Is Milei’s plan to end the economic crisis working? | DW News
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- Опубліковано 21 бер 2024
- Argentina has the world’s worst inflation. Now inflation is slowing as anarcho-capitalist president Javier Milei pushes austerity and deregulation measures to revive the Latin American country’s struggling economy. Emerging markets specialist Alicia Garcia Herrero looks at Milei’s first 100 days in office.
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#argentina #milei #business
Wait until 2 years have passed. Then we'll truly know how Milei has done.
Wait until the fire has stopped burning and the ashes are cold before we know how Milei has done. It's difficult to know now.
@@Manolara1 To be fair it can hardly get worse for Argentinians.
@@happy_thinking Tell that to the people that he has had fired.
@@tatata1543 Those people will find another job where they are actually productive. (or create one)
There is a quote. "If everyone was employed in the army and fleet we would have full employment, but nothing to eat".
So is it great those people got laid off? Of course not, but it's necessary.
P.S. When I was laid off from a private firm it was a shock to me and it is very stressful even though I had savings, but 2 months later I found a job with 50% more money so in hindsight they did me a favor.
@tatata1543 oh no he fired government employees….
Sooooo let me get this straight. Argentina has been breaking its own legs for decades but when Milei gets into office barely one year in and everyone's already asking _"HEY?! What's the hold up? I thought this would be fixed already."_ DIDN'T ARGENTINA TAKE YEARS TO GET INTO THIS POSITION?! IT'S NOT GONNA IMPROVE OVERNIGHT, it's also not a testament of Milei's performance if it doesn't correct itself fast enough. That's like expecting to lose 100 lbs in one week. That 100 lbs didn't APPEAR in one week!!! Milei is bringing "Diet" as an economic idea. Doesn't matter how long it takes, he's on the right track.
Milei plan is just to destroy the state and transfer power to the private sector. What he should be doing is to transfer power to their citizens. He is a total joke.
Milei's plan is to destroy the state and transfer power to the private sector. What he should be doing is to transfer power to their citizens. He is a total joke.
So how long do you think it will take?
Meanwhile, lower classes are going hungry. So what do you expect them to do?? They were not having as hard a time before he came up. It's not something abstract about it.
@@DiegoGamboa-lo2lw So your solution is to kick the economic can down the road until it blows up even worse in the future?
How can you ask this so soon after his victory? You if you can turn around decades of mismanagement in a single quarter you are not a financial genius, you are a freaking wizard. Its gonna be some rough years for Argentinians, but hopefully they can build a much better country for their children than the one they grew up in.
Inflation since Milei took office: December: 25%, January 20%, February 13%, March 9% (projected)
True
@@Master_Potaterchief Inflation is at 270% compared to the last Februar. What are you smoking?
@@lupolinarthat's annual lol
@lupolinar dude, he is giving you the monthly inflation. Use your damaged brain. It is slowing down
After 40 years of trashing Argentina, it will take time. Patience is the key.
Patience is the key? Says you who can buy food easily, for the Argentinian it's another story.
Patience ... and another model for the economy
@@SERGIO-cr6uy I am Argentine, I am poor, I live with 200 dollars a month and I eat what the supermarkets leave next or inside the garbage can. I have been living this reality for many years. Do you think I'm worse since Milei took office? I am just as poor as always but I am happy now, because after so many decades I have hope.
@@Master_Potaterchief I do not wish anything bad to you or the Argentinians.
Can Milei fix the country, who knows?
Meanwhile you have to live, survive even more.
@@SERGIO-cr6uy One thing we know for sure...The socialist policies that have prevailed in Argentina for decades DON"T WORK. 50% poverty & top 3 worldwide in inflation proves it.
“There are no solutions. Only trade-offs.” Thomas Sowell
Sowell is a fraud
Thomas Sowell once said there are no solutions. Only trades. But That quote is misleading. Because it implies it all trades are equal. A good trade is a solution. A bad trade is a problem. Why is this complicated?
Don't think you are smarter than him. He didn't say all trades were equal. Just like fast, good, cheap. Pick 2, you can't have all 3. @@achinthmurali5207
@@achinthmurali5207how does it imply that they are equal?
I would say more it implies, that their value depend on your stance and POV
This underpins the upward revision to our 2024 forecast for average annual inflation from 260.0% y-o-y previously to 300.0% as of feb 28 2024
It's amazing how this comment section is filled with Argentinian economy specialists who have never set foot in Argentina
That's the great thing about a globalized economy, you don't need to be in a certain country to know the solutions to macroeconomic problems.
