milei’s decisive actions are already yielding results, with Economy Minister Luis Caputo announcing a significant devaluation of the Argentine peso, correcting the prior administration’s artificial manipulation. This courageous move, coupled with an increase in the child tax credit to mitigate the effects of inflation, demonstrates Milei’s dedication to the well-being of the Argentine people.
As President Milei leads Argentina onto a new path of economic revival, the nation stands on the precipice of unprecedented change. With a resolute leader at the helm, hope is on the horizon for Argentina’s long-suffering citizens.
