The Javier Milei government in Argentina kicks off with very meaningful economic measures, under the dishonest microscope of the media.
While the outgoing liberal Peronists destroyed Argentina’s economy, took the country to hyperinflation, and sent 40% of the once-proud population below the poverty line, it is for some reason Milei who is painted in the MSM as the ‘danger’, as an extremely risky bet made by a desperate populace.
Also, the Peronists are the political heirs of the brutal military dictatorship of Juan Domingo Perón – hence the name – but it is somehow Milei who is accused of ‘ultra-right’ or even, in a far-left ‘Foreign Policy’ meltdown, as a ‘wannabe fascist’.
In this scenario, independent journalists worldwide make it a point to be doing a play-by-play of the new president’s moves, trying to dismantle the ‘cascade effects’ and the outright lies.
One highlight of the first days of government was that he cut half of Argentina’s ministries, including the worthless ‘Ministry of Culture’ – to the despair of the leftist crowd worldwide.
While being sworn in as Argentina’s president on December 10th, Javier Milei was brutally honest, when he stated: “There is no alternative to austerity.”
The Economist reported:
“Announcing austerity upon taking office is usually political suicide in Argentina. Yet Mr. Milei’s somber message was received with cheers. Fans raised chainsaws into the air, in reference to his promise to cut down the size of the state.”
On December 12th, the new economy minister Luis Caputo unveiled a series of tough economic reforms.
“He announced a devaluation of the peso by over 50% (see chart), and promised to slash electricity and transport subsidies, halve the number of government ministries from 18 to nine, suspend public works and reduce federal transfers to Argentina’s 23 provinces. The government reckons these cuts amount to almost 3% of GDP.”
What is perhaps way less publicized in the media is that Milei will double child benefits and the value of a government food card for the country’s poorest.
As we see, Milei will cut tons of government waste ‘fat’, but will try to simultaneously concentrate spending where it really matters.
“The idea is to cut spending while temporarily increasing taxes to raise revenue, in order to lower the annual deficit from over 5% of GDP today to zero by the end of 2024. ‘We have come to solve the addiction to fiscal deficits’, said Mr. Caputo, noting that Argentina has been in the red for 113 of the past 123 years.”
People understand that ‘things may get worse before they get better’, because in the short term, these austere measures will lower growth.
“Mr. Milei’s emphasis on fiscal discipline may reassure markets that Argentina is not headed for disaster—if they choose to believe him. That would quickly pull inflation down, rather than push it up.”
Socialists, liberals and globalists of every stripe have called for demonstrations have been called on December 20th.
Mr. Milei is using his considerable political capital to pass hard reforms to try and get the economy going by mid-2024. Many question how long the pain will last.
The Art Newspaper reported:
“It only took a day into his term as Argentina’s new president for Javier Milei to get rid of the Ministry of Culture. Milei was inaugurated on 10 December, and the following day, the boisterously libertarian economist and former television commentator fulfilled his campaign promise with typical bravado. Also on the chopping block—or, rather, in the path of his chainsaw, which Milei carried throughout his campaign to symbolize his intent to slash government spending — was the Ministry of Women, Gender and Diversity.”
Many other ministries will be downsized and recombined such as the Ministry of Education, that Milei has called ‘the Ministry of Indoctrination’.
“The self-described “anarcho-capitalist” also made sweeping subsidy cuts for gas and electricity and cancelled public projects, deeming these actions necessary in order to get Argentina’s economy under control.”