It's equally amazing that as soon as someone set foot on another country they automatically think they are "experts" of that country's affairs.
Everyone thinks they know how to fix the economy. Just like everyone has an opinion on politics, religion, abortion, etc. What did you expect from people? That they'd just admit that they don't know how to fix an economy? That would be admitting their own economic and political leanings for their own home countries may be as unfounded as their plans on how to fix Argentina, and we can't have that.
And how well did the Argentinian economy specialists in the country do? Oh right, terrible, that’s why someone like Milei was needed in the first place. I will always value education, expertise and experience over which country a person is from or lives in. If every person living in their own country was an expert, every country would be a utopia.
You dont need to be argentinian, or live in argentina, or even be an economist. The principle is simple: printing money to pay an excessive amount of government employees is the cause of inflation. Period.
Dude it will take at least 1.5 years patience
There's no room for patience if you're dying because you cannot buy food or medication
@@Mr.ZEZExSAURUS previous presidents did this mess for 4 decades what are you talking about milei is not god to make changes like magic. Don't be ignorant, let me ask what is your solution then?
@@Mr.ZEZExSAURUSYou want fast results now that your destructive idols are not in office.
@@Mr.ZEZExSAURUSwhen the people demand the impossible, only the liars can satisfy them
1.5 centuries that is.
I'm in Argentina now, and was there in December (and last April). The prices now are a little higher, but the value of the peso hasn't continued to inflate (it's about 1050 / $1, the same as in December) and wages have increased in the meantime, raising the purchasing power of local Argentinians
YES FINALLY SOMEONE WITH SENSE 😭😭😭😭😭😭
dude you're triping, prices are A LOT higher, wages have stagnated and the purchasing power is non existent. I'm argentinian, never saw a recesion so bad like this, in 45 years i'm alive
@@leandrocerneira I have seen videos saying the Milei government is selling off state owned companies to foreign investors, do you think Argentina is becoming a another banana republic or it's in a process of getting better?
@@raplopez4258 YES FINALLY A LIAR!
@@pavld335 k. That's how convincing your argument is. K. It is a waste of human potential 😊 maybe elaborate your argument?
Real wages, measured in USD, have actually risen since Milei was elected, and the peso has strengthened compared to the USD. The bad thing is that inflation in dollars has been even greater than the wage growth. That's why the government is trying to open up imports, which would be a great measure.
😂 a graat measure? OMG!
@@JesusGarcia-ed5zsMercantilism is outdated and has brought us where we are.
Peso strengthened in relation to the dollar? On what planet did this happen?
@@jamesjones-wv9ik On this planet, look it up.
No, they have not been rising. What are your sources?
12:00 "hmm 4th quarter numbers were still down"
He took office on December 10.
If this guy was a socialist or even a more moderate liberal the media would be preaching patience, not trying to evaluate him on 15 weeks of work.
No. They Will be saying that greedy corporations are causing high prices. Remember when the right is in power is the governments fault, When the left is in charged is everyone elses
Having been a fiscal basket case for so long , the country should be glad that someone was willing to step up and do the draconian thing.
It was that or decades more in the toilet with no hope of getting out barring a real live miracle, an actual hand of god one at that.
Oh we are happy but having 50% of poverty means a lot of people who need and want free stuff. No matter how much inflation or poverty it would take
@@benjaminfusseythey were 50% in 2023 already lol
@@a-channel3935 Its continued to increase and likely will accelerate because of the recession induced by Melei.
There is no such thing as "draconian cuts of expenditures." Debt isn't good for any nation or our liberty. You can disagree with the policy, but you don't have moral superiority with this one.
"Debt isn't good for any nation or our liberty" Just categorically wrong. Debt allows countries to expand their economies in order to reach scale, invest in certain public goods like infrastructure, old age pensions for those who cannot work in order to keep aggregate demand up, like how businesses expand via credit. The problem is when they overspend and can't furnish their obligations without inflating their currency. The draconian part of this is when Melei cuts vast swaths of the public sector with no alternative to the goods they provide nor to the incomes that people rely on. Its going to cause a recession if not worse which means unemployment, which means increases in poverty, stagnation and falls in wages. Moral superiority or not. Thats something Melei and his followers will have to fess up to because its inevitable with the policies he's putting in place.
@@4mazIngxXGamErI agree. Dept isn't the problem right wing economic illiterates make it out to be. Especially a nation states debt in its own currency.
