On Sunday, Argentina elected far-right outsider Javier Milei as its president, beating out his rival Sergio Massa. The former TV pundit turned politician has drawn comparisons to former US and Brazilian presidents Donald Trump and Jair Balsonaro from his far-right, anti-establishment views. Milei's campaign leveraged anger towards the current government due to rapid inflation and increasingly high poverty levels to defeat opponent Sergio Massa, securing 56% of the vote.
One of the largest promises Milei made on the campaign trail was the "dollarization" of Argentina if he was elected president. "Dollarization" is the process of switching out the preexisting local currency in exchange for the US Dollar. This promise was made amidst economic turmoil as the Argentine Peso experienced hyperinflation, passing the 120% mark of year-over-year inflation, according to the International Monetary Fund(IMF). Dollarization would essentially shut down the Argentine Central Bank, and all currency-related decisions would be made by the US, with Argentina having no say.
Milei has also advocated for other radical measures to bring Argentina back to the economic prosperity that has been long lost since the early 1900s, such as militarizing the prison system and privatizing healthcare, which has previously been kept public.
While not the ideal candidate for many, Milei's anti-establishment rhetoric resonated deeply with many Argentinians who have struggled in recent years. To many Argentinians, Milei represents hope for change, as they have lost faith in the current government.
It is too soon to say with certainty what lies in Argentina's future, and a leader with such strong libertarian ideals has never been elected to such a large country, but Milei's presidency will most certainly have impacts that go beyond Argentina and the next four years. Regardless of whether or not Milei can turn the Argentine economy around, it will have a significant impact on their South American neighbors; especially Brazil, who voted their far-right populist out of office a year prior. If Argentina under Milei performs well, it would weaken left-wing parties across South America, with the inverse being true as well. Ultimately, it is in the best interest of the Argentinian people, regardless of whether or not they like him, to hope that Milei's reform works. No one wants to see another disastrous presidency join a long list of Argentinian disasters that have come and gone in years and decades past.
- Ethan Deng
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This may be an oversimplification, but it seems like increased polarization is a phenomenon not singularly limited to America's current political system, but is happening on a global scale. Obviously, we know the current state of America's two-party system with the race likely being between Biden and Trump again to be extremely polarizing, and either side that wins likely will have a large portion of the country against their victory, but this pattern is also being reflected in the recently held elections of both Spain and Argentina (Spain with Pedro Sánchez and Argentina with Javier Milei). Both of these European countries have very recently elected leaders who have won by slim margins and are thus largely unpopular in their respective countries. Perhaps this is because the same factors that are leading to increased political polarization are similarly effective in contributing to political polarization abroad. It will be interesting to see if this effect continues to more countries.
Definitely interesting (and maybe even exciting) to see an openly anarcho-capitalist politician be elected to the presidency of a major country. Argentina has so many natural resources and so much economic potential (in 1913 it was one of the ten wealthiest countries per capita in the world). The protectionist approach and other Peronist (former party in power) policies have decimated a country that was once extremely promising. Milei will have a tough start getting legislation through given that his party is only two years old and has very few seats in the House and the Senate. That said, the Argentine people are hopeful about the radical change Milei has promised and we can only hope Milei works out for them. Hopefully the improvements brought about by free-market reform in Argentina will be lasting this time (unlike in the 1990s when free-market reforms were initially doing great fixing the economy until Mexico's financial crisis with the peso put a wet blanket on Argentina's economy as well). Good luck Argentina!
As Kostas mentioned, the view on climate change is going to negatively affect their environmental standards. As countries are slowly starting to recognize and push towards fighting back against the climate crisis, the new president could pose an issue towards the progression of the agenda. But at the same time, I think that the new president can provide the much needed change in Argentina. All things considered, he recognizes that in order to make positive change for the country, he will have to have more extreme goals. With this radical change that he is promising the nation, the economy has a chance of being saved. I think it is going to be really interesting to see how his plans are going to work out and if his following will change or grow.
