It was quite something to listen to Javier Milei last night at a conference here in Buenos Aires co-sponsored by the Cato Institute and Libertad y Progreso. And it was not too shabby that the president of Argentina was preceded by Elon Musk (speaking remotely) who made it clear that he is supporting what Milei is trying to do in Argentina, and, as a bonus, gave his views on many topics, including the role of government in the economy. Not a fan, it is fair to say, of the idea that the state should take the kind of activist role long advocated on the left and, regrettably, some sections these days of the right.
As for Milei, I think it’s fair to say that I have never heard a speech quite like it. In parts it was an economics lecture with a good bit of math thrown in (I don’t think the translator had an easy time). And in parts it was an analysis of the flaws that have held Argentina back for so long, much of which sounded like the kind of corporatism that those who advocate a “stakeholder” society here in the U.S. would like to see. Above all, Milei conveyed the sense that Argentina had essentially wasted a century, and that (if he gets his way) that long epoch had to come to a close. The speech was careful and serious — nice to have shout-outs to Locke and Hayek — although not without a few jibes (the governor of Buenos Aires Province was described as a “communist midget”). It will be worth taking a closer look at what he and Musk had to say in due course.
Milei has been president for only six months, but Argentina has announced its first quarterly fiscal surplus since 2008. Meanwhile, monthly inflation is falling, down to 4.2 percent in May (below expectations of around 5 percent) against 8.8 percent in April. Milei’s legislative agenda also took a step forward last night with a tied senate (the vice president cast the deciding vote) advancing a version of his legislative program amid sometimes violent protests outside the congress.
There is a long, long way to go. Life for many Argentines remains desperately hard. Nevertheless, Milei seems to enjoy around a 50 percent approval rating. “There is no alternative” (TINA) as Mrs. Thatcher used to say.