I mean, in some ways it helped initially. It’s true that inflation needed to be dramatically curbed, and austerity & currency devaluation helped with that (while massively spiking poverty rates). Inflation is now largely under control, which is great, and they avoided dollarization while largely aligning the exchange rate with the black market “blue” rate. It’s a problem that spending couldn’t solve, and it made sense to try to make Argentina a more competitive exporter, etc. etc.
BUT many of the changes he made could have (in my view: will have) seriously negative long-term effects: mass privitization of public sector agencies/programs, destroying unions and pro-worker regulations, massive deregulation, and elimating the country’s ability to regulate business in the future, massively increased wealth inequality. Also, massive currency devaluation could cause an affordability crisis in Argentina, and paradoxically higher inflation or even an inflationary spiral.
Also, the things that worked to curb inflation will only continue to work if their economy keeps growing, spending stays responsible, they maintain a fiscal surplus, etc. So far, that hasn’t been the case - they had to rely on a massive US bailout (IMF + currency swap), poverty has remained high, and the long-term outlook for working-class Argentinians is extremely tenuous.
I think Milei is a true believer. He’s devoted his life to the study of ridiculous AnCap economics. I think he thinks that making his & his buddies’ wallets fatter is how you fix the Argentinian economy. He’s wrong and stupid, but I think he’s good faith.
I think he is a “true believer” in the sense that he thinks making his & his buddies’ wallets fatter is his god-given right. I don’t think he believes it will help the average Argentinian.
I mean, in some ways it helped initially. It’s true that inflation needed to be dramatically curbed, and austerity & currency devaluation helped with that (while massively spiking poverty rates). Inflation is now largely under control, which is great, and they avoided dollarization while largely aligning the exchange rate with the black market “blue” rate. It’s a problem that spending couldn’t solve, and it made sense to try to make Argentina a more competitive exporter, etc. etc.
BUT many of the changes he made could have (in my view: will have) seriously negative long-term effects: mass privitization of public sector agencies/programs, destroying unions and pro-worker regulations, massive deregulation, and elimating the country’s ability to regulate business in the future, massively increased wealth inequality. Also, massive currency devaluation could cause an affordability crisis in Argentina, and paradoxically higher inflation or even an inflationary spiral.
Also, the things that worked to curb inflation will only continue to work if their economy keeps growing, spending stays responsible, they maintain a fiscal surplus, etc. So far, that hasn’t been the case - they had to rely on a massive US bailout (IMF + currency swap), poverty has remained high, and the long-term outlook for working-class Argentinians is extremely tenuous.
You say it like these policies were actually intended to solve any problem other than porky’s wallet not being fat enough.
I think Milei is a true believer. He’s devoted his life to the study of ridiculous AnCap economics. I think he thinks that making his & his buddies’ wallets fatter is how you fix the Argentinian economy. He’s wrong and stupid, but I think he’s good faith.
I think he is a “true believer” in the sense that he thinks making his & his buddies’ wallets fatter is his god-given right. I don’t think he believes it will help the average Argentinian.
I don’t believe that personally. I think he knows full-well he’s a comprador and he relishes it.