Is Argentina’s Miley, praised by Trump and Musk, an economic miracle maker?

Argentine President Javier Miley’s radical economic policies led to an economic miracle despite predictions of doom and gloom by economists, academics, and political opponents. Miley was the first foreign leader to meet with President-elect Trump after the November election, and was also greeted by Elon Musk on Channel X and in person at Musk’s headquarters in Texas.

Miley’s star continues to rise.

“What President Miley has done in Argentina economically is nothing short of a miracle,” Joseph Homer, executive director of the Center for a Free Safe Community, told FOX Business.

“In less than a year, he was first able to prevent the country from sliding into hyperinflation because when he took office last December 2023, the country was days or weeks away from entering hyperinflation. Therefore, he took some immediate measures. He then focused on reducing Spending, then focused on balancing the budget, and then, by mid-2024, managed to significantly reduce inflation.

Argentina’s Millie eliminates the deficit and is hailed as a model for Musk’s “DOGE”.

Miley’s administration implemented strict austerity measures, including deep cuts in public spending and subsidies. These measures led to a significant decrease in monthly inflation, falling from 25.5% in December 2023 to 2.7% in October 2024. The Argentine peso appreciated against the black market dollar, indicating increased confidence in the national currency. This estimate reflects the positive reception of Miley’s economic policies by financial markets.

Martin Menem, speaker of the Argentine House of Representatives and vice president of Miley’s political party, La Libertad Avanza, told Fox Business: “Today we have a fiscal surplus. We have reduced inflation. The economy is expanding. Credit is coming back. Poverty is increasing.” Real wages are recovering month by month, we are reducing taxes, and we are becoming attractive to domestic and foreign investors. With all this, expectations are growing, and every day we are getting closer to our goal. It is the rebuilding of the nation and the prosperity of Argentina.

“To get these results that we have never had before, we are doing what has never been done before. The results show that President Miley’s path is working. We have ended the deficit slide, and we will work every day to make it happen.” Liberating the economy to return to the growth path.”

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

FOX Business contacted two sources who signed a letter signed by 108 economists criticizing the Milei economics platform deployed ahead of the country’s elections. Economist Pablo Portez told FOX Business: “After re-reading the letter we signed, I stick to my position on the letter, noting that the government has abandoned the idea of ​​dollarization.”

Another signatory, economist Matthias Ferningo, said: “I stand by my position in the letter I signed because I believe it is fundamentally correct. Inflation has accelerated after the devaluation of the MAILI. We will have to see how sustainable the relative stability in the nominal exchange rate is.”

“The most contradictory thing about Miley’s speech and his policy is that he always emphasized in his speech that the state is his enemy. That it should not interfere,” Roberto Kachanowski, an economist who was not part of the letter, told FOX Business. In economics, prices are free and the state steals with taxes.

“Moreover, as a deputy, he said that taxes were an obstacle to slavery. The fact is that his pro-market rhetoric ended with the BCRA (Argentine Central Bank) not only intervening in the interest rate and leaving exchange controls, but also also maintaining exchange controls throughout this General, which represents a real confiscation for exporters.

Argentine Javier Mele turns inflation upside down even as poverty increases

Argentina’s government declared The first budget surplus in 14 years on Friday, giving the self-proclaimed liberal another big win. However, there are still criticisms of some of his policies.

“Despite promises of reform, the much-touted amendment targeting the so-called ‘political class’ under President Javier Miley has not materialized,” political analyst Antonella Marti told FOX Business. “Instead, his administration is filled with unruly officials.” Eligible individuals, family members, and ineligible individuals. Social media activists charged with promoting a moral and ideological agenda. This agenda, often framed in deeply religious and Christian tones, focuses on a personal model where dissent is not tolerated and leadership is quickly expelled from the fold.

“The brunt of government reshuffles has fallen disproportionately on the private sector, which faces higher taxes and shrinking real wages. Since Miley took office, the private sector has lost 166,000 jobs, while the public sector has seen 64,000 layoffs. This has To create a state of unemployment. A bleak scenario for consumption and poverty across the country. For example, meat consumption – a cultural staple – has fallen by 11%, with 71% of households no longer able to afford traditional asados. Rising utility costs, including electricity and water, have and gas, to increase the pressure.

Economist Diego Giacomini recently told FOX Business: “Miley says he will return competitiveness to the private sector over time by opening the CEPO (permitting free movement of capital) on a day when the exchange rate gap and inflation tend to be zero. Today, the price gap is The exchange rate is 3%, and according to the latest data, we are already there, and the CEPO has not yet opened.”

“In the end, economics will be nothing special for Javier Maelí. As someone who uses and exploits the word freedom, everything he ever does, morally, philosophically, philosophically and politically, is the antithesis of classical liberalism. So, when things end badly economically and socially, “Classical liberalism and freedom will be responsible, and this is very dangerous.”

While some experts suggest that President Miley’s policies have defied some initial economic criticism by achieving significant fiscal and monetary improvements, the social costs and continuing economic challenges point to a complex and nuanced outcome.

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Miley, who arrived in Washington this weekend to attend Trump’s inauguration, met with the US President President-elect In November at an America First Policy Institute gala, Trump congratulated the Argentine “for the work you did for Argentina… Make Argentina Great Again.”

“I think President Miley pulled off what many thought was impossible. He was able to turn the economy at least in a positive direction,” Homer said. “There is a lot to be done. He must get rid of currency controls, attract more investment and increase the purchasing power of the Argentine peso. It is very difficult to take office with a high approval rating and then maintain a high approval rating.” Throughout your first year, most bosses in the world taper off a bit by the end of the first year.

Reuters contributed to this report.