Argentina's President Javier Millay had much to celebrate at the end of his first year in office. Milley, who was often seen wielding a chainsaw during last year's presidential campaign and supports free markets and limited government, told the audience: We left the desert, the recession ended, and our country finally began to grow. ”
no exaggeration
Over the past year, Millay single-handedly completely eliminated 10 of Argentina's 18 government agencies, laid off 34,000 government employees, and cut government spending by a third. The country's economy contracted by 3.5% this year, but is on track to grow by 5% in 2025.
Inflation, which had been running at nearly 30% a month before Millais' election, has settled to less than 3%. Further cuts are also likely as the national treasury enjoys a surplus for the first time in years.
Investors are reaping the benefits, with the Argentine stock market soaring an astonishing 66% immediately after Millay took office.
And the people are also enjoying tangible economic benefits. Thanks to the repeal of more than 330 federal regulations, including the repeal of rent controls, clothing prices have fallen by 20% and consumer electronics prices have fallen by a third. For the first time in years, wage growth has outpaced inflation.
Opinion polls reflect renewed optimism. A December Gallup poll found that more than 4 in 10 Argentines say the economy is doing well, up from just 1 in 4 a year ago, and more than half believe the economy is doing well. They also say that their own standard of living has improved.
parallel to the US
Since 2020, the United States has run a federal deficit of more than $8 trillion thanks to excessive government spending. The national debt currently exceeds $36 trillion, equivalent to 130 percent of the country's gross economic product. Interest on the national debt approaches $2 billion every day.
As the Federal Reserve monetized much of its debt by diluting the purchasing power of its currency, workers paid the price. As a result, the Federal Reserve's spending power declined by more than 20 percent over that period.
Elon Musk and Vivek Ramaswamy's mission is to cut U.S. government spending by a third. Musk is keeping an eye on what's happening in Argentina. He recently posted on X, “A rational formula to fix the U.S. government: Millais-style cuts on steroids.”
just starting
Millais proposes leaving much of what the government did under the previous administration to private interests. He has already shut down government infrastructure projects in anticipation of completion in private. He recently announced that he would invest $2.5 billion in developing his country's rich lithium deposits and an additional $3 billion in new oil pipelines. Last year alone, the country's shale oil and natural gas production increased, saving the government billions of dollars in energy imports while also increasing exports. He is moving to eliminate special protections for non-competitive sectors of the economy.
In short, he's setting an example for the Trump administration's Department of Government Efficiency (DOGE). DOGE is tasked with restoring normalcy to the government explosion madness that America experienced under the Marxist Biden administration.
Related articles:
The result of Millay's efforts: $600 million in budget surplus in two months
Argentina's Senate approves Millei's budget cuts and privatization
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