Problem starts with debt in foreign currency. Didn't Mister smarty pants from argentinia shut down the central bank and introduce the dollar?!
From afar it seems like he primarily is rescuing the bank accounts of the upper class from the coming crash
Argentine Foreign Minister Mondino said last Saturday (23rd) that the Argentine government will not actively encourage Argentine companies to trade with China. Different from the previous government's position, she said that such activities should be left to the people to decide independently.
Yet they are actively encouraging trade with Israel. 💀
@@Jews_C0ntr0l_daa__worlddthe government will bring nothing, it's for the argentineans companies to do
Hacer negocio con el gobierno Chino es regalar el país. Saludos Gracia y ruta de la seda.
it's a good thing, you can not be sure about the chinese communist party economic policies right now (if they crack down their own companies, why wouldn't do with it deals made with foreign investors-as thet did in the real state sector-), and the fighting between the west and east could make these things worst, so it's simply a thing about a Government letting it's people decide where they put their money.
@@Jews_C0ntr0l_daa__worldd
Resources, a lot of them. Lithium and water for example.
It is working !!
If he could fix that many years of mismanagement of his country in 100 days he might also walk on water. It will take time but for first 3 months it is really good news that they accomplished that much.
No pain no gain, unfortunately
Great sociopolitic analysis.
my man hitting the gym right now! hahaha but it's true!
@@user-zh6om8ti5mbut it applies since you have to slow down a full speed train
poverty has increased 14% to 57.4% since Milei's been in power. easy for you to tell these millions more ppl slipping into poverty to be patient as Milei de-regulates the entire economy. will be interesting to see how things develop. in Milei's administrations policies I see many comparisons to the 90s convertibility plan that caused the Argentine 2001 crisis.
Miley himself said that it would get worse for over a year before starting the recovery. (He said it before being elected and in his first speech as president). An economic problem created by overspending for decades can't be solved in 3 months.
Also, he has not the majority in the parliament, so most of his laws have not been approved. He would like to liberalise the economy but has not the political power to do it. So, without the growth of investments brought by privatizations and liberalisations, there will be a bigger fall in economic activity produced by the budget cuts.
Even so, there have been already big improvements in the evolution of inflation, in the confidence in Argentinas currency and debt, or in the pricese of rental housing market.
This is the best crisis in a way because the people that get it FEEL HOPE
of course it works greetings from ARG 🇦🇷
200% inflation. There’s your reason why Milei got elected. In just a few short months, Milei already seems to be bringing the country on the right track. This should be a lesson to people that a government can only take. A government doesn’t produce. A small government, and self-sufficient population - That’s the key to a free society!
The problem with all of that is that such a society exists nowhere.
Draconian for government employees but not for the average person. They need to dump their currency and cut government spending. It will take time to unf$#% themselves.
Lol
And just who are those average persons?
@@marcosjuarez7809 the 40% who live in poverty while retirees get large pension checks in the Oliveras neighborhood in Buenos Aires while upriver in a village a child dies because of lack of medical care and clean water. Except outsiders only meet the residents of the Olivares neighborhood in Buenos Ares not the poor people in the countryside. Socialism isn't the answer. The answer is to pull the band aid off and treat the wound. That means dump the Peso that stops populist politicians from printing money.
@@raiconlan1 Socialism is not the answer and neither is right-wing to far-right libertarian conservatism. Centrism/moderatism is the answer.
@@marcosjuarez7809 The last government was socialist just in their talking points. The rest is just right wing economics
Watching this from Brazil.
Argentina is following a similar path as our former government.
Surprisingly, the Trump administration didn't come to save us, nor did the EU not to downplay these important trade relationships. They are, but emerging economies are a critical part of the trade diversity that we enjoy now.
It's painful for us to see our neighbor in this economic situation, and regardless of rhetoric, we stand together with the people of Argentina.
Which Argentinian problems resemble Brazils problems before, under or during Bolsonaro? I ask respectfully.
@ernestol.vacarezza5481 The situations are different, but a few similarities would be the rapid (attempted in Brazils case) privatization of public utilities, decoupling of the central bank and massive cuts to education and essential public services.
Months after Brazil attempted similar strategies our national currency fell by 45% to the US$ coupled by skyrocketing inflation /unemployment and drying up of credit for industries and small businesses. We are still feeling the pain of "shock reforms" that ultimately resulted in a doubling of debt to GDP.
