Along the bustling northern banks of Argentina’s Riachuelo River, luxury car sales are skyrocketing. This surge follows libertarian President Javier Milei’s decisive move to eliminate import restrictions, a policy celebrated by many.
In the upscale Puerto Madero financial district, streets buzz with bankers applauding President Milei for lifting the longstanding ban on online dollar sales. Meanwhile, high-end restaurants serve gourmet sushi and succulent steaks to Argentine oil executives, all of whom are thrilled by his aggressive push to attract foreign investment.
Yet, just across the polluted Riachuelo waterway, 34-year-old Veronica Leguizamon’s pantry holds little more than a few eggs, a carton of milk, and a handful of bread rolls.
Clutching a Tupperware container, she recently braved heavy rain to bring home dinner for her four daughters from a soup kitchen in her Isla Maciel neighborhood. This has become her new daily routine ever since President Milei drastically cut subsidies for public services and removed price controls on essential foods. “Before, we had choices about what to cook,” she lamented. “Now, whether we eat or not depends entirely on others.”
These starkly contrasting realities, unfolding in Buenos Aires neighborhoods separated by barely a kilometer, highlight the deep societal divisions polarizing the Argentine electorate ahead of Sunday’s (October 26, 2025) nationwide congressional midterm elections.
As citizens head to the polls, their widely divergent economic experiences and expectations will largely determine President Milei’s political future — and critically, whether the U.S. administration will continue its significant financial support for its ideologically aligned but financially struggling ally.
“Within my immediate circle, everyone is quite pleased with the current direction,” remarked 42-year-old Fernanda Díaz, who operates a yacht rental business in Puerto Madero. “But the moment I step outside that bubble, I see people deeply concerned about simply making ends meet.”
Milei’s Opposition Sends Ripples Through Markets
In a notable intervention, U.S. President Donald Trump weighed in on the midterm elections, cautioning that a defeat for President Milei by a “socialist or communist” could lead to the revocation of a $20 billion aid package for Argentina. This warning immediately triggered a sell-off in Argentine markets.
Trump’s remarks were widely understood to be a reference to Peronism, Argentina’s influential populist movement. This movement is often blamed for contributing to the severe economic instability that President Milei inherited when he took office in late 2023.
A history of unrestrained public spending under various Peronist administrations – including that of former President Cristina Fernández de Kirchner, who is currently under house arrest for corruption – has infamously led Argentina through cycles of hyperinflation and sovereign debt defaults.
“We desperately needed a significant change,” stated Ms. Díaz, recalling how she lost her executive position when the Chilean retail giant Falabella exited Argentina due to the crippling high inflation, import restrictions, and volatile exchange rates under the preceding Peronist government. “I enthusiastically voted for Milei’s government, full of hope at the beginning.”
Indeed, financial markets visibly recoil at the mere prospect of a Peronist resurgence.
Just last month, when the Peronist coalition secured a decisive victory over President Milei’s Libertarian Party in the Buenos Aires provincial elections, investors reacted with panic. Fearing a waning of support for his free-market reforms, they swiftly began withdrawing capital from Argentina.
In an exceptionally rare intervention, the U.S. Treasury stepped in, selling dollars to stem the surging demand for the U.S. currency. They also secured a $20 billion credit line and pledged an additional $20 billion in aid from private banks, strategically avoiding funds directly from U.S. taxpayers.
Each announcement from the U.S. administration was met with a leap in asset values. Having seemingly averted a full-blown currency crisis, President Milei and his supporters experienced a fleeting moment of triumph.
“I am proud of the U.S. support; it truly helps us become stronger,” enthused Luciano Naredo, a 28-year-old high-end car salesman in Puerto Madero. “I believe Argentina is finally reclaiming its rightful place on the global stage.”
The Public Grows Weary of the “Chainsaw” Austerity
While Isla Maciel has historically been a Peronist bastion, a significant 42% of the broader Avellaneda municipality actually voted for President Milei in 2023. They had placed their hopes on the unconventional political outsider to stabilize the economy and halt runaway triple-digit inflation.
Famously brandishing a diesel-spewing chainsaw at his rallies, President Milei embarked on a radical austerity program: he eliminated tens of thousands of government jobs, dramatically cut state spending, and depleted foreign exchange reserves in an effort to prop up the perpetually devaluing peso.
Indeed, inflation did begin to fall, seemingly delivering on President Milei’s primary campaign promise.
However, nearly two years into his ambitious economic overhaul, the purchasing power of ordinary Argentines has plummeted. Even with inflation declining, it still hovers above 30% annually, leaving Isla Maciel residents to witness their wages, pensions, and welfare payments shrink to unsustainable levels.
“You simply cannot survive on 290,000 pesos a month with today’s inflation,” stated 64-year-old Epifanía Contreras, referring to her meager $200 monthly pension, as she filled her plastic bowl with rice and peas at the Foundation of Isla Maciel soup kitchen. “The situation is steadily deteriorating, and it’s deeply unjust.”
Volunteers at the soup kitchen, serving traditional sopa paraguaya (a savory cornbread), reported that the demand for meals has more than doubled over the last year. Many who once sought occasional meals to save a little cash now arrive genuinely hungry, a testament to the escalating crisis.
“People are coming out of absolute necessity,” explained Maria Gomez, a volunteer cook. “It’s nothing short of total chaos.”
Reflecting this shift in sentiment, the Avellaneda municipality saw a one-third drop in support for President Milei’s Libertarian Party in last month’s provincial election compared to 2023. Voters are increasingly expressing nostalgia for the redistributive policies of the opposition Peronist party, even with its recent history of economic mismanagement.
Despite these challenges, President Milei continues to promise a harsh austerity program in his campaign speeches. Curiously, his signature chainsaw prop, once a ubiquitous symbol at his rallies, has been conspicuously absent for months.
Argentines Grapple with Lingering Uncertainty
Most opinion polls indicate an extremely close contest between President Milei’s La Libertad Avanza (Liberty Advances) party and the Peronist coalition. Sunday’s (October 26) elections will determine half of Argentina’s lower house (127 seats) and a third of the Senate (24 seats).
With his party currently holding less than 15% of Congress, the government’s last legislative success was in March. La Libertad Avanza desperately hopes to secure enough seats to safeguard Milei’s austerity measures, uphold presidential vetoes, and push through critical labor and tax reforms.
The stakes couldn’t be higher. A significant setback for President Milei in these elections could intensify pressure on the peso, potentially leading to a painful devaluation of the currency’s controlled exchange rate. This, in turn, would fuel inflation and severely jeopardize the President’s key economic achievements.
Once again, weary Argentines find themselves bracing for an uncertain future.
“Every new government takes office, criticizes its predecessor, vows to do things differently, and ultimately, it ends up being the same or even worse,” observed Matías Paredes, a 50-year-old real estate broker whose international clientele disappeared due to President Milei’s strong exchange rate policies. “This country seems forever stuck in these cycles.”