Javier Milei, the President of Argentina, is becoming increasingly noticeable to the United States and the rest of the world due to his significant implementation of controversial changes in Argentinian economic policies. His severe austerity measures, actions taken in a strict and rigid manner, aim towards reducing inflation by cutting state spending, affecting areas like pensions, healthcare, and education, leading to the elderly and vulnerable facing potential financial ruin and critical illness. This resulting desperation has fueled widespread unrest, as basic necessities and social security benefits are being stripped away.
According to Moody’s Analytics, Argentina’s unemployment rate was 6.4% in the fourth quarter of 2024. While there was very high inflation previously, monthly inflation has recently decreased to 2.4% in November 2024, the lowest in over four years. Although inflation has come down recently, it has remained a prominent issue—last October, Argentina began printing the diez mil bill (10,000 pesos) to keep up with rising costs. The pension cuts and healthcare blockade were enforced in response to this inflation, but Argentinian citizens have grown dismayed as their already modest income and their access to medical care continues to diminish.
Milei’s agenda includes a revolutionary change in the management of the Argentinian government: shifting from government control towards a more free-market approach. Under Milei’s presidency, the goal is to shrink the government’s role in the economy and instead allocate power to private businesses, both domestic and foreign. He argues that this will make the Argentinian economy more competitive and attract investment, leading to economic growth. However, as stated by Dr Joeri Schasfoort, host of Money and Marco, Argentinian history shows that free market fundamentalism, the idea that the economic system should have little government intervention, has disappointedly resulted in prior economic uncertainty, such as during the Military Junta in 1976, the Menem years in the 1990s, and the Macri administration in 2015.
Additionally, Milei’s economic policies strongly align with the principles of laissez-faire capitalism, which has historically led to market failure and instability. His drive to privatize state owned businesses and deregulate enterprises reflects a belief in minimal government intervention, which is the very definition of laissez-faire capitalism. Critics argue that this approach exacerbates inequality and economic volatility, which echoes the historical outcomes of the laissez-faire policy.
As reported by a news outlet called Al Jazeera, the surge in social turmoil has led to frequent uprisings, which the Argentinian government has responded to by spraying tear gas from water cannons and sending police on the streets to forcefully supress protests. Spraying tear gas and attacking protesters escalated the conflict between the government and its citizens, showing that the Argentinian government is willing to use forceful methods to suppress freedom of expression and freedom of petition.
One protester, a 75 year old male victim of police violence explains in an interview, “Like every Wednesday they attack us, they hit us even though we’re old, so now our grandchildren have had enough of that, and all the Argentinian football fans have also said, enough.”
The participation of soccer fans from rival clubs like Boca Juniors and River Plate in these protests is a surprising development, highlighting the widespread discontent with Milei’s policies. It is important to note that these teams, River and Boca, have a fierce and intense rivalry, where violence between opposing fans is a regular occurrence. In a rare display of unity, the two teams came together to express their solidarity against the government—revealing the profound impact Milei’s policies have had on the public.
Milei and Trump’s policies share similarities, both exhibiting populist right-wing tendencies. Javier Milei and Donald Trump mutually believe that deregulation is a key driver of economic growth; as both have a tendency to prioritize less government interference, which could potentially weaken essential consumer and environmental protections. Their focus on tax cuts, while intended to stimulate growth, raises valid concerns that such measures could increase income inequality between the rich and poor. Their preference for one-on-one trade deals could also cause more disagreement with other nations about trade, consequently making them less willing to collaborate on global issues.
Beyond this, appealing to conservative bases often involves socially divisive rhetoric policies. While Milei and Trump both present themselves as champions of economic freedom, their policy approaches carry the risk of destabilizing markets and severing social ties between international relations and different socioeconomic groups.
Furthermore, the US can observe how Argentina’s economic crisis has led to a realignment of its foreign policy, with a greater emphasis on strengthening ties with the US government. This displays how economic instability can force a nation to re-evaluate its international relationships and priorities, potentially leading to shifts in global alliances. For the United States, this serves as a reminder that domestic economic health is heavily linked to its international standing and influence. Additionally, the US should note the impact of rapid economic changes on a nation’s social fabric. In Argentina, the surge in poverty and inequality has fueled public outrage and placed immense pressure on the existing social structures. This highlights the need for the US to address its own issues of inequality and ensure that economic policies do not create further divisions within society, potentially leading to similar social consequences.
Ultimately, whether Milei’s policies will deliver its promised economic salvation or lead to further unrest remains the critical question that faces the people of Argentina in these coming weeks.