Posted on 02/20/2024 9:16:35 PM PST by SeekAndFind
Argentinian President Javier Milei’s figurative chainsawing of the government bureaucracy appears to be paying off – and he is only about two months into his presidency. The country reported its first monthly budget surplus in almost 12 years, signaling a seismic shift in policy under Milei’s administration.
This achievement marks a tremendous accomplishment under its new libertarian leader, who ran on a platform of shrinking the government as much as possible.
The government of Argentina has posted its first monthly budget surplus in more than a decade — a major milestone for the new libertarian president, Javier Milei. His economic and budgetary reforms still face an uphill battle in his legislature, however.
With inflation and poverty ravaging much of the country, Mr. Milei’s stated goal of “shock therapy” for the nation has been met with adulation from ideologues young and old, and scorn from union bosses.
The nearly $600 million monthly surplus is the first to occur since August 2012, and the monthly inflation rate even fell in January to 20.6 percent from 25.5 percent. “The zero deficit is not negotiable,” the Economy Minister, Luis Caputo, says on X.
On February 2, the chamber of deputies passed a framework agreement for Mr. Milei’s reforms aimed at privatizing state companies, deregulating the economy, and making changes to the nation’s criminal and environmental laws. The legislature is still debating the fine text of the package, but if it passes, it would mark a significant victory for Mr. Milei’s libertarian theory of governance.
“They understood the historical context and chose to end the privileges of the caste and the corporate republic, in favor of the people, who have been impoverished and are hungry,” Mr. Milei said after the lower chamber passed the preliminary motion on his reform package.
This is pretty impressive considering that January was Milei’s first full month running the country. Pulling off this type of fiscal outcome is a significant feat considering that it includes the interest payment on the public debt.
Milei’s tenure has already been characterized by bold, sweeping reforms intended to shrink the size of the government and allow for more freedom in Argentina’s economy. Shortly after taking the reins, Milei began slashing government agencies, especially those intended for useless programs intended to push a decidedly leftist agenda.
In November, Argentina reached 183 percent inflation for 2023, impoverishing around 40 percent of the country, a reality that helped sweep Milei into power. Now, he's taking action, with his first move in office being an executive order that slashes the number of government ministries from 21 to nine. Among those put on the chopping block was the ministry of "women, genders, and diversity," a move he recently telegraphed in his criticisms of "social justice."
Late in December, Milei continued cleaning house, laying off 5,000 state employees.
Milei has already done away with most of the government’s various ministries. Now, his administration is further seeking to reduce government expenditures and the overall size of the state by laying off an estimated 5,000 government employees. This move is intended to streamline the government’s workforce as it grapples with devastating inflation.
The fact that Milei has already accomplished so much signals positive things for Argentina’s future, even if the path won’t exactly be full of roses and sunshine. Unraveling the damage caused by decades of socialist policies will certainly not be easy. But with Milei at the helm, the country has a chance of finally pulling itself out of its current economic morass.
DC and surrounding counties would go into a depression if Trump did this.
When was the last time we had a monthly surplus?
Clinton supposedly ran some surpluses, but then I heard later it was more due to juggling of books than tightening of belts.
As the Milei experiment proves itself, it is assured that the example will spread, and be raged at by the many, high-paid extraneous in government.
Awesome. Reminds me of the success of Pinochet’s economic reforms back in the day, but of course without some of the accompanying unpleasantness.
Economic or mental.
Oh yeah, both.
Last 2 years of the Clintoon admin. was “budget friendly”/balanced due to “The Contract With America”, Newt Gingrich, GOP, etc.. (Welfare reform & tax cuts):
https://rollcall.com/2019/09/25/the-contract-with-americas-legacy/
The wrong Argentine got elected pope in 2013. We should have had this guy.
You mean common sense actually works for government!
That means for decades the American public has been lied to on an epic scale. Fiscal responsibility can save a nation! What do you think will happen in DC if it’s initiated here in the USA?
Good for Argentina, they have a chance now to get out of poverty and give there children a future. Perhaps people will pay attention here.
Oh I dunno. I think Pinochet's program of giving free helicopter rides to Commies was awesome!
“Argentinian President Javier Milei’s figurative chainsawing of the government bureaucracy...”
He must be the next generation of Chainsaw Al. Who is Chainsaw Al, you ask?
https://en.wikipedia.org/wiki/Albert_J._Dunlap
Albert John Dunlap (July 26, 1937 – January 25, 2019) was an American corporate executive. He was known at the peak of his career as a professional turnaround management specialist and downsizer. The mass layoffs at his companies earned him the nicknames “Chainsaw Al” and “Rambo in Pinstripes”, after he posed for a photo wearing an ammo belt across his chest.
We could do it too, if the DS weren’t hell bent on destroying this country.
Maybe we should emigrate to Argentina.....
Some departments that need to be completely abolished are the TSA, DHS, DoE, to name a few. Many, or the rest, need to be completely overhauled.
Could never do that here now far too many people on the dole, the grift is too lucrative. If DJT cuts that off, the riots would be titanic.
When you say DoE, do you mean Education or Energy? Or preferably both?
From what I saw, you ar ecorrect.
There is a .gov website that shows the debt and annual deficit every year since like 1950...and if you look at the Clinto years....each year we still were running a deficit and adding to the debt. It got close to balanced...but not quite.
But...on the flip side, in was actually Gringrich’s budget..that I believe Clinton vetod a couple times before he signed it...that got the budget that close to balanced.
You are correct.
Why not both?
Book a trip to Argentina and boost their economy!
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