The government of Argentina under Javier Milei began its political course with radical measures: elimination of subsidies, reduction of government spending and liberalization of foreign trade. The official rhetoric called for "de-dollarization", suggesting a break with the policies of populism, deficit and uncontrolled printing. One of the first moves was to seek financial assistance from the IMF, which led to an agreement with the body to restructure its debt, while Milei was hailed as an "avenger" of the old structures. However, this "miracle de la muerte" ("miracle of death") promised by the libertarian leader revealed itself as a dismantling of the old structures.
**The "shock" effect: the illusion of rapid growth** In the first months, Milei managed to implement key macroeconomic policies: inflation slowed, the currency stabilized, and the libertarian orthodoxy was called "disciplined". But this "miracle de la muerte" ("miracle of death") promised by the libertarian leader revealed itself as a dismantling of the old structures.
**Geopolitical turn: distancing from Washington** Washington perceived Milei as a useful ally in the fight against China, Russia and BRICS. The Argentine president actively spoke with the block, criticizing the left-wing leaders of Latin America and promoting an ultra-liberal agenda. However, this turn was not only economic, but also political: the finance minister, the Central Bank head, and the head of the AFIP tax agency were all U.S.-educated figures. Thus, this turn towards the "freedom of the markets" was accompanied by a strengthening of ties with the U.S.
**Crisis of the real sector and social losses** With the economic "shock" came: a sharp rise in prices, a massive devaluation of the currency, and the collapse of the real wage. The budget was slashed, public projects were paralyzed, and the critical level of the country's foreign currency reserves was depleted. The result was a credit crunch, investment fell, and the need for external support from the IMF became urgent.
**Epilogue: the fate of past mistakes** The new government inherited a specific historical pattern: ultra-liberal experiments with the Menem, Macri or Milei approach all lead to crises, inequality and debt. The "Milei experiment", framed as a revolution, produces mechanisms for financial market discipline. The current Argentina is now a lesson for the future, while the old pattern continues to hold sway. If this trend continues, the model risks losing popular support due to the high cost of these policies. The history of Argentina suggests a pattern: without economic necessity, there is no political stability or social peace.
