Why It Looks Like Milei’s Reforms Might Actually Be Working

I think milei being honest and saying its going to suck at first really helps him hold on to support.

Just be honest with people. He said it was going to suck. He didn't sugarcoat it.

Well he run a campaign saying everything was going to really suck at first, that gives him a lot of support when things suck

As a Chilean I really hope Argentina gets in better shape. All of Latin America would be glad to see them succeed. Btw, here in Santiago we are seeing something that had not happen for a while: Argentinians coming in mass to shop. I was in IKEA last week and most people shopping that day were from beyond the Andes. Clearly the inflation there has gone through the roof so it's more convenient for them to cross the border and shop for household items, electronics, and clothes in our stores, even after the inflation we went through and the high dollar exchange rate we still have. It's kind of crazy bc last year, before Milei, things were opposite: Chileans crossed the border in huge numbers to buy mostly food in Argentina, bc the devaluation of the peso there made everything really cheap for us.

Concerning the China trade thing. He was very clear that he didn't want people to stop trading with China. His goal was to stop the government from trading with China.

Good luck to Argentina.

Situation in Egypt is the same boat with hyperinflation due to atrocious economic management and sheer incompetence. I feel your pain and relate to everything I'm reading, I hope you come out of this sooner than later, and hopefully set a world example with your success in the near future 🤞🏼 Best wishes for all of us ❤

He never said he would cut trade ties with china. He vehemently believes in free trade. He opposes political alliances with the brics nations & wants to align more with the west. He delivered.

Argentinian here. A few notes. Apparently the idea isnt to ditch the Peso in favor of the Dollar, its more about a free use of EVERY currency out there, which taking into account our history of using the us dollar for savings, will result on that currency taking over the peso. But who knows really. As for China, he always said the private sector can do business with any country, yet Argentina as a state will try to avoid that. Las week for example, they announced that a port in the south that aims to aid ships crossin both oceans or reaching antarctica will no longer be a collab between argentina and china, and will recieve financial help from the US instead. Great summary, our political-economic history and present is incredibly convoluted, even for us.

To note - Argentina's public sector isn't like your public sector - like Venezuela with the PDVSA oil company - it was often used to buy votes or political favours in exchange for a job. Many Gulf countries do the same for their citizens in putting them in extremely comfy, low work demands public sector jobs - but those Gulf countries can get away with it due to essentially their majority migrant workforces. *This does not imply all public sector jobs everywhere are 'comfy'* - In reality, in most nations, they are often underpaid, understaffed and overworked.

Recession is thrown around in hushed tones like it’s a dirty word, but when your economy is as far out of whack as Argentinas, it’s exactly what needs to happen to get it back in line. Once this painful event has taken place the playing field will be levelled and they can build from there. Really hard right now for Argentinians but it’s long term thinking and I agree with this message.

Argentinians stay strong!! The world is watching, we are counting on you to show strength! Many bad people are trying to take over the good people. But Argentina is a shinning light for us all! We are all behind you!!!! Show us what you are made of!!!!

There is one bit of misinformation that I see repeated everywhere, Milei didn't suddenly changed his policy of dollarization in favour of currency competition, as the later has always been his policy. The term "dollarization" was used as a simplification due to the fact that Argentinians would most likely choose the dollar for their daily exchanges instead of let's say the Brazilian real, since argentinians are already accustomed to using the US dollar for their savings, therefore the term "dollarization" was chosen. This isn't something "radical" or unique in the region either as neighbouring Uruguay has this exact policy implemented.

The initial devaluation wasn't as sharp as you say. The "official" exchange rate was an absolute lie and only a handful of government official's friends could actually use it. Most of people and companies used either the black market ("dolar blue" as it was known here), or several types of exchange rates that you could get via the stock market and/or with heavily taxes over the official exchange rate. The peak inflation in january-december-february-march was due to the enormous amount of money the previous administration put on circulation in just a few months just to try to win the elections by shear Clientelism and patronage.

As an Argentinian, I think some thing to Note: 1) Some of people are will to resist to solve the economics problems of the Country. But, at what cost? It´s fair that Argentina produce electrical energity, oil and Gas and now the people have their bills dollarization? 2) Some of the Good news like superavits in the budget are in cost of not paying, have a lot of cuts of programns (not only about the politian CASTA) and a lot of increase of public service. If I don´t pay my bills and the ends of the month I will find me with more money, but it´s doesn´t mean that I solve the problem. 3) The industry is in very bad numbers. A lot of companies are closing or fired his emploees. 4) The social, is very traumating: as everything grow and increce, but no as fast as our salary, we are seeing that a lot of people are now entering in the poberty. 5) I think he has a lot of problems to express what he wants. He is all the time fighting with all the people who is against him or doestn´t thins as him. 6) Yesterday we have one of the biggest and masive march in defense of public education. From the Goberment they said it was all about politian and this is from the people who lost the election. But we are talking about 500/800K of people only in Buenos Aires. This may be a warining signal for him. He must attend to the peoples issues. That´s my thoughts. I´m not very enthusiastic about his or his government. Thanks for the space. (sorry for my bad writing).

I'm Costa Rican, but I have an Argentinian friend living there. She told me just 2 days before that she is considering not having more medical insurance because how insanely expensive it have turned, that their electricity bill went double, without the regulations Milei erased off, companies are demanding the prices they want for their services, and even their university isn't using their electricity in their buildings... Yes, Milei said it was going to suck. But this is not "to suck". That term becomes tooooooooooooooooo short for what's going on.

When watching news like this from foreign far away countries, it is good to see the locals correcting or collaborating the news story.

Only Argentinians can answer if the policies have worked. I hope they have worked. Argentina should be a big player on the global stage.

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