Argentina’s Milei Pledges Economic Revival & US Free Trade Deal

[Social Media]

 

Argentine President Javier Milei expressed optimism for the nation’s economic future during a televised address on Tuesday, pledging significant reforms and promising that inflation would soon be "little more than a bad memory." Despite the challenges his administration faces, Milei painted a picture of brighter days ahead, declaring, “Happy times are coming in Argentina.”  

 

Milei outlined his government’s plan to pursue a free trade agreement with the United States next year, leveraging his role as the rotating president of the Mercosur economic bloc to expand the autonomy of its member states in crafting trade deals. This move aligns with his broader agenda of opening Argentina’s economy and fostering international partnerships.  

 

The self-described "anarcho-capitalist" also announced an ambitious tax reform aimed at reducing national taxation by 90 percent. Additionally, he promised to eliminate Argentina's strict currency controls, granting citizens the freedom to "use the currency they want in their daily transactions."  

 

Earlier on Tuesday, Milei met with leaders of the Argentine Rural Society, representing one of the world’s largest food producers. During the meeting, he pledged to cut export taxes beginning in 2025, a measure intended to support the agricultural sector and bolster the nation’s economy.  

 

Since taking office in December, Milei’s administration has implemented a sweeping austerity program aimed at eradicating Argentina’s budget deficit and curbing its chronic inflation. This has included significant cuts to subsidies for transport, fuel, and energy. However, these measures have come at a cost, with thousands of public servants losing their jobs.  

 

There have been some positive indicators. Monthly inflation in October fell to a three-year low, signaling potential progress under Milei’s economic strategy. However, the annual inflation rate remains alarmingly high, reaching 236.7 percent in August—one of the highest figures globally.  

Meanwhile, the social toll of these policies has been severe. Poverty levels climbed to 53 percent of the population during the first half of 2024, an increase of 11.2 percentage points since Milei assumed office.  

 

Despite these challenges, Milei remains steadfast in his vision for economic reform, emphasizing that short-term sacrifices are necessary for long-term prosperity. His administration’s efforts to overhaul Argentina’s fiscal and trade policies are seen as bold, yet they face scrutiny both domestically and internationally.  

 

Milei’s leadership has polarized opinion, with supporters applauding his determination to address deep-seated economic issues and critics questioning the social consequences of his policies. As his government continues to navigate these turbulent times, the promised "happy times" will be a critical test of his vision and the resilience of Argentina’s people.

 

Based on a report by France 24 2024-12-13

 

 

 

[JonnyF]

He's doing a great job. Within 2 years the economy will be booming.

 

It's like the polar opposite of the UK.  

[roquefort]

5 hours ago, JonnyF said:

He's doing a great job. Within 2 years the economy will be booming.

 

It's like the polar opposite of the UK.  

Not sure why anyone's confused about this comment. The facts are indisputable.

 

On the one hand you have the revival of an economy that's been destroyed by 70 years of socialism, on the other hand the ongoing destruction by socialism of an economy that was already tottering on the ropes.