@@davidmaisel8062 ahh. I see your point. Argentina’s currency devaluation is far worse. I lived in Brazil at one point in my life. And I was shocked because properties are priced in reais. In Argentina ever since I was a kid they were priced in dollars. We, Argentinians, have no trust in the peso. Whatever you call it. I’ve seen so many national currencies in the course of my life. Thanks!
if only nayib bukele was president of all latin america imagine how good the future would be in the 3 continents ( Mexico central america, south america, carribean etc )
@ChrisE-iy7ok idk if his policies would work as effectively. El Salvador is a small country so it's a lot easier to enforce laws compared to large countries with more spread out populations.
Excellent interview and commentary by Ms. Herrero.
Agree 100%.
*Freedom! Freedom! Live Freedom!*
The LION is the best in Latinoamérica!
Obviously it was going to get worse, at least in the short term. The Kirchner government spent more two decades creating an unsustainabled system based on clientelism.
You shut it down and the poor are going to get hit the hardest but there was no easy solution
Thomas Sowell once said there are no solutions. Only trades. But That quote is misleading. Because it implies it all trades are equal. A good trade is a solution. A bad trade is a problem. Why is this complicated?
achim challenge Sowell? a little modesty achim, you try to box above your category.
Each citizen must freely decide with whom they want to trade, it is not up to the state to decide.
There are no assumptions in Sowells statement. A good or bad trade off is determined by the persons making the trade
He's been in office for 3 months. It takes time for policy decisions as the top level to really have a noticeable impact for the average person good or bad, that is I wouldn't be so quick to give Millei credit or blame for any indicators right now
300% inflation is good. the projection in the next year will be 500% soo yeah you are right.
@r3dpowel796 OK? Personally, I'm not very big on Millei. But I'm also aware the impacts of macroeconomic policy take away to be felt and show up, I think it's too early to say we have any picture of how it's going specifically with hi.
Generally Argentina's kinda screwed, everyone knows that
Give milei 2 years to see his plan work or not
he is going to sell all infrastructures to american multicorps and you will see how much to pay for electricity and water.
Look at the inflation rate (lowering), the numbers of the central bank, the monetary base, the difference between illegal and legal dolar, the debt with importators, the payment of the fmi debt.
Milei is doing an excellent work in fiscal terms, he is not progressing much in the social situation because he doesn't have legislative majority and the opposition is blocking everything.
Milei is a goddamn badass.
Thanks to him poverty levels had incresed big time and purchasing power has never been lower than now.
@@Trutch-xm2drAnd?
@@Trutch-xm2drIt's short term pain for long term gain. You can't unfuck an economy overnight.
@@multimeter2859 his plan is to destroy the sate and sell it to his Atlas Newrork partners. He doesn't give a damn about the common citizen,
@@multimeter2859 Milei's main objective is the destruction of the state and to transfer power from the state to private hands. To his friends from Atlas Newtork. He is not interested in helping the common citizen.
Something is NOT adding up, the world has "new" BI-llionaires every other day YET people all over the world are struggling to feed and house themselves NOT just Argentina...
It's just the public institutions and private institutions becoming one.
One world order.
Money isn't real. It's just who is allowed to operate, and who isn't that indicates wealth and power.
They can make a begger the owner of the world, or a successful businessman a begger over night.
So it's never about money. It's about who is given the means of industry and production.
And it's never the population of a country that holds the wealth of physical assets.
It's the physical assets that they are taking...........not the money.
Money doesn't really exist.
It's only for the slaves.
The masters dral in assets and the liberties granted to the chosen few.
I don't know if Milei will be able to fix things, but he hasn't even been in office a year yet. Give him some more time, see what happens.
Unfortunately, everybody must eat everyday
@@jennyvinyl85looked like there was a lot of food at those markets. Lots of cars on the streets. There’s always someone in personal distress. This happens no matter if you have a good safety net.
Frankly, I think your comment represents bias against free economies and private property.
It does take time to sell out a country. Sure he needs.😉
More time for what? To get the country more in debt with the IMF, increase poverty numbers, destroy national science and industry?
@@nunyabidness3075 Lots of food and no money to buy it
This will take 15-18 months to get under control
Cutting spending below what is taxed will slow inflation more than high interest. Cutting regulations to stimulate production will cut inflation more. Inflation is caused by too many dollars(printing more than the government is able to tax) chasing goods the economy cannot produce. Cutting regulations, allowing more people to produce more brings the cost or each item down.
The trouble is Argentine politicians refuse to cut down the govt's spending, because they are the ones to lose.
