How Did 108 Economists Predict Milei’s Results Exactly Wrong?

The Daily Economy ^ | 2/15/25 | John Miltimore

[EnderWiggin1970]

In November 2023, the warning came, as clear as an omen.

A political upstart was seeking office and, if elected, his policies were likely to cause “devastation” in his own country and “severely reduce policy space in the long run.”

The threat was a chainsaw-wielding disciple of Austrian economics from Argentina who embraced laissez-faire economics. The predictions of doom came not from Old Testament prophets, but 108 economists who signed a public letter saying his anachronistic ideas had long ago been discredited.

“As economists from around the world who are supportive of broad-based economic development in Argentina, we are especially concerned by the economic program of one of the candidates, which has become a major issue of discussion in the national election,” the letter read.

The economists (who included Thomas Piketty, a leading global scholar on wealth and income inequality) conceded that a desire for change in Argentina was understandable, considering the rampant inflation and economic crises the country was experiencing.

Yet the warning was clear.

“Javier Milei’s economic proposals are presented as a radical departure from the traditional economic thinking,” the economists wrote. “…we believe that these proposals, rooted in laissez-faire economics and involving contentious ideas like dollarization and significant reductions in government spending, are fraught with risks… . “

[EQAndyBuzz]

““108 Economists”, “51 Intelligence Experts”, “900 former DOJ employees”…how could they all be wrong? Because in every case when a supposedly comprehensive list of that sort is published they are by definition pushing a political position as opposed to exploring the facts.”

They could be so wrong because they are using ideological dogma to come up with their arguments instead of the facts.

[1Old Pro]

+1, well said.

[bert]

The premise of the economists was incorrect. The economic fact was, you can’t ride a dead horse.

Javier Milei in effect, began riding a completely new horse

[caddie]

Infiltration of the "economics professoriat" by stone Communists. Every school in every country, for the last century.

So bad that a pinhead like Krugman gets a pseudo-Nobel (what's up with that, BTW -- the whole fake Nobel in Economics creation).

[BeauBo]

Spectacular turnaround in Argentina under Milei.

From the article;

“Inflation, which had peaked at an annualized rate of 300 percent in April, nosedived, reaching a four-year low in November. In his first month in office, the Associated Foreign Press reports, Milei oversaw a record 25.5 percent (monthly) inflation rate. By November, inflation had fallen to 2.4 percent.

“In just 12 months we pulverized inflation,” the Economy Ministry wrote on X.

Meanwhile, Argentina’s economy officially exited recession.

GDP grew nearly four percent in the July-to-September quarter”