In November 2023, Argentina faced a staggering inflation rate of 211.4 percent and a poverty rate of 41.7 percent, affecting 19.5 million people living below the poverty line. The country was heading into elections with two starkly different candidates: Sergio Massa, a Peronist from the ruling coalition that had dominated Argentine politics for most of the twenty-first century (except for Mauricio Macri’s term), and Javier Milei, a libertarian outsider who gained fame through theatrical TV appearances denouncing socialism and preaching free-market economics in a nation steeped in statist ideology.
The idea that Milei could win the presidency seemed almost utopian. He faced not only what he called a “society sick with socialism” but also a well-oiled, decades-old Peronist political machine determined to cling to power. With a newly formed party and no political experience, Milei was at a clear disadvantage. To make matters worse, in the months leading up to the election, Sergio Massa, then Minister of Economy, employed various tactics to curb Milei’s libertarian momentum. Milei accused Massa of funding his campaign through uncontrolled money printing, which fueled inflation (140 percent annually in October 2023) and a 50 percent peso devaluation in August 2023. These measures clearly prioritized short-term electoral gains over Argentina’s economic stability — a heavy burden Milei would inherit.
When Javier Milei was declared the winner with over a 10-point margin, the shock was immense. There was widespread joy, but Milei also inherited a colossal challenge, as he famously declared in his first speech to the nation: “There is no money.”
What the “Experts” Said
On November 8, 2023, days before the election, The Guardian published an article about a letter signed by over 100 economists, including Thomas Piketty, Jayati Ghosh, and Branko Milanovic. They warned that electing Milei would bring “devastation” to Argentina, urging support for the very leaders who had driven inflation above 200 percent. Stabilizing a nation with Argentina’s economic indicators seemed not only daunting but nearly impossible in the short term. Yet, just a year and a half after Milei took office, the only thing “devastated” was the dire prediction of those 100+ experts.
The Economic Miracle
“There is no money,” Milei repeated relentlessly, and Argentines understood. On his inauguration day, they cheered a leader who, instead of promising the state would solve all their problems, vowed to get it out of their way. He urged citizens to tighten their belts and save resources to rebuild the nation.
Milei’s first step was balancing the budget. Through an aggressive program of public spending cuts, eliminating bureaucracy, and reducing public sector jobs, he erased Argentina’s massive fiscal deficit, paving the way for a historic economic recovery. Under his leadership, Argentina began taming inflation with rare fiscal discipline, not just regionally but globally. The latest data is astonishing: in May 2025, the consumer price index rose by just 1.5 percent, the lowest in five years. Remarkably, Milei achieved this without price controls but by liberalizing the economy, fostering market confidence, and slowing inflation. Annual inflation dropped from 211.4 percent in 2023 to 43.5 percent by mid-2025. Wholesale prices even fell by 0.3 percent in May, the best figure in 17 years. Poverty also declined sharply, from 52.9 percent in the first half of 2024 to 38.1 percent in the second, with UNICEF noting that 1.7 million children were lifted out of poverty since Milei took office.
These achievements were no fluke. They stemmed from a clear strategy: fiscal balance, reduced public spending, ending monetary expansion as a financing tool, and economic deregulation. The result? Greater stability, increased demand for the peso, falling inflation, and a rebound in employment and purchasing power.
What Can the United States Learn from Milei’s Government?
During the recent US presidential campaign between President Trump and then-Vice President Kamala Harris, the economic visions of the candidates couldn’t have been more different. Republicans, as they historically do, called for fiscal balance, reduced public spending, and boosting the economy through private investment. Trump even leaned on billionaire Elon Musk, who promised to create a “DOGE” institution to eliminate bureaucracy and excessive public spending. Republicans, led by Trump, won key states with a clear mandate to fix the economy, but campaign promises began to falter upon reaching the White House.
A Lack of Political Will?
Republicans often campaign on fiscal discipline, reducing spending, and tackling US debt, but they rarely fully deliver once in power. Recently, President Trump clashed publicly with Musk, who criticized Trump’s “Big Beautiful Bill” for expanding debt and raising the debt ceiling, straining their newfound alliance. Since the COVID-19 crisis, US debt has skyrocketed, inflation has surged, and Americans’ purchasing power has dwindled, with families needing multiple jobs to stay afloat. Band-aid solutions won’t cure this fever — they’ll only manage it until the patient collapses.
The US economy needs real remedies: slashing government spending, cutting taxes, reducing bureaucracy, and deregulating. If Milei could implement an effective stabilization program in Argentina — with a far weaker private sector and infinitely worse conditions — there’s no reason Trump, with majorities in both chambers, couldn’t do the same. All it takes is political will.
Argentina could be a model, not just for the US but for all first-world economies dragged down by decades of Keynesian policies that have slowly poisoned their systems. Milei has shown the way and proven it can be done. What are the others waiting for?
