A revolta da Argentina de Milei

1. Escola Austríaca de Economia:

Milei é um grande defensor dessa escola, que prega um mercado totalmente livre e o mínimo de intervenção do Estado. Ele menciona:

Ludwig von Mises – Defensor do liberalismo clássico e crítico da intervenção estatal na economia.
Friedrich Hayek – Autor de O Caminho da Servidão, que argumenta contra o socialismo e a favor da economia de mercado.
Murray Rothbard – Defensor do anarcocapitalismo e da abolição do banco central, ideias que Milei apoia.

2. Milton Friedman (Monetarismo)

Embora não seja da Escola Austríaca, Friedman influenciou Milei com sua defesa da liberdade econômica e do controle da inflação via política monetária rígida.

3. Ayn Rand (Objetivismo)

Milei cita Rand e sua filosofia individualista e pró-mercado, baseada na ideia de que o egoísmo racional leva ao progresso econômico e social. Seu livro A Revolta de Atlas é uma referência para muitos liberais.

4. Juan Bautista Alberdi

Intelectual argentino do século XIX, considerado um dos arquitetos da Constituição liberal de 1853, que defendia o livre mercado e um Estado limitado. Milei frequentemente usa sua frase: "Gobernar es poblar" ("Governar é povoar").

Main KPIs,

Government Cost Reduction, High Productivity, Fiscal Balance.

Inflation controll

Javier Milei implementou três medidas principais para tentar controlar a inflação na Argentina:

Corte de Gastos Públicos (Ajuste Fiscal Severo)

Reduziu drasticamente os subsídios estatais, principalmente em energia e transporte.
Eliminou milhares de cargos públicos e congelou contratações no governo.
Suspendeu repasses a províncias para reduzir o déficit fiscal.

Desregulamentação da Economia

Revogou diversas regulações que limitavam a atuação do setor privado.
Enviou um "Decreto de Necessidade e Urgência" (DNU) com mais de 300 mudanças para simplificar o ambiente de negócios.
Facilitou a negociação de preços entre empresas, reduzindo controles de preços impostos por governos anteriores.

Política Monetária Rígida

Interrompeu a emissão de dinheiro pelo Banco Central para financiar o governo.
Aumentou a taxa de juros para conter a desvalorização do peso.
Implementou um plano de ajuste cambial para evitar uma disparada do dólar.

Javier Milei’s pension fund reforms are a major step in his broader libertarian agenda. His proposal includes ensuring the sustainability of the pension system while allowing individuals to opt for private retirement plans.
In March 2024, he addressed the National Congress, emphasizing the need for fiscal discipline and respect for contributors. However, in August 2024, when the Senate passed a bill increasing pension spending (amounting to 0.4% of GDP), Milei vetoed it, citing concerns about fiscal stability.

Key Reforms:

Proposal to introduce private retirement options.
Vetoed pension spending increase to maintain fiscal balance.

Pension funds are crucial to global investors because they represent significant pools of capital, providing stability and liquidity to financial markets. These funds typically have long-term investment horizons, making them key players in both developed and emerging economies.

Why Pension Funds Attract Global Investors:

They manage vast amounts of capital.
Their long-term strategies provide market stability.
Diversified investments across sectors and regions.

Understand why Canada is Canada:

Historically, foreign investors have had a limited role in Argentina’s pension system. Data from 2008 indicates that foreign investments accounted for only about 6% of Argentina’s total pension assets, with domestic institutions holding the majority. This suggests limited international exposure, though Milei’s reforms could change this dynamic.

Foreign Investment in Argentine Pension Funds:

Only around 6% of assets were foreign investments in 2008.

Majority of pension assets remain domestic.

Milei’s policies could mark a turning point for the libertarian movement in Latin America. His emphasis on market-driven solutions and reduced state intervention aligns with libertarian principles. If his economic approach proves successful, it could serve as a model for other Latin American countries exploring similar reforms.

Potential Impact on the Libertarian Movement in Latin America:

Demonstrates a real-world application of libertarian principles.
Could inspire other Latin American nations to adopt similar reforms.

The United States has expressed support for Milei’s economic reforms, recognizing them as a shift toward fiscal responsibility and market liberalization. This backing signals broader international interest in Argentina’s transformation.

U.S. Support for Argentina’s Reforms:

Views Milei’s measures as a step toward fiscal discipline.
Indicates global interest in Argentina’s libertarian shift.

If Milei’s policies succeed, Argentina could become a proving ground for libertarian governance. A self-sustaining economy with minimal state intervention would validate the effectiveness of these principles and could encourage broader adoption in Latin America.

How Argentina Could Prove the Libertarian Model:

Success would showcase the benefits of reduced government intervention.
A functioning market-driven economy could set a precedent for the region.

Argentina in Numbers

Javier Milei, the President of Argentina, is known for his strong libertarian views and adherence to specific values and principles. Here are his core beliefs that so I believe too:

Economic Principles:

Free Market Capitalism: Advocates for minimal government intervention (as Misses says in 📔Ludwig Von Misses - Interventionism - read more) in the economy and emphasizes the importance of free markets as a driver of prosperity.
Privatization: Supports the privatization of state-owned enterprises to improve efficiency and reduce public spending.
Deregulation: Believes in reducing bureaucratic red tape to encourage entrepreneurship and business growth.
Sound Money: Strongly opposes inflationary policies and advocates for dollarization of the Argentine economy to stabilize the currency.

Political Principles:

Limited Government: Promotes a small government model, focusing on reducing the size of the public sector and cutting unnecessary spending.
Individual Liberties: Places a high value on personal freedom, including economic freedom, free speech, and property rights.
Anti-Socialism: Opposes socialism and collectivist policies, which he argues lead to inefficiency and economic decline.

Social and Ethical Values:

Meritocracy: Believes in rewarding individual effort and talent rather than promoting policies based on equality of outcomes. As well as I believe, as well as we do in IFL and as well as 🇸🇬Lee Kuan Yew - A strategist’s strategist, A leader’s leader, A mentor’s mentor (ex-Prime Minister of Singapore).
Anti-Corruption: Advocates for transparency and integrity in governance, often criticizing political elites for corruption.
Self-Responsibility: Emphasizes personal responsibility and accountability as key to individual and societal progress.

Cultural Views:

Traditional Values: While not explicitly aligned with traditional conservatism, Milei often critiques progressive and populist ideologies.
Education Reform: Supports reforms to enhance quality and align education with market demands, reducing ideological influences in schools.

Milei’s principles are deeply rooted in libertarian economics as per as I believe, focusing on personal freedoms, small government, and economic efficiency, often challenging established political norms in Argentina. That’s why Argentine is turning up again.

Source: Elpeludomilei

Since taking office, Argentine President Javier Milei has achieved notable economic outcomes:

6 KPIs - VIVA LA LIBERTAD CARAJO

Inflation Control: Reduced monthly inflation from 25% in December 2023 to 2.7% by the end of 2024, marking a three-year low.
Fist Superavit since….
Budget Surplus: Achieved Argentina's first budget surplus in 14 years, equivalent to 0.3% of GDP.

Trade Surplus: Secured a record trade surplus of $18–19 billion in 2024, driven by increased grain and energy exports.
Economic Growth Outlook: Projected GDP growth of 5% for 2025.