Javier Milei's historic win has left Argentina reeling. The president-elect's victory by a narrow margin of 41% to 32% has sparked debate over whether it represents genuine support for his policies or a response to the perceived economic blackmail from US President Donald Trump.
For many Argentinians, the prospect of Trump's economic aid hanging in the balance was enough to sway votes in Milei's favor. Agustin Cantilo, a 30-year-old broker who voted for Milei twice, admitted that he wouldn't have supported him if it weren't for the promise of stability brought by the US bailout.
Milei's platform has been marked by deep spending cuts and a policy of burning through dollar reserves to keep the peso overvalued. While this has led to a significant reduction in inflation from 200% annually, it has also resulted in a surge in imports that is severely affecting local industry and commerce. Real wages have declined, more than 200,000 jobs have been lost, and about 18,000 businesses have closed.
Economists are divided on the implications of Milei's victory. Hernán Letcher, director of the Centre for Argentine Political Economy, argued that the result was a surprise not only because opinion polls had failed to predict it but also because social indicators showed little positive performance during his presidency. "When you look at the social indicators, none of them has shown or ever had a positive performance," he said.
Sociologist Juan Gabriel Tokatlian suggested that Milei's campaign successfully tapped into widespread fear about the potential collapse of the economy if Trump did not back him. This created a sense of panic among voters who did not want another devaluation and its associated costs.
However, others were more critical of Milei's tactics. Aquiles Ferrario, an 82-year-old bookshop owner, expressed concern that his fellow countrymen had voted primarily out of fear rather than fury against a government perceived as divisive.
As Argentina looks to the future under Milei's leadership, one thing is clear: the relationship between the US and Argentina will remain closely tied. For many Argentinians, this has left them wondering about their country's place in the world – are they truly independent, or are they just a colony of the US?
For many Argentinians, the prospect of Trump's economic aid hanging in the balance was enough to sway votes in Milei's favor. Agustin Cantilo, a 30-year-old broker who voted for Milei twice, admitted that he wouldn't have supported him if it weren't for the promise of stability brought by the US bailout.
Milei's platform has been marked by deep spending cuts and a policy of burning through dollar reserves to keep the peso overvalued. While this has led to a significant reduction in inflation from 200% annually, it has also resulted in a surge in imports that is severely affecting local industry and commerce. Real wages have declined, more than 200,000 jobs have been lost, and about 18,000 businesses have closed.
Economists are divided on the implications of Milei's victory. Hernán Letcher, director of the Centre for Argentine Political Economy, argued that the result was a surprise not only because opinion polls had failed to predict it but also because social indicators showed little positive performance during his presidency. "When you look at the social indicators, none of them has shown or ever had a positive performance," he said.
Sociologist Juan Gabriel Tokatlian suggested that Milei's campaign successfully tapped into widespread fear about the potential collapse of the economy if Trump did not back him. This created a sense of panic among voters who did not want another devaluation and its associated costs.
However, others were more critical of Milei's tactics. Aquiles Ferrario, an 82-year-old bookshop owner, expressed concern that his fellow countrymen had voted primarily out of fear rather than fury against a government perceived as divisive.
As Argentina looks to the future under Milei's leadership, one thing is clear: the relationship between the US and Argentina will remain closely tied. For many Argentinians, this has left them wondering about their country's place in the world – are they truly independent, or are they just a colony of the US?
. Burning through dollar reserves and devaluing the peso might've brought down inflation to 200% but it's come at a huge cost - real wages have declined, industries are struggling, and businesses are closing left and right 
. I think it's time for Argentina to diversify its economy and not rely on just one country (US) for help 
. It's a ticking time bomb waiting to happen if they don't make some serious changes 
#Argentina #EconomicReform #DiversificationMatters
, like he literally took advantage of people being scared of Trump 
. I mean, inflation went from 200% to near zero, but at what cost? We're talking about industries shutting down left and right 
, people losing their jobs, and wages literally tanking 
... yeah, that's working out great for anyone outside of Buenos Aires 
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. What kind of leadership does this reflect? Are we really as independent as we think we are? And what does this mean for the future of Argentina? 
that's like... 18,000 + 
. But on the other hand, can't we do our own thing without relying so heavily on foreign support? 
. It sounds like we're just delaying the problem and hurting local businesses in the process 
. And yeah, it does sound sketchy that real wages have gone down and lots of businesses have closed. I mean, what even is the plan here? Burn through dollar reserves to keep the peso overvalued? That doesn't seem super sustainable... economists are divided on this stuff because they're all trying to figure out how this is going to play out in the long run 
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. But on the other hand, I mean, 200% inflation is insane