Milei is doing all that you wrote, that is why inflation has been following this course since Milei took office: December 25%, January 20%, February 13%, March 9% (projected).
@@ignacio.carral It's true, Milei is having a lot of problems getting laws passed, but luckily here in Argentina the president has a lot of power and despite all the obstacles, Milei was able to reduce the state in half and is eliminating a lot of corruption, that's why the state Argentina is already in superavit again.
Research “price gouging” and “captured industries”
@@Master_Potaterchief superavit mediante pisar las tarifas, no pagarle a cammesa y licuar jubilaciones
This situation is a bit similar to what Poland went through in 1990. It was tough, but worked pretty well back then (though lots of people in Poland still hates these times).
President Milei is a 'Wolverine'not 'Merlin', he needs time to be at his side for economic reform to work, unlike magic.
What Javier is doing in Argentina is working. He's doing everything China did to grow into second largest economy in the world.
He devalued the Argentinian peso. Which lower wages and slow down inflation.
He lowered Argentinians tariffs on exports.
These two things alone will attract more foreign investors who want to build manufacturing factories in Argentina.
Also let's be real no Latin American country would be allowed to do this without the blessing of the U.S. That's why Argentina couldn't join the BRICS.
Who wants to build factories In Argentina? The Americans can get as good a deal from
Mexico and that’s on their doorstep, not thousands of miles away.
Yes, it is working!
Yes! Commodity Exchange Rates can be used to Stabilize the Peso Economy.
No bc of the toxic policies of previous governments and the now bloated and wasteful governments.
@@raiconlan1 Yes Bro!
No the only way to move is to dollarize so future president's can't print money. Once done keep taxes and regulations low it'll take time but gradually things will improve.
Doucheland and USA should take notes from Javie Milei on how to deal with bloated government.
100 days and there's improovement already.
Yes, it is working.
LOL
Milei 🏆🏆🏆
6:06 this will be America in a few years if central bank doesn't stop spending money. Javier is saving Argentina.
Wondering if first 100 days did reverse past decades of idiotic economic policies, that's not just wishful thinking, that's simply miracle of biblical proportion! Patience!
I would like to see the UK and Argentina to work together to develop natural gas discoveries in and around the Falkland Islands/Melvinas Islands. The UK has the technology and it would be nice to see the two countries to work out a profit sharing plan and this could help pump in the dollars that will help get Argentina’s economy back on track?
Uk is already on that and with no intention or necesity to work togheter with argentina.
sharing? it will be one sided exploitation
What does Argentina actually bring to the table here in this 'collaboration' though? The UK owns the gas fields, is the one with the required expertise, and would have to be bankrolling the entire operation as Argentina is broke (not to mention that Milei's philosophy is that the government shouldn't be involved with such operation and it should be left to private enterprise instead)
MILEI THE MAN👍🏻
Great questions by the interviewer
The difference between being poor and being rich is one dollar. If you spend one dollar more than what you earn you are poor, if you spend one less dollar that you earn you will be always rich. Spending more and more is not a sustainable solution, not for people, not for countries.
True but the problem is that people aren't smart enough to understand this, they're gonna vote for people who will spend, that's why in order to get elected we need to spend, it's the sad truth
I don't think Milei is anarcho-capitalist, as stated in the description. Balancing the books and cutting back government spending to curb inflation is far from anarchy. It seems to be going well so far, despite the increased financial pressure felt by the most vulnerable people. I think they should slow down a bit, to not go too deep into recession, but otherwise the direction is looking good.
Dollarization is a catchy phrase, but I agree it's not possible in a couple months, or even years. Economic liberalization is another catchy campaign goal, but balancing the trade volume is much more important, and the leading economies are going in the opposite direction, enacting more protectionist policies.
You misunderstand the term, try looking it up.
He's philosophically an anarcho-capitalist, but he's said that in practice he's a minarchist.
Milei said years ago that philosophically he is an anorcapitalist, but since he lives on planet Earth, in reality he is a minarchist (from what I understand that the state should only exist for health and safety).
He is AnCap, he just doesn't see the world as advanced enough to go for that route and contents with being just Minarchist for now.
The economy is already partially dollarized... and easy to totally transition
" the first problem of inflation is always spending - milton friedman.
Cavallo's convertibility is not the same as full dollarization or allowing competion of currencies in a market. In convertibility there is a national currency 1:1 to dollars in custody of the Central Bank.
