In September 2023, Buenos Aires witnessed a dramatic election rally as hundreds gathered to support Javier Milei, a presidential candidate known for his unconventional tactics. Brandishing a chainsaw, Milei symbolized his intent to slash Argentina’s bloated state apparatus, which he criticized for its excessive public spending and reliance on debt. His campaign slogan, ‘afuera!’ (out!), resonated with voters frustrated by years of economic mismanagement, including inflation that soared to 211% annually and a poverty rate affecting 40% of the population. Milei’s promise of radical austerity measures, including cutting ministries, subsidies, and public jobs, struck a chord with those desperate for change. By December 2023, Milei assumed office and implemented his ‘chainsaw’ reforms, achieving Argentina’s first fiscal surplus in 14 years and reducing inflation to 36%. However, these gains came at a cost. Public protests erupted as pensioners, hospitals, and the working class bore the brunt of the cuts. Critics argue that Milei’s reforms have led to recession, job losses, and weakened public services, with some economists warning of an impending economic downturn. Despite international praise from figures like Donald Trump and Kemi Badenoch, Milei’s domestic support has waned, raising questions about the sustainability of his economic project. As midterm elections approach, Argentina faces a critical juncture: will Milei’s reforms be seen as a necessary sacrifice or a misguided experiment?
How President Milei’s ‘Thatcherite’ economics divided his nation – but won over Trump
