In its editorial of January 12, 2025, the influential British newspaper Guardian critically analyzed Javier Milei’s management as president of Argentina, establishing parallels with leaders like Donald Trump and questioning the results of his ultra-liberal policies. According to the newspaper, the affinity between Milei and Trump lies in their character as “political outsiders” and their radical right rhetoric combined with a fervor for deregulated capitalism.
Guardian He recalled that, after coming to power, Milei promised a “war against the bureaucrats”, drastic cuts in public spending and massive deregulation of the economy. However, the result, he assures, has been devastating: a recession that, by mid-2024, plunged more than half of the Argentine population into poverty.
The British newspaper argues that Milei did not win the 2023 elections as much as the previous government lost them. In a context of monthly inflation of 8%, voters’ fatigue with traditional parties and uncertainty about the future were skillfully capitalized by the then candidate. But his victory, he points out Guardianfailed to stop the crisis: monthly inflation climbed to 25% after taking office, before stabilizing around 3% last November, thanks to currency control measures.
“Milei did not win the last election, rather the previous government lost it. When voters went to the polls in October 2023, monthly inflation was around 8%, fueling frustration with the established parties and anxiety over the future, sentiments that Milei skillfully exploited. After his victory, monthly inflation soared to 25% before falling back below 3% in November. As a follower of Milton Friedman, Milei could claim that his. Cuts in the public sector were painful but necessary. This is far from the truth, as economist Matías Vernengo points out, is that Milei devalued the peso, which triggered an increase in internal prices, while using controls. exchange rates to contain new inflationary pressures,” reads the first paragraph of the editorial of the progressive British newspaper.
The article also highlights the paradox of a president who declares himself a defender of the free market, but who resorts to state interventions to mitigate the effects of his own policies. These measures, the media explains, have had a high social cost: a drop in real wages, massive layoffs and a collapsed public health system, while many people have lost access to private health insurance. During the summer, violent protests in Buenos Aires reflected widespread discontent with the adjustment.
Although the economy shows a timid recovery after what Guardian Called Milei’s “shock therapy,” he warns that social unrest could escalate if there are no significant improvements in living conditions. In the short term, the government faces a critical dilemma: the $44 billion loan from the International Monetary Fund (IMF) is running out, and new funds are being sought to ease currency controls without triggering a new run on the peso. The risk of an inflationary spiral threatens not only the economy, but also Milei’s popularity ahead of key legislative elections.
“This summer, Buenos Aires was rocked by violent protests against these measures. The economy is timidly recovering from Milei’s shock therapy, but more unrest is likely if living conditions do not improve. In the short term, the Milei’s ability to prevent a backlash depends on external factors Argentina’s $44 billion loan from the International Monetary Fund (IMF) is running out and the government is seeking additional funds to ease currency controls without provoking it. a massive sale of pesos. A scenario of that type could revive inflation and damage Milei’s popularity before the key legislative elections,” exaggerates and distorts the newspaper that dropped from X after the defeat of the Democrats in the US election in rejection of Elon Musk and Donald Trump.
The editorial highlights that, despite the IMF’s initial support for adjustment policies, the organization maintains reservations about the use of its resources to artificially support the currency, a practice that Argentina has already used in the past. In addition, the increasing dependence on Chinese financing since the 2018 financial crisis adds a complex geopolitical factor, especially in the face of pressure from Donald Trump for Milei to reduce ties with Beijing.
Finally, Guardian questions Milei’s legacy, arguing that his policies have caused considerable pain with little visible benefit. In 2024, consumer prices rose 160%, similar to the increase recorded during the last year of the previous government. Beyond the promises of rupture, Milei’s actions, the newspaper maintains, repeat the recipes of previous right-wing governments, favoring a small group of corporate interests while increasing inequality and suffering for the majority. The editorial concludes that Milei seems to be betting on leaving current problems to his successor, a strategy that he describes as cynical and short-term.
“Milei’s policies have caused great suffering and few visible benefits. Consumer prices rose 160% in his first year in office, roughly the same increase recorded during the last year of the previous government. Rather than representing a break As the economic historian Michael Bernstein observed, “laissez-faire” is often translated as “laissez-nous.” faire”: allowing corporate interests to operate with minimal oversight. These policies may enrich a select few in Argentina – or in Trump’s United States – but for the majority, they lead to greater hardship and inequality,” the newspaper concludes. in his editorial.
by RN
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