I'm not a complete expert on Argentinian politics, but this guy is openly declared to be an anarcho-capitalist, and judging from what we are seeing in the US with rising neo-liberalist capitalist policies, I severely doubt that this guy is going to work for the people. In essence, Ancap is just our current capitalist system but bolstered ten-fold. In the US alone, corporations use politicians and deregulation to increase profits, and we have seen time and time again that this only hurts the people. When oil companies are allowed to artificially drive up prices, when medical care only cares for the healthy, when monopolies hide behind the stature of a "Non-profit" organization, and when the education system becomes a business with students as its customers. Imagine what this guy might do to all of these systems as an Anarcho Capitalist. I understand that the dictatorship before all of this took place was definitely horrifying, and I don't want to undermine the Argentinian's peoples' excitement for change, but substituting a dictator with western dictatorship of the bourgeoise doesn't seem to be a solution, at least in my opinion. I am admittedly bias against any and all policy that seeks to privatize public programs, but I can't be the only person who sees this individual as a red flag for the working class.
Also another thing to note about Milei is that his policies aren't really that revolutionary, considering a politician with similar viewpoints was elected years ago (Carlos Menem). Although his economy was kind of successful at first, everything fell apart in 2001, where poverty skyrocketed, so I don't get why we can expect a different result from Milei. Fun fact, one of the campaign theme songs that Milei uses is actually a ska piece named "Se viene estallido", or "the explosion is coming". As the name might suggest, this piece was written in 1998 in response to neoliberal reforms that signaled an impending collapse of the economy, which it did in 2001. So Milei is using a song in his campaign that seeks to revolt against the ideas he is trying to promote......
Anyways I apologize for going on this long, but I just really don't like Milei's policies on extreme privatization and accelerated capitalism. Mimicking the US is probably one of the worst things you can do for the working class, and I really hope Argentina doesn't have to suffer from a dictatorship of the rich.
Some have already commented on the implications of specific policies that Milei supports, but I want to talk a bit about the overall global political trends that are unfolding. Although polarization is increasing, we are primarily seeing an increase in far-right and anti-establishment views. Yes, the left is getting more extreme, but not nearly as much as what is happening on the right. Overall, more right-wing leaders are getting elected and maintaining power in influential countries. In the Netherlands, a far-right politician was recently elected, with many extreme anti-immigrant policies. The trend of far-right election results is very worrying, especially when compared to the historical rise of fascism in the 1920s-40s. I think this phenomenon applies to our unit - are these leaders really the choice of the general population? Or are elections or various forms of gerrymandering affecting results and voter turnout? I'm not familiar with Argentina or Spain's election processes, but the concept of elections/campaigns is definitely applicable to the trend of extremist politicians getting into office.
Milei appears to appeal as a breath of fresh air to the people, in hope of a more prosperous economy. Although Milei may not have a lot of support within the Argentinian government itself based on his extreme stances, I think he's popular based on the fact of his unique ideas and apparent enthusiasm, which I can't help but feel reads similar to Donald Trump's intriguing campaign hype of 2016. He's living in a country which wants to feel change, and is drawn to his clear eccentricity, which makes me believe he may burn out support in the next few years, or build a small loyal following, as some eccentric politicians have. Changing Argentina's currency could of corse be a potential disaster. Furthermore, his views may bode dangerous, as his agenda is clearly more extreme and could influence much of south America to be more experimental with their government as well. Countries across the world seem to have turned toward a polarization trend, which can only incite tension. While maximizing political freedom can be good, a libertarian goal is often based in unattainable ideals, and specific balance is needed in their government, or issues can ensue.
Milie policies of radical economic reform (significantly decreasing government spending, prioritizing a free market economy, and going away from the Peso to USD) may result in a more prosperous Argentina (one which has suffered under years of poor economic mismanagement). While I doubt full implementation of his "Anarcho Capitalism", I do believe that the country may deregulate and decrease taxes. Switching away from the Peso to USD removes the possibility of hyper-inflation by the government. The massive devaluation of the Peso has made attempts to resurrect it (raising interest rates and reducing printing) a lost cause not worth pursuing. Given that Milie is dollarizing the economy, has spoken openly against becoming partners with American adversaries such as China, and promotes free market principles that align with some American policies, it would be in the best interest of the United States to strengthen our relationship with Argentina. Given that China has already built connections throughout South America (via trade and debt traps), an American ally (much less supporter) would be beneficial to promoting our interest in the region.
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