Staff Reports
The Economist magazine has had a serious case of political whiplash over the past year concerning Javier Milei, the newly elected president of Argentina. Just twelve months ago, it was warning the world about the dangers Milei posed to democracy in the country. Fast forward to today; it seems that this self-proclaimed advocate of “Sensible Centrism” has had a change of heart, now suggesting that Milei’s reforms might actually hold some lessons for global economics. Apparently, there is nothing like a bit of economic success to turn a critic into a fan.
Milei has made impressive strides in a mere year, significantly reducing Argentina’s inflation rate, which was spiraling out of control at one percent per day upon his taking office. The rental market, once a nightmare for locals, has seen a 170 percent increase in available apartments, with rents plummeting by 40 percent. In a remarkable feat, he even managed to achieve the first default-free budget surplus in 123 years. The Argentine stock exchange is on the rise, and good old-fashioned business confidence is returning to the country. One can only imagine that the folks at The Economist are kicking themselves for their initial alarmism.
🚨🇦🇷 MILEI: “MY CONTEMPT FOR THE STATE IS INFINITE”—A TRUE REBEL AGAINST BIG GOVERNMENT!
From slashing government spending and deregulating industries to pushing for dollarization, Milei’s bold moves are exactly what Argentina—and the world—needs.
He calls the state a "bloated… pic.twitter.com/5YNJhokNgL
— Mario Nawfal (@MarioNawfal) November 28, 2024
Despite these advancements, the road hasn’t been entirely smooth. The country has faced a devastating increase in poverty, especially among the elderly, as their state pensions have lost value. But history shows that significant economic reforms often come with short-term hardship. Just think back to the successful—and often painful—reforms enacted by Margaret Thatcher or the post-Communist transformations in Central Europe. Not to mention that the voters are still rallying behind their free-market president, who is a breath of fresh air compared to the decades of economic decline and mismanagement since 1916.
Argentines are acutely aware of their economic plight, as they remain among the few nations in the world that have actually become poorer over the past generation. Comparatively, the U.S. has seen a staggering rise in wealth, with Americans managing to improve their financial standing by 204 percent. Meanwhile, Argentinians, despite their best efforts, are grappling with the fact that they are still 13 percent poorer than they were back in 1980. It’s a sobering statistic that underscores the need for Milei’s radical reforms.
Milei is tackling Argentina’s chronic decline with classical liberal principles, reminiscent of the glory days before state interference ruled the roost. He has trimmed the bloated state payroll, eliminated several government ministries, slashed tariffs, and turned off the uncertain expansion of money by the central bank. The president has even opened up the currency market, allowing multiple currencies as legal tender—an audacious move that libertarians can’t help but applaud. While he has put the kibosh on his plan to adopt the U.S. dollar, something that could have solidified his reforms against any return of Peronist policies, Milei is still doing a commendable job of steering away from decades of failure.
In the midst of all this, The Economist has had the audacity to try and differentiate Milei from other populist leaders they previously lumped him in with. Apparently, they have realized that he doesn’t quite fit the mold of the so-called far-right leaders around the globe. With his love for free trade, immigration, and a disregard for culture wars, Milei breaks the mold of the typical populist narrative.
Interestingly enough, Milei has struck up a camaraderie with Donald Trump, even being one of the first visitors to the former president. While Milei does have his quirks—like being staunchly anti-abortion and pro-NATO—his rough, straightforward style resonates with the anger and desire for change that characterizes the present political atmosphere. In attempting to communicate the value of prudent economic choices, he adopts a rather colorful vernacular that makes an impression in today’s often stale political discourse. The lesson? If Milei’s journey proves anything, it’s that delivering sound economic principles with a little bit of flair and humor can go a long way.
