leatherhemet
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Let this be a cautionary tale whenever you read or hear "experts say...." or "98% of experts agree...." etc..
www.foxbusiness.com
When Javier Milei entered the race to be Argentina’s president, 108 notable economists said his policies could be a disaster. Three years later, the maverick president continues to prove them wrong.
As Argentina’s new president in December 2023, Milei faced an ailing economy due to corruption, inflation, excessive money printing and a bloated government. At that time, inflation was running at 211%, and exports were just $5 billion for the month. And GDP shrank by 2.3% in the last quarter of the year, according to government data.
A letter signed by 108 economists from around the world, that included Thomas Piketty and former Colombian Finance Minister Jose Antonio Ocampo, released before the 2023 election, warned that Milei’s economic platform was "fraught with risks that make them potentially very harmful for the Argentine economy and the Argentine people." They also added in their letter that, "However, while apparently simple solutions may be appealing, they are likely to cause more devastation in the real world in the short run, while severely reducing policy space in the long run."
Fast-forward to 2026, and things look a lot better. Inflation fell to 34% in April, and exports increased to almost $9 billion that same month. And GDP growth surged to 4.4% last year. "The fact is that Milei really knows his stuff," Evan Ellis, research professor of Latin American studies at the US Army War College Strategic Studies Institute told FOX Business.
ARGENTINA'S MILEI ELIMINATES DEFICIT, HAILED AS MODEL FOR MUSK'S 'DOGE'
Argentina's President Javier Milei gestures during a meeting with young people from the Industrial Entrepreneurs Forum of Paraguay (FEIP) organized by the Paraguayan Industrial Union (UIP) at the headquarters of the National Secretary of Sports in As (Daniel Duarte/AFP via Getty Images / Getty Images)
To make that economic bounce-back happen, Milei used policy levers similar to those President Ronald Reagan used when he took office in 1981. First, there was the so-called fiscal shock therapy. "Milei cut state subsidies, eliminated government ministries, which resulted in a primary surplus," Pete Earle, senior director of research at the American Institute for Economic Research, told FOX Business.
"The country curtailed the financing of fiscal deficits," Earle said. "The government reset its exchange rate with an informal dollarization, eliminating organized labor unions, and began external engagement by reopening its capital markets, which would result in more competition, which would be better for everyone."
"He was that quirky combo that he knew both the theory of minimizing government and the need to maximize individual freedom. He didn’t do things because he wanted votes," Ellis said.
108 top economists predicted 'devastation' — Argentina's Milei continues to prove them wrong
Three years into Milei's presidency, Argentina's economy has been transformed. Economists who predicted failure now see a playbook other nations could follow.
www.foxbusiness.com
When Javier Milei entered the race to be Argentina’s president, 108 notable economists said his policies could be a disaster. Three years later, the maverick president continues to prove them wrong.
As Argentina’s new president in December 2023, Milei faced an ailing economy due to corruption, inflation, excessive money printing and a bloated government. At that time, inflation was running at 211%, and exports were just $5 billion for the month. And GDP shrank by 2.3% in the last quarter of the year, according to government data.
A letter signed by 108 economists from around the world, that included Thomas Piketty and former Colombian Finance Minister Jose Antonio Ocampo, released before the 2023 election, warned that Milei’s economic platform was "fraught with risks that make them potentially very harmful for the Argentine economy and the Argentine people." They also added in their letter that, "However, while apparently simple solutions may be appealing, they are likely to cause more devastation in the real world in the short run, while severely reducing policy space in the long run."
Fast-forward to 2026, and things look a lot better. Inflation fell to 34% in April, and exports increased to almost $9 billion that same month. And GDP growth surged to 4.4% last year. "The fact is that Milei really knows his stuff," Evan Ellis, research professor of Latin American studies at the US Army War College Strategic Studies Institute told FOX Business.
ARGENTINA'S MILEI ELIMINATES DEFICIT, HAILED AS MODEL FOR MUSK'S 'DOGE'
Argentina's President Javier Milei gestures during a meeting with young people from the Industrial Entrepreneurs Forum of Paraguay (FEIP) organized by the Paraguayan Industrial Union (UIP) at the headquarters of the National Secretary of Sports in As (Daniel Duarte/AFP via Getty Images / Getty Images)
To make that economic bounce-back happen, Milei used policy levers similar to those President Ronald Reagan used when he took office in 1981. First, there was the so-called fiscal shock therapy. "Milei cut state subsidies, eliminated government ministries, which resulted in a primary surplus," Pete Earle, senior director of research at the American Institute for Economic Research, told FOX Business.
"The country curtailed the financing of fiscal deficits," Earle said. "The government reset its exchange rate with an informal dollarization, eliminating organized labor unions, and began external engagement by reopening its capital markets, which would result in more competition, which would be better for everyone."
"He was that quirky combo that he knew both the theory of minimizing government and the need to maximize individual freedom. He didn’t do things because he wanted votes," Ellis said.
