Argentina under a new government: what is happening with their economy?

Argentina's leader Javier Milei defies inflation doubters

Not so long ago, Argentina elected a new head to run the country. After the election, Javier Milei stated a few controversial things about the future of the country. These caused skepticism and other opinions over his new plans.

Now, more than 100 days after his start as leader, the politician plans to tackle runaway inflation. It seems to be working, too. He called himself an anarcho-capitalist and said that he takes most of his political advice from his dogs. The president has achieved what many political experts and even economists call radical plans that cannot be successful^[1].

J. Miley appears to have improved Argentina's economy already. President was a right-wing economist and television pundit. His combative style and tendency to embrace conspiracy theories have drawn comparisons to Donald Trump in the US. These facts have not prevented him from succeeding in the elections back in December.

Five months after starting his job, Argentina still has very high prices that go up every year. The numbers show prices went up by 287% until March. Lately, however, because of Milei's strict money-saving plans and beliefs in personal freedom, prices have been going up less each month for the past three months.

Next week, when we find out the numbers for April, there might be signs that Argentina's economy is improving, with prices increasing by only one number each month. In the beginning, Milei made big cuts to the government's spending, stopped building new things, gave less help with energy and transport, and reduced the number of government departments. He also made Argentina's money worth less than the money from the United States.

Javier Milei holds up a chainsaw and talks about blowing up Argentina's central bank since election campaign

He says climate change is a plan by socialists. Argentina, the second-biggest country in Latin America and the third-biggest economy has had problems with its money and government for many years. It has not paid back its debts nine times^[2]. Because its economy is not doing well, it has borrowed lots of money from different places, like the International Monetary Fund and China.

J. Milei strongly believes in libertarianism, a belief that the government should not be involved in most things. He wants to cut down on government spending to try to fix Argentina's economy. He still talks about using a chainsaw as a symbol of cutting down spending, but he hasn't actually blown up the central bank like he talked about during the election campaign.

He made many controversial claims about cryptocurrencies and digital markets. He was even called a pro-Bitcoin president. He was known for his criticism of central banking systems and even discussed the possible proposal to make Bitcoin legal tender in Argentina.

Milei also thinks that climate change is not real, and he says it's a plan made by socialists. He doesn't talk much about the bad things that happened in Argentina when the military was in charge during the 1970s and 1980s. He says he gets good advice from four big dogs: Murray, Milton, Robert, and Lucas.

Shock therapy for Argentina's economy: protests against austerity measures and reforms

Argentina is experiencing a period of change. The country now faces chaos as unions launch strikes against J. Milei's reforms. Workers are protesting against austerity measures and planned reforms that the libertarian president has announced. Airports, shops, schools, banks, and other services were closed in Argentina on Thursday. This was a 24-hour strike^[3].

Workers gathered against right-wing president J. Miley, who won a shock election last year after pledging to kickstart Argenitna's economy. During the campaign, he carried around a chainsaw and promised to do shock therapy in the country. He claims to have a plan to rescue the country from financial ruin by slashing public spending.

Argentina now has a heavy deficit and the world's highest inflation rate, nearly 300 percent higher than the previous year. Miley has managed to slow monthly inflation since his election. He also achieved the first quarterly budget surplus since 2008.

Now, his steps towards bettering the country and its economy have real results. However, his cost-costing policies have pushed up the high poverty levels that have already been up there. These new rulings also caused economic activity to plummet. These actions that triggered strikes marked the second nationwide union strike since Miley became the leader of Argentina.