In Buenos Aires, September 2023, hundreds gathered, flags waving and phones recording as Javier Milei, with his signature unruly hair and sideburns, hoisted a roaring chainsaw above his head. This was not just a campaign rally; it was a potent symbol of his promise to drastically cut down Argentina’s bloated state, which he argued was responsible for crippling debt and rampant inflation.
Milei, a self-proclaimed libertarian superhero who once famously smashed a piñata of the Central Bank on live television, entered office in December 2023 amidst an economic crisis. With inflation soaring over 211% annually and nearly 40% of the population living in poverty, his radical austerity measures were seen by many as the only path forward.
Nearly two years later, Argentina boasts its first fiscal surplus in 14 years, and inflation has dramatically reduced from triple digits to around 36%. These macroeconomic achievements have garnered international praise, with UK Conservative leader Kemi Badenoch calling Milei’s approach a potential “template” for her party, and Donald Trump describing him as “my favourite president.” The two are set to meet at the White House.
However, this economic turnaround has not been without significant social cost. Heated protests have erupted across the country, with clashes involving police, tear gas, and rubber bullets. Critics, like economist Mercedes D’Alessandro, argue that Milei’s promise to make the “caste” – the wealthy elite and politicians – bear the brunt of the adjustment has failed. Instead, she contends, the burden has fallen heavily on ordinary citizens, with cuts to pensions, healthcare, and education.
Industries are also feeling the strain. Tea farmer Ygor Sobol from Misiones province reports closing his payroll and letting go of all employees after deregulation led to his crops being worth less than their production cost. Similarly, the textile industry has seen thousands of job losses, with Luciano Galfione, chairman of Fundacion Pro Tejer, blaming reduced tariffs and increased import competition for an “unequal playing field” that harms domestic producers.
Despite the economic hardships faced by many, Milei remains steadfast in his belief that his policies will ultimately improve the lives of Argentines. His supporters, like economist Miguel Boggiano, credit him with achieving crucial stability and are optimistic that his model could be emulated by other countries. Yet, concerns linger about the long-term sustainability of these reforms, particularly with looming debt repayments and the potential for social unrest.
Milei’s political future also faces challenges, with a loss in recent provincial elections and criticism for a perceived lack of empathy towards those affected by his cuts. As Argentina heads towards midterm elections, the nation’s verdict on Milei’s radical agenda remains uncertain. Will his economic successes be enough to offset domestic discontent, or will a loss of political capital unravel his reformist agenda? The story of Javier Milei’s presidency is far from over.