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March 6, 2026
Right-wing, populist president Javier Milei was elected in 2023 under the promises of massive economic reform and sweeping government restructuring. His vivid imagery, using a chainsaw to symbolize cutting government funding, was a large part of his landslide victory. However, the country at the time was facing extreme inflation, up to 300% year over year, due to historical debts and deficits, leading to a hyperinflation crisis making Argentina arguably unlivable for many.
His primary policies were fiscal “shock therapy” which involved a huge economic reset through the slashing of government funding, and targeted import and export subsidies. Second, he gradually attempted to move the unstable Argentinian peso to the more stable American Dollar, involving a devaluation of the peso. He also believes in trade liberalization, which would include reducing tariffs and making Argentina more free and open to the global market.
While this strategy was undoubtedly a gamble for the wellbeing of the country, it was subjectively a success. While unemployment, prices, and inflation went up significantly in the short term. Poverty rates also rose as a result of the sudden jump in prices, but this was supposedly all part of the “shock therapy” plan which Milei was implementing. However, some economic indicators show that things were changing for the better. Financial markets stabilized due to increased investment in infrastructure and proper government stability post reconstruction. The removal of restrictions on businesses, reduced price controls and the lowering of tariffs also worked in favor of Milei. These all made it easier for companies to operate in an environment where it was generally difficult to succeed prior to Milei.
However, the long term success seems to be widely uncertain, as “shock therapy” and other policies Milei have implemented remain highly untested, especially in tandem with one another. While reduced inflation may seem to be the initial goal, economic prosperity is reliant on higher investment, stronger exports, and lasting consistent job growth. These are the key indicators that determine how everyday Argentinians will prosper from changes Milei makes.
Overall, Milei’s changes are a drastic shift from typical economic policy, shying heavily away from market intervention and social welfare programs, and more towards spending cuts, deregulation and monetary discipline. These policies have already begun to reshape Argentina, economically, socially and in day to day life, but what’s unknown is the lasting effect that it may have. Milei’s extreme policy will affect the life of Argentinians for decades to come.
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