Last year, the Economist cautioned that Javier Milei posed a threat to democracy in Argentina just before his election. Fast forward twelve months, and this prominent voice of “Sensible Centrism” has shifted its perspective, now asserting that “Javier Milei’s reforms offer valuable insights for the world.”
This change in tone is understandable. In his inaugural year as president, Milei successfully reduced the inflation rate from an alarming one percent per day to a more manageable level. He deregulated the rental market, leading to a remarkable 170 percent increase in available apartments and a 40 percent decrease in rental prices. Furthermore, he has revitalized economic growth and achieved Argentina’s first budget surplus free of defaults in over a century. Business confidence is on the rise alongside stock market performance.
However, reversing decades of poor investment and governance inevitably comes with challenges. The poverty rate has escalated—particularly affecting senior citizens whose pensions have diminished significantly when adjusted for inflation. This scenario mirrors historical economic reforms worldwide; similar outcomes were observed during Margaret Thatcher’s policies in the 1980s and among post-Communist governments across Central Europe.
Despite these hardships, voters continue to support their president—the first advocate of free-market principles since 1916—fully aware that Argentina stands out as one of the few nations globally that has seen its wealth decline over recent decades.
A practical measure of true wealth can be gauged by how much time individuals must work to afford basic necessities like coffee or haircuts. According to research by Marian Tupy at HumanProgress, Americans have experienced a staggering 204 percent increase in their purchasing power since 1980; Chileans have seen an impressive rise of 156 percent while those from China—a nation transitioning away from Communism—have enjoyed an astonishing increase of 1682 percent. In stark contrast, Argentines find themselves facing a shocking reality: they are now approximately 13 percent poorer than they were four decades ago.
How did Milei manage this turnaround amidst such generational decline? By embracing classical liberal principles that once made Argentina prosperous prior to World War I. His administration has streamlined government operations by reducing public sector employment, eliminating several ministries, slashing tariffs significantly, curtailing public spending drastically, and halting excessive money printing by the central bank. Although he ultimately decided against adopting the U.S dollar—a move some believed would solidify his reforms against potential future Peronist reversals—he did implement measures allowing all currencies as legal tender within Argentina.
As noted by The Economist, “Argentina’s president is often mistakenly categorized alongside populists like Donald Trump or Viktor Orban.” Instead, he embodies genuine beliefs rooted in open markets and individual freedoms.
Interestingly enough though—and despite previous warnings about Latin America’s emerging hard right figures such as Bukele or Bolsonaro—the magazine’s stance on Milei appears markedly different today compared to six months ago when it grouped him with other populists.
Milei’s ideology diverges sharply from leaders like former Brazilian President Jair Bolsonaro or Hungary’s Prime Minister Orban; he identifies firmly as a libertarian who champions free trade while being welcoming towards immigration issues without engaging deeply into cultural conflicts—even expressing acceptance towards transgender individuals (“as long as I’m not footing their bills”).
Curiously enough though there are two policy areas where Milei does not align entirely with libertarian ideals: he holds strong anti-abortion views which set him apart within this political spectrum while also supporting Ukraine amid ongoing geopolitical tensions along with NATO initiatives.
So why do these two seemingly disparate figures get along so well? Why was Trump eager for Milei’s visit shortly after taking office? Partly because Trump’s brand doesn’t strictly equate with National Conservative protectionism; many advocates for free-market policies exist within his administration too—including notable figures like Elon Musk who regard Milei favorably due largely due his regulatory approach domestically speaking.
Milei recognized early on how effective it could be selling classical liberal ideas through blunt language reminiscent of Trumpian rhetoric—a style resonating well amid our current fast-paced digital age filled with distractions demanding attention-grabbing communication methods!
For instance: during one interview discussing governmental resource allocation inefficiencies compared private spending habits—Milton Friedman famously articulated this notion stating simply: “There are two types money exists: yours & mine.”
Mileis’ colorful take? “We can all act irresponsibly when it’s someone else’s expense!”
Such straightforward vernacular may not come naturally for traditional advocates advocating complex economic theories but evidence continues mounting across various regions including United States & Europe alike demonstrating success isn’t solely reliant upon policy specifics—it often hinges more heavily upon delivery style! Libertarians might need adapt accordingly if they wish remain relevant moving forward!
Graduated from University of Denver, Residing in Dallas, Texas. Political observer and a Conservative. Follow on Twitter for more.