Source: Patriot Post | VIEW ORIGINAL POST ==>
Javier Milei, a former rock star and chainsaw-wielding economist turned politician, has reached one year in his surprising rise to become president of Argentina. The self-identified anarcho-capitalist is succeeding well past his critics’ pessimistic predictions.
While Argentina’s economic situation is far from rosy, Milei can be credited with turning the nation away from imminent disaster toward an economic recovery and promising future. Before Milei took office, inflation was averaging 25% growth per month, but it has now decreased to less than 3%.
Argentina, pre-Milei, was in an economic death spiral, thanks mainly to an oversized socialist-minded government tied up in knots with regulations and a welfare structure that it couldn’t afford to maintain. The South American nation found itself in this situation thanks to government overspending for decades, which no president was willing to really address.
As longtime political commentator Joaquin Morales Sola observed, “We’ve spent 40 years talking about the government spending more than it takes in, and no one did anything to control that spending. The first one is Milei. For him, what matters is … the budget surplus. That’s at the core of his administration.”
We have the same problem here in the U.S. Politicians from both parties too often promise more government handouts rather than offering any serious cuts to entitlement programs.
Part of the reason that Milei has been successful is that he is a powerful communicator who hasn’t shied away from telling people hard truths. Milei warned in his promise to cut back on government spending and deregulation agenda that it would be both necessary and initially painful.
For example, Milei’s elimination of cost controls on several government-subsidized services caused prices to jump significantly. For example, in December of last year, a Buenos Aires subway ride cost 52 pesos, roughly six cents, but it has risen to 757 pesos, or 75 cents. Monthly water bills went from $4.50 last year to upwards of $15.60 a month.
Yet the Argentine government has experienced its first budget surplus in over a century, and, again, overall inflation is now below 3%.
Some services have seen steep increases, and Milei’s cost-cutting moves have certainly raised the ire of unions who have protested him. Yet despite these headwinds, Milei surprisingly still holds a popularity rating of over 50%, rising to 57% this month, up 7% from September.
It appears that Argentines, who have long grown tired of politicians simply going about business the same way with little to show for it, are welcoming a man who is offering real change and a vision for a freer, more prosperous future. As one 34-year-old deli worker explained, “Last year, it was a shock to the system. I couldn’t keep up with the prices. I’m not saying I like the guy. I find his personality very weird and aggressive, but I admit, if he continues on this route, I’ll be very happy.”
It is no surprise that Milei has been compared to Donald Trump, a political outsider who dares to challenge the system and offer real solutions. Trump himself recognizes this about Milei, referring to him as his “favorite president.”
Milei is showing Argentina and the rest of the world that the road to economic prosperity is not via socialism but rather through free market capitalism. If he sticks to his plan and can reduce the regulatory state, Argentines will soon find their economic future prospects much more solid.
