Your channel is one of my favourite one UA-cam, but you should know that InVideo AI is currently being massively used to generate low-quality video content for UA-cam on TikTok, helping create toxic masculinity content and really anything that has a chance to make views. The more money they make, the more they'll be able to improve their platform and help ill-intentioned create viral low-quality content for views and money. Not the most ethical sponsor you've had... If you have financial difficulties, please ask for donations if better sponsors won't cut it, because this one is really making the world a worse place to live in. I still love your channel though ^^
Your channel is one of my favourite one UA-cam, but you should know that InVideo AI is currently being massively used to generate low-quality video content for UA-cam on TikTok, helping create toxic masculinity content and really anything that has a chance to make views. The more money they make, the more they'll be able to improve their platform and help ill-intentioned create viral low-quality content for views and money. Not the most ethical sponsor you've had... If you have financial difficulties, please ask for donations if better sponsors won't cut it, because this one is really making the world a worse place to live in. I still love your channel though ^^
@@moskbarto9436 i voted for him, i think that almost all that he is doing is good for us. You may not like