Buenos Aires, September 2023. Hundreds of people crowded around to wave flags and film on their phones. The man with unruly hair and sideburns in the center of them, clad in a black leather jacket, hoisted a roaring chainsaw above his head. This was an election rally taking place in the San Martín area of the Argentine capital a month before the presidential election - and the metaphor was explicit. The candidate Javier Milei believes the state is far too bloated, with annual debts that were bigger than Argentina's entire annual economic output. Rather than 'trimming the fat', as some politicians delicately put it, he said he would take a chainsaw to ministries, subsidies, and the ruling political class he derided as 'la casta' - the caste.
Milei had a penchant for dramatic stunts; previously, he smashed a piñata of the Central Bank on live TV and dressed as a 'libertarian superhero'. Under his leadership, inflation in Argentina reached a staggering 211% in 2023. However, he managed a remarkable shift, recording the country's first fiscal surplus in 14 years and bringing inflation down to approximately 36%.
Milei’s measures have drawn international attention. UK Conservative leaders hailed his reforms as templates for future governance, while Donald Trump called him 'my favorite president'. They met in Washington to discuss their implementation.
Yet, the economic achievements come at a steep price, with protests erupting against Milei's reforms. Critics argue that cuts aimed at the elite have disproportionately affected the working class, leading to less funding for hospitals and pensions.
The contrast between national sentiment and financial stability creates a paradox. While Milei may have achieved macroeconomic goals, his declining political support has made markets anxious. With midterms approaching, the upcoming election on October 26 may determine his future and further economic outcomes for Argentina.
In Misiones province, local economies suffer, with farmers like Ygor Sobol shut down operations as deregulated markets drive prices down. The textile industry describes daily job losses as tariffs were cut unfairly favoring imports over local production, leading to a drastic drop in domestic manufacturing.
Despite the chaos, Milei remains optimistic that the short-term pain will yield long-term gains. He admires Margaret Thatcher, whose economic approach he emulates—though she remains a controversial figure in Argentina's history. This raises significant questions: Can Milei sustain his economic framework while navigating the social discontent it has sown? As international investors watch with hope, many ordinary Argentines are left feeling the brunt of the reforms that were promised to deliver a better future.
Milei had a penchant for dramatic stunts; previously, he smashed a piñata of the Central Bank on live TV and dressed as a 'libertarian superhero'. Under his leadership, inflation in Argentina reached a staggering 211% in 2023. However, he managed a remarkable shift, recording the country's first fiscal surplus in 14 years and bringing inflation down to approximately 36%.
Milei’s measures have drawn international attention. UK Conservative leaders hailed his reforms as templates for future governance, while Donald Trump called him 'my favorite president'. They met in Washington to discuss their implementation.
Yet, the economic achievements come at a steep price, with protests erupting against Milei's reforms. Critics argue that cuts aimed at the elite have disproportionately affected the working class, leading to less funding for hospitals and pensions.
The contrast between national sentiment and financial stability creates a paradox. While Milei may have achieved macroeconomic goals, his declining political support has made markets anxious. With midterms approaching, the upcoming election on October 26 may determine his future and further economic outcomes for Argentina.
In Misiones province, local economies suffer, with farmers like Ygor Sobol shut down operations as deregulated markets drive prices down. The textile industry describes daily job losses as tariffs were cut unfairly favoring imports over local production, leading to a drastic drop in domestic manufacturing.
Despite the chaos, Milei remains optimistic that the short-term pain will yield long-term gains. He admires Margaret Thatcher, whose economic approach he emulates—though she remains a controversial figure in Argentina's history. This raises significant questions: Can Milei sustain his economic framework while navigating the social discontent it has sown? As international investors watch with hope, many ordinary Argentines are left feeling the brunt of the reforms that were promised to deliver a better future.