Dollarization is the only real solution for Argentina, anything else would only mean that Argentina will at some point start printing pesos to satisfy the government's political needs. Argentina can not print dollars, so everybody will need to adjust and live within a budget. There was no dollarization with Cavallo. There was a one to one (peso to dollar) artificial parity but the government kept printing pesos and borrowing money to prop up the peso. The printing of money needs to stop in Argentina.
The IMF itself is against dollarization because it completely destroys national industry and, therefore, jobs. If dollarization happens in Argentina, it will become a trade-off between reduced inflation and unemployment.
@jorge, Agree with you, France devalued its currency (French franc) every 3 years between 1947 and 2000, with the euro, a beautiful discipline is back!
@@fern8580 Thanks for the information, I was not aware of that.
Dollarization is not a good solution for Argentina and even the IMF is against it, Google it. It will kill Argentinian domestic market producers, promote deindustrialization, increase unemployment and informal jobs and ruin the trade balance.
Fiscal and monetary discipline is absolutely necessary, don't get me wrong, but Brazil and Mexico left the hyperinflation crisis without resorting to dollarization and so can Argentina
Did you not listen to the segment? Argentina does not produce enough exports to bring in enough dollars to dollarization the economy
cavallo's convertibilidad was not dollarization, it was a mechanism to make Argentinian currency 1 to 1 with the dollar. The reason why the program failed is what got Argentina to this point.
I'm Argentinian and this confrontation againts the Police is sooo good to see, is music to my eyes. The ones that you are seeing there is people that is pay to go there, they didn't care abot our people. The thing is that before our Police couldn't do anything but now with our new Security Minister (Patricia Bullrich) YOU HAVE TO RESPECT THEM OR THEY MAKE YOU DO IT!!
He gave them hope. Let's give America hope. You know how.
Pleeeaaseee!! Ask someone else!! This economist hasn't mentioned so basic facts such as these last 2 months fiscal equilibrium was due to NON PAYMENT of the State's debt and the huge reduction of salaries and pensions of retired people. Either Milei fails and everything ends up totally destroyed , or he succeeds, and we end up in a country with average salaries of 300 dollars (the dreamland of neoliberals). He increased poverty 40% in just 2 months. And no mention about other issues such as the increase of violence, atack on women's and minorities' rights, defence of the dictatorship. etc.
Your comment is so bias and shows that you were for the government before Milei.
@@daya820 He is just stating facts... perhaps you have a biased thinking ?
DW wants milei to succeed. I know there are two sides two each story but the human side is not told at all. People are starving and sick in Argentina.
The former was one of the worst administrations since democracy was recovered. But this one is far worse. Of course I am biased in so far I have an egalitarian perspective (such as others have elitist ideologies or others). But what I pointed at are merely facts (i.e. the non payment of government debts - power bills, money owed to provinces, etc. ) which show that what the economist mentioned about fiscal equilibrium is completely artificial. And the fact that nothing is mentioned about the cultural aspects of this government is something that surprises me about DW (i.e. Milei`s verbal attacks on anyone who defends Keynes, or him saying a couple of weeks ago that he would piss in the mouth of those governors who wouldn´t approve his policies, or him giving a "Like" to a photoshopped photography were it looks like a child with the face of one of those governors was about to be molested by three men with the faces of three conspicuous pro-Milei journalists, are all examples that this is not just a horrible economic experience but a cultural and moral tragedy).
@@GraniteInTheFaceThat was already happening before. You can check out videos of protests last year. Milei actually doubled social assistance programmes ammounts and increased pensions compared to the last government although they are still terribly low.
This is the first balanced report on Argentina's new president and his journey to renew Argentina.
So far he has always been dismissed in the mass media as a right-wing extremist crackpot, which is absolutely not true.
Thank you very much for that.
Short answer: YES
Godspeed, Javier.
Basically Milei has let the market flow instead of keeping the subsidies and public expense high and as a reaction inflation has soared to its real amount. He needs more time to implement the rest of his policies (some of which Congress wont approve), but you can see a lot of signs of the economy getting better already, investment flowing, exports starting to rise, reserves growing, fiscal deficit under control.
As an example, when a thirsty organism needs water, and you see an Argentinian salesman telling you he has the “formula” to quit your thirst but he sends you to the hospital, he is not doing his job.
Well hospital got water too then ... it worked?
With Milei everything is getting better, sadly some people can't see it. We have a President with two Master's degrees in economic, he is brave and determinated.
