Honored by Trump and Musk, is Argentina’s Milei an economic miracle worker?

The harsh economic policies of Argentine President Javier Milei have led to an economic boom despite doom and gloom predictions by economists, academics and political opponents. Milei was the first foreign leader to meet with President-elect Trump after the November election, and has been welcomed by Elon Musk at X and in person at Musk’s headquarters in Texas.

Miley’s star continues to rise.

“What President Milei has done in Argentina economically is a miracle,” Joseph Humire, executive director of the Center for a Secure Free Society, told FOX Business.

“In less than a year, he was able to stop the country from going into hyperinflation because when he took office in December 2023, the country was within days or weeks of going into hyperinflation. Therefore, he took quick measures, he focused on reducing spending and then he focused on balancing the budget to be able to stabilize the economy from Argentina.”

ARGENTINA’S MILEI FINISHES FAILURE, HAILED AS MUSK’S ‘DOGE’ EXAMPLE

Milei’s administration has implemented strict austerity measures, including drastic cuts in public spending and subsidies. These actions led to a sharp drop in monthly inflation, down from 25.5% in December 2023 to 2.7% in October 2024. The Argentine peso strengthened against the black market dollar, indicating increased reliance on the national currency. This appreciation shows the positive reception of Milei’s economic policies by the financial markets.

Martín Menem, president of Argentina’s Chamber of Deputies and vice president of Milei’s political party, La Libertad Avanza, told FOX Business, “Today we have a lot of money. We have reduced inflation. The economy is growing. Debt is coming back. Poverty is coming back. Falling. Real wages are recovering in a month We are reducing taxes, expectations are growing, and every day we are getting closer to our goal, which is to rebuild the nation and prosper. of the people of Argentina.

“In order to have these results that we have never had, we are doing something that has never been done before. The results show that President Milei’s method is working. We have come to end the decline caused by the lack of funds, and we will work every day to reduce the economy so that we can return to the path of growth.”

Despite these successes, challenges remain. Austerity measures have led to increased unemployment and poverty, with more than half of the population affected. In addition, the economy is expected to shrink by 3% by 2024, indicating that although stabilization efforts have had positive results, structural problems remain. These are some of the reasons why experts and economists still question Miley’s achievements, comparing them to the narratives and policies they consider contradictory.

A woman holds up a sign with the words “Milei psychoanalyze yourself” as part of a national protest to protect public education against President Milei’s sharp budget cuts on April 23, 2024, in Buenos Aires, Argentina. (Photos by Ricardo Ceppi / Getty Images)

FOX Business contacted two sources who signed a letter signed by 108 economists criticizing Milei’s economic platform that was published before the state election. Economist Pablo Bortz told FOX Business, “After re-reading the letter we signed, I maintain my opinion about the letter, noting that the government abandoned the idea of ​​making dollars.”

Another signatory, economist Matías Vernengo, said, “I maintain my position in the letter I signed because I believe it is actually correct. Inflation increased after Milei’s devaluation. The stability of the exchange rate remains to be seen.”

Roberto Cachanosky, an economist who is not part of the book, told FOX Business, “The most controversial thing about Milei’s speech and her policy is that, in her speech, she always maintains that the state is her enemy. That it should not interfere in the economy. That prices should be free and that the state has stolen with taxes.

“Furthermore, as a deputy, he said that taxes are an obstacle to slavery. The fact is that his pro-market speech ended with the BCRA (Central Bank of Argentina) not only intervening in interest rates and leaving exchange controls, but. it also kept exchange controls this year all, which is a real seizure of exporters.”

ARGENTINA’S JAVIER MILEI TURNS INFL ON ITS HEAD EVEN AS POVERTY DEALS

President Javier Milei of La Libertad Avanza raises a saw next to representative of the province of Buenos Aires instead of governor Carolina Piparo of La Libertad Avanza during a rally September 25, 2023, in San Martin, Buenos Aires, in Argentina. (Photos by Tomas Cuesta / Getty Images)

Milei’s government announced Argentina’s first budget surplus in 14 years on Friday, handing the self-proclaimed liberal another major victory. However, criticism of some of his policies remains.

Political analyst Antonella Marty told FOX Business that, “Despite promises of reform, the most common reforms aimed at the so-called ‘political class’ under President Javier Milei have failed. Instead, his administration is filled with unqualified officials, family members and social media workers tasked with developing a moral agenda and the ideology of this agenda, which is often formulated in a deeply religious and messianic tone, focuses on the vision of humanity where blindness is concerned at the same time it is unbearable.

“The burden of government reform has fallen dramatically on the private sector, which is facing heavy taxation and shrinking real wages. Since Milei took office, the private sector has lost 166,000 jobs, while the public sector has lost 64,000 jobs. This has necessitated the dire situation of bankruptcy. and poverty across the country, for example, meat consumption – a cultural staple – has decreased by 11%, too 71% of families can no longer afford regular asados.

Argentina’s President Javier Milei (Daniel Bockwoldt/photo alliance via Getty Images/Getty Images)

Economist Diego Giacomini recently told FOX Business, “Milei says he will restore competition in the private sector over time by opening the CEPO (allowing the free movement of money) on a day when the exchange rate gap and inflation tend to be zero. Today, the exchange rate gap is at 3%, and, according to the latest data, we are already there, and he has not yet opened the CEPO “.

“In the end, the economy will not be different for Javier Milei. As someone who uses and uses the word freedom, everything he does with moral, philosophical, philosophical-political principles, the antipodes of classical liberalism. when things end badly economically and socially, classical liberalism is the guilty.

Although some experts suggest that the policies of President Milei have contradicted some of the first economic criticisms by obtaining a significant improvement in finances and finances, social costs and ongoing economic challenges suggest a complex and small result.

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Milei, who arrived in Washington this weekend for Trump’s inauguration, met the president-elect in November at an America First Policy Institute event, where Trump congratulated the Argentine for “the work you’ve done for Argentina. … Make Argentina great again.”

“I think President Milei has pulled off what many thought was impossible. He was able to transform the economy at least into a good state,” said Humire. “There is a lot to be done. He must remove currency controls, attract more investment and increase the purchasing power of the Argentine peso. It is very difficult to come into office with a high approval rating and maintain a high approval rating. Throughout your first year most presidents in the world sink a little at the end of the first year – Miley.

Reuters contributed to this report.