Milei is already proving the Left-wing economic establishment wrong

🌈 Abstract

The article discusses the bold, free market reforms being implemented by Argentina's libertarian President Javier Milei, and how they are beginning to show signs of success despite the country's history of failed governments, economic collapses, and debt defaults.

🙋 Q&A

[01] Milei's Reforms

1. What are the key changes that have occurred in Argentina under Milei's presidency?

• Inflation has fallen to 11% and is expected to fall further
• Argentina recorded its first quarterly budget surplus since 2008, at 0.2% of GDP
• The central bank has cut interest rates three times in three weeks, though they remain high at 50%
• The peso has been the best-performing currency in the world in the first quarter of 2023
• Bond markets are rallying

2. How has Milei implemented his reforms?

• Milei has been ruthless, closing down entire government departments overnight without gradual cuts
• He massively devalued the peso on day one, tore up rent controls and price restrictions, and reduced worker protections
• He has promoted his reforms with "messianic zeal", patiently explaining the justification and long-term benefits

3. How do Milei's reforms challenge the global economic establishment?

• Milei's free market approach defies the global trend towards bigger government, more regulation, and rising deficits
• His success would show that free market reforms are possible, even after the short-lived Liz Truss government in the UK

[02] Implications for Other Countries

1. How does Milei's approach compare to the economic policies of other countries?

• Many developed countries, including the UK, are slipping into "Argentinian-style stagnation" with reliance on subsidies, price controls, and rising deficits
• Milei is providing a blueprint for how countries can break free from this model

2. What are the potential broader implications if Milei's reforms continue to succeed?

• Milei's success would challenge the global economic establishment's narrative on the need for bigger government and more regulation
• It could provide a template for other countries to escape from zero growth and economic stagnation