Dollar before: Almost 2000
Milei: 1020
Risk country before: Almost 3000
Milei: 1200
Inflation before: Always rising
Milei: Down for two consecutives months
tf she smoking "argentinians are really the smartest people i've ever met in terms of financial literacy" then why tf are they in hyperinflation even until now 😂😂😂
She is saying they know how to live in a hyper inflation atmosphere, something you wouldn't understand if you haven't experienced it.
Your comprehension abilities are amazing, I am so jealous 😂
Yeah, ordinary people are not responsible for inflation. But Herrero's claim is equally ridiculous-- that Argentines "want" to be in economic pain, that they know it's the only way. It's not the only way, and deficits aren't the only things governments should care about. Governments should care about their own people first and foremost...
@@robertoclemente5512 at this point Argentina doesn't have a choice, the world bank won't lend them any more money until they can show an effective plan how they will recover. They are already way beyond the caring stage
"Literacy"
Doesnt mean wisdom or prudence or that they work well collectively. Just means they are educated in the terms etc. of economics more than most. Would probably make sense in a country that constantly is in crises related to money.
Gracias mi querido presidente❤
Yes, it's most interesting as well as relevant to see the two big S American countries now on totally different tracks economically, and their consequential development and outcomes in the next few years, if God mercifully allow relatively stable political environment.
meanwhile, US comes and buy your asset on cheap
DW always looks at the ones more noise makes, generally not at the silent working people. Does DW have any particular interest in doing this 🤔
I live in Miami and there is a large Argentinian community here and most of them support Milei. I studied economics and business management, in the case of Argentina, there is no magic bullet. Under the current policies, the inflation will come down but it will take its toll on the people, thus there is going to be more social unrest. Most Latin American countries have not adopted to the new world economy such as exportation of technology, they are still stuck in the exportation of commodities. A single company in Denmark such as NOVO NORDISK has a market cap of $600 billion or the semi conductor sector of small country such as Taiwan has a market cap of $630 billion, equal to the GDP of Argentina. Argentina has a potential for tourism and a retirement destination to bring in the badly needed foreign currency but they have not taken advantage of it the way they should have.
It's going to take Argentina even longer to undo the damage left by the spanish through the encomienda system, as well as the culture of corruption and graft that followed. Argentina was once one of the wealthiest countries on earth, yet the vast majority of people never experienced a shred of it when it was. I remain cautious about Milei. I think shock therapy can work, but there are many other things he needs to take into account, and I'm not sure if he's willing to do that.
can' really expect miracles. baby steps, he has the right philosophy
He just quoted the Dark Knight, LOL!!!
She didn’t mentioned that her slow measures approach has already been tested by liberal Macri’s government and didn’t work. Only drastic measures could work. Social programs are more effective now because they help directly without political parasitic intermediaries. The cuts are more in the thousands of government employees that did partisan political work the Peronist party and not the State. Milei is in the right track and the results are showing it!
Thank you argentina for saving my funny moustache uncle
America needs a Milei. No politicians want to cut spending anymore. We haven’t had a budget surplus since 2001.
I agree. Conservative circles sing the praises of Trump but he will not actually fix the economy and the Democrats certainly won't either. It seems things just have to get as bad as they are in Argentina before you can get a president who will do anything about it...
Cutting budgets don't get you votes
If you watch the Murdoch ‘Sky News' Australia, it's the best thing since the coming of Christ for half an hour without ever saying anything of substances. Just 'great, great, working' without ever saying the how, the why with any details of any kind.
They don’t do detail, it’s how gaslighting works.
Sky News Australia is like a garbage can for the journalism world
You should never waste a second on Sky News Australia
Within a year Milei's earth-shaking success will be large scale rioting across the country so bad he uses the military to try to crush the protestors, which makes more protestors come out and Milei at the height of his massive success flies out of Argentina with brief cases full of US dollars as Wall Street in that short time span buys most of Argentina's formerly state-owned gems for pennies on the dollar. At that point libertarians will cry the operation was a complete success however we lost the patient...
You don't wan to use the US dollar we're printing more and more of it ourselves.
Parallel market? You mean market rate true value market. I can't believe the corruption of the official rate was accepted for so long... Something is wrong with the people to think that is normal and allow it.
YES!!
Very impressive lady with some really good points
The austerity measures he's putting in place are nothing new. What's new is Argentianas are now self-hating enough to inflict it on themsleves rather than be coerced into it by the IMF. The result will be more pain for working people, proudly endorsed by investment bankers like the one interviewed, who care more about creditors getting paid and creating a profitable environment for foreign investors than about helping struggling families. There are many ways to tackle inflation. Why do people still believe austerity is the only one?
Lol
So what are these many measures? It's not austerity it's reality. To recover from drug addiction you have to get away from drugs and fix your life.
To fix inflation you must have stability and make it easy to do business. If you manage this you will produce more things and if at the same time you don't print more money it means you have more goods and services, but the same amount of money thus inflation will drop.
Social policies make no sense in a country with 90+ % corruption. It's better to lower taxes and let people figure it out themselves than to spend money where for every 100 dollars, 99 dollars are wasted on corruption.
Dollarising the Argentinian economy would be a mistake. The Federal Reserve Bank of America has steadily de-valued the Dollar since its inception in 1913, and continues to do so with reckless abandonment. So if you turn around the Argentinian economy by cutting deficits for good, why on Earth would you subject the monetary policy to a foreign nation that is fiscally irresponsible (Washington DC)?
Every country on earth has de-valued their currency in the modern era. MMT demands it.
Trade off is unemployment,but theres no alternative.the previous government more to blame for this mess.
I really don’t understand this, the numbers clearly indicate he’s doing terrible. Why is the interviewee so positive? Yes he cannot fix the economy in one year, of course, but inflation rate has gone up tremendously and economic growth is negative.
I’m no expert, but simply looking at the stats, I see no reason to be positive.
Inflation rates are going down, you've got your facts wrong. Also, former government printed 13% GDP just in 2023 and left bonds generating 2 billion monthly interest as well as minus 11 billion in Central Bank.
This whole content is saying, in other words: they have been poor, so they just need to be poorer and they will be fine.
What a weird and out of reality of the country's current state
At this point, the country just needs to stop moving in its direction . Even if you went backwards you would be moving in the right direction. Javier will lead them out of this mess
Into a diferent mess
??? This is like checking on a chronic smoker for 30 years with emphyzema three months after quitting to see if he's all better now.
Short answer yes. Long answer time will tell. The major risk? Will the population put up with short term pain for long term gain? History suggests no way.
Yeah that's what I'm worried about. Populations in general have issues with understanding delayed gratification.
They're like frogs in a teapot that is slowly being brought to a boil, but they don't realize it because their masters are feeding them crumbs to keep them happy as it is with every socialist/welfare state. Then Milei comes along and dumps cold water in the now boiling water that is killing the frog. This causes an eruption of steam that is going to BURN the frog badly, but it's only temporary. If the frog tolerates the cold water dump he'll soon be swimming happily and healed.
3:50 for people that actually understand economics and politics. Look at her smile when the interviewer asks her about "dallorizing the economy." She knows what we know. 😂😂😂
It ain’t happening?
She started lying from the start Argentina didn't dollarize they used a peg which is something entirely else than what Millei is proposing since dollarisation is not reversible.
P.S. I don't think dollarisation is a great solution, but a desperate solution. In the long term, it will probably be beneficial, but it also has its issues.
Ideally, you want your own currency so that you can tailor it to your own economy, but with such power also comes responsibility since it allows governments to print money and ruin a country.
Fantastic analysis by Ms. Herrero, also. Very impressive
What a hero. Go Milei! Don't let the statists discourage you!
Draconian to cut government spending lmao ?? The money that was taken from the people in the first place
Yes it is
Something I always thought was funny about Milei is he is against fiscal policy but also wants to dollarize the economy, and the dollar uses a lot of fiscal policy. Does make sense because the Fed is way better than Argentina's fed but still. kinda funny
Practically all i know about Argentina is the movie evita peron😅
He ripped the bandaid off, it's going to sting for a bit.
Hmmm.. I counted 14 pro-Milei, 3 ambiguous (but I think pro) before I hit one anti ( making a sarcastic comment about Murdoch media.)
Normally it is saturated with Russian trolls.. Looks legit. 😎
Inflation is coming down from 100% to 80% hahahaha this is not sustainable if this continues there might be even regime change.
Argentinian problem is argentinian economy handled by some few and powerful people and those are to blame government must break this chain ⛓️ and give freedom to economy
its not working at all. despite the tremendous monetary tightening, and the recession that it provokes.
Inflation is stabilised because Argentina are not buying. They have no money to buy. There are no demand on the goods and the goods prices appreciated not. That is not a good thing either.
The social impact has not been Miley’s government but the 20 years preceding his government with hyperinflation and 50% poverty! What would Germans do if the went through this? Hypocrites!
Germany did do hyperinflation, so we know how they handle it. They elected a dictator, which fixed their economy by militarizing, then they started the biggest war in human history.