Tue, 14 Oct 2025

Tue, 14 Oct 2025 How Milei's 'Thatcherite' economics divided his nation - but won over Trump

Ahead of Milei's visit to the White House - amid protests and anger on the streets back at home - Ione Wells unravels the paradox that Argentina's president has created
Here are some key points from the article: 1. Economic Reforms: Milei's government has implemented austerity measures, including cutting public spending and increasing taxes, which have helped reduce inflation and improve Argentina's financial situation. 2. Opposition Criticism: The opposition, led by left-wing governor Axel Kicillof, has criticized Milei's policies for being too harsh on workers and the poor. They argue that his government has neglected social programs and investment in hospitals and education. 3. US Intervention: US President Donald Trump has offered a $15 billion currency swap to Argentina, which has helped stabilize the country's economy. However, some critics argue that this intervention will not address the underlying problems facing Argentine society. 4. Market Confidence: Financial markets have generally supported Milei's economic program, but the recent loss of his party in local elections and opposition criticism have led to a decline in market confidence. 5. Long-term Consequences: Some economists warn that Milei's strategy of keeping inflation down by spending the country's reserves on propping up the peso may unravel if Argentina cannot pay its debts. The article also highlights some of the challenges facing Milei, including: 1. Lack of Political Experience: As a former deputy with only two years of experience in Congress, Milei lacks the political expertise needed to navigate complex economic and social issues. 2. Lack of Empathy: Critics argue that Milei's policies are driven by a lack of empathy for ordinary people, who are suffering from rocketing bills and a vanishing safety net. Overall, the article suggests that while Milei's economic reforms have achieved some successes, they may not be sustainable in the long term if market confidence continues to decline.
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