EconomistaAustriaco on Nostr: The Miracle of Milei It was not easy to defend Javier Milei for years against ...
The Miracle of Milei
It was not easy to defend Javier Milei for years against economists, businessmen, and so many others who were scandalized by his ways. This group of people, 99.9% of whom included intellectuals, were entirely incapable of understanding the revolutionary phenomenon right before their eyes. The worst part is that they preferred well-behaved leftists over someone who actually proposed solutions to finally pull Argentines out of the statist quagmire they found themselves in after a century of infection with mental parasites like social rights.
But things are changing. After being called crazy, a threat to democracy, and after claims that he would never win or that he would last only a couple of weeks, Milei’s success has been so overwhelming that they can no longer ignore him. Inflation, which was traveling at more than 25% per month when he took office, is now below 3% and continues to fall. This is without mentioning the hyperinflation that Argentina likely would have faced had Milei not come to power.
Real wages, which initially suffered due to the necessary measures to confront the inherited catastrophe, have already recovered by almost 10% since March. Poverty is also beginning to decline significantly and is on track to end the year at a much lower level than when Milei took office. The country risk index, which hovered around 2000 points when Milei took office, has now fallen below 700 points and continues to drop, thanks to his radical policy of cutting government spending. The Argentine peso, which recently had no bottom and was massively depreciating against the dollar day by day, has remained extraordinarily stable, and the exchange rate gap has almost disappeared. Furthermore, with an appreciation of over 40%, the Argentine peso is on track to become the world’s best-performing currency this year, according to analyses based on data from the Bank for International Settlements. It seems like science fiction.
Meanwhile, the International Monetary Fund estimates that Milei’s Argentina will grow by 5% next year. How was this miracle, which absolutely no one—least of all the paper economists—thought possible, achieved? The answer is simple: freedom, freedom, freedom.
What Javier Milei has done is return freedom to Argentines by lifting the burden of parasitic statism that was suffocating and humiliating them daily.
Milei’s ideas are those of Milton Friedman, Friedrich Hayek, and Ludwig von Mises, among other giants of economics and philosophy. These are the same ideas that Chile applied in the past to become the most prosperous nation in Latin America—until it abandoned them. Milei argues what these geniuses had already warned: the State is the main problem. But what Milei has achieved is even more extraordinary because the most significant miracle is not the economic one—after all, freedom always leads to progress—but the political and cultural one. Milei has led a cultural libertarian revolution comparable in depth and magnitude only to Perón’s collectivist revolution nearly a century ago.
Those of us who have played any role in this liberal transformation in Argentina know, therefore, that the changes Milei and his remarkable team are making are likely to endure for a long time. Milei perfectly understands the importance of the cultural battle because he saw how Chile ultimately self-destructed due to the fatal ignorance and cowardice of its elites when it came to defending what had been achieved. That is why Minister Caputo is entirely correct when he says that Chile sank because it allowed the left to construct its cultural hegemony. And that is also why, with this diagnosis in mind, Milei and his team place special emphasis on this aspect. They do not want something similar to happen in their country, where a communist like Boric or Bachelet II could come to power and ruin everything.
The Chilean center-right, which may come to power next year, should take advantage of Milei’s success to offer the country radical solutions that will lift it out of the statist swamp in which it is currently mired. Unfortunately, they seem determined to please the left, which anticipates another government destined for failure.
📝:A.K
It was not easy to defend Javier Milei for years against economists, businessmen, and so many others who were scandalized by his ways. This group of people, 99.9% of whom included intellectuals, were entirely incapable of understanding the revolutionary phenomenon right before their eyes. The worst part is that they preferred well-behaved leftists over someone who actually proposed solutions to finally pull Argentines out of the statist quagmire they found themselves in after a century of infection with mental parasites like social rights.
But things are changing. After being called crazy, a threat to democracy, and after claims that he would never win or that he would last only a couple of weeks, Milei’s success has been so overwhelming that they can no longer ignore him. Inflation, which was traveling at more than 25% per month when he took office, is now below 3% and continues to fall. This is without mentioning the hyperinflation that Argentina likely would have faced had Milei not come to power.
Real wages, which initially suffered due to the necessary measures to confront the inherited catastrophe, have already recovered by almost 10% since March. Poverty is also beginning to decline significantly and is on track to end the year at a much lower level than when Milei took office. The country risk index, which hovered around 2000 points when Milei took office, has now fallen below 700 points and continues to drop, thanks to his radical policy of cutting government spending. The Argentine peso, which recently had no bottom and was massively depreciating against the dollar day by day, has remained extraordinarily stable, and the exchange rate gap has almost disappeared. Furthermore, with an appreciation of over 40%, the Argentine peso is on track to become the world’s best-performing currency this year, according to analyses based on data from the Bank for International Settlements. It seems like science fiction.
Meanwhile, the International Monetary Fund estimates that Milei’s Argentina will grow by 5% next year. How was this miracle, which absolutely no one—least of all the paper economists—thought possible, achieved? The answer is simple: freedom, freedom, freedom.
What Javier Milei has done is return freedom to Argentines by lifting the burden of parasitic statism that was suffocating and humiliating them daily.
Milei’s ideas are those of Milton Friedman, Friedrich Hayek, and Ludwig von Mises, among other giants of economics and philosophy. These are the same ideas that Chile applied in the past to become the most prosperous nation in Latin America—until it abandoned them. Milei argues what these geniuses had already warned: the State is the main problem. But what Milei has achieved is even more extraordinary because the most significant miracle is not the economic one—after all, freedom always leads to progress—but the political and cultural one. Milei has led a cultural libertarian revolution comparable in depth and magnitude only to Perón’s collectivist revolution nearly a century ago.
Those of us who have played any role in this liberal transformation in Argentina know, therefore, that the changes Milei and his remarkable team are making are likely to endure for a long time. Milei perfectly understands the importance of the cultural battle because he saw how Chile ultimately self-destructed due to the fatal ignorance and cowardice of its elites when it came to defending what had been achieved. That is why Minister Caputo is entirely correct when he says that Chile sank because it allowed the left to construct its cultural hegemony. And that is also why, with this diagnosis in mind, Milei and his team place special emphasis on this aspect. They do not want something similar to happen in their country, where a communist like Boric or Bachelet II could come to power and ruin everything.
The Chilean center-right, which may come to power next year, should take advantage of Milei’s success to offer the country radical solutions that will lift it out of the statist swamp in which it is currently mired. Unfortunately, they seem determined to please the left, which anticipates another government destined for failure.
📝:A.K