Anarchy is the only slight glimmer of hope.
(Mick Jagger)
How does one stop the collapse of a country in shambles? What is the magic recipe for prosperity? Which direction should a system take when it has run into a dead end?
Economist and President of Argentina, Javier Milei, has spent a year in office trying to answer these questions. Understanding where he has succeeded and where he has failed could help us learn valuable lessons about navigating crises.
Given that Milei is a polarizing figure—the first libertarian president in modern history—it is easy to get lost in subjective debates. To avoid this, we will first examine the key facts of his presidency before interpreting their broader implications.
Before Milei took office, the official poverty rate was estimated at 42%, but new calculations place it closer to 53% 1. This discrepancy is due to previous administrations artificially inflating the peso’s value, masking the real extent of poverty. By revealing the true economic situation, Milei exposed a deeper crisis than initially reported. However, if his policies prove effective, projections suggest this number will decline in the future.
Milei inherited a nation teetering on hyperinflation, with a staggering 26% monthly inflation rate. Through drastic economic measures, he managed to reduce it to approximately 3% per month—a level comparable to some developed European countries like Germany, Poland, and Spain2.
One of Milei’s most controversial moves was slashing government jobs. His administration laid off around 35,000 public sector employees. Despite these cuts, overall unemployment has only slightly decreased, now resting at 6.9% 3.
Milei also drastically reduced the number of government ministries, eliminating nearly half of them. Critics argued this would cripple governance, but the country did not descend into chaos. Apart from protests by displaced workers, daily operations continued largely unaffected. For instance, the dissolution of the Ministry of Gender Equality did not lead to mass job losses for women. This raises an important question: how many government institutions are truly indispensable?
For the first time in years, Argentina’s economy has turned a small profit, allowing it to begin repaying its massive debt 4. This marks a significant departure from decades of deficit spending.
Milei’s radical policies have sparked political unrest. Public sector workers, left-wing groups, and influential clans have led protests, at times blocking streets and rallying media support5. However, despite these demonstrations, Milei’s approval ratings remain high, reaching levels similar to those at the start of his presidency6.
Milei’s relationship with the press has been openly hostile. His administration cut government funding for media outlets, leading to fierce opposition from journalists. He, in turn, accuses them of spreading disinformation7.
Though not central to his agenda, Milei’s administration has seen a major drop in crime. In Rosario, Argentina’s murder capital, homicides have fallen from over 200 to 70 in a year8.
Milei’s efforts were also noticed in the global arena. Some international investors began to see Argentina as an emerging opportunity, with firms like BlackRock and JP Morgan cautiously optimistic about long-term prospects. The International Monetary Fund (IMF)9, historically skeptical of Argentina’s fiscal policies, has praised the administration’s commitment to economic discipline.
However, some South American leaders are not so happy about Milei’s administration. Brazilian communist President Lula da Silva has openly criticized Milei, calling his policies “irresponsible” and warning that drastic spending cuts could lead to social unrest. Meanwhile, politicians in the United States and Europe have celebrated Milei as proof that free-market ideas can succeed, even in historically socialist-leaning countries.
Only time will tell whether Milei’s policies will lead Argentina to long-term prosperity or deeper instability. However, one thing is certain: radical change is not always as catastrophic as critics predict.
In the past, economic improvement has proven to positively impact all aspects of governmental functions. With wealthier people comes a better quality of life, and a better life fosters greater ambition. In our globalized world, a large, haven in the middle of the safest continent could become a prime destination for major investments.
It seems that, in just one year of presidency, Milei has managed to turn the tide and shift a deeply socialist country onto the path of capitalism. There is hope among Argentines that with the new way the country is heading, there will be greater investment, increased freedom, and expanded opportunities. Surely, it is a bold experiment—perhaps even a gamble—but if successful, it could set a precedent for other countries and demonstrate to the world that the freedom for which Milei fights so fiercely can bring prosperity not only to the wealthiest but to everyone.
It is easy to dismiss Argentina’s case as unique, to say, “Their history and circumstances are different; such policies wouldn’t work for us.” But perhaps, instead of fearing drastic reform, we should look to this nation of bold believers and remember a time when we, too, dared to believe in something.
References
1 Pietsch, B., & Feliba, D. (2025, January 21). In Milei’s Argentina, Trump sees a road map. The Washington Post.
2 Sosnow, E. (2025, January 20). Milei 2025: Between Argentina’s mid-term elections and IMF. Peterson Institute for International Economics.
3 Figueroa, S. (2024, January 17). Milei’s chainsaw cuts nearly 35,000 public sector jobs in 2024. Buenos Aires Times.
4 Milei, J. (2024). Fiscal monitor. Universidad Francisco Marroquín.
5 Lukiv, J., & Wright, G. (2024, June 13). Buenos Aires rocked by clashes over Milei reforms. BBC News.
6 Gallup. (2025, January 20). Javier Milei’s path forward: Argentina charts a new course.
7 LatAm Journalism Review. (2024, June 12). Argentine journalism forum denounces organized attack on social media and Javier Milei’s growing hostility against journalists.
8 Bloomberg. (2024, October 24). Argentina murder rate plunges as Milei pursues crackdown.
9 Lazarte, A. (2024, October 24). IMF to send team to Argentina after excellent Milei meeting. Buenos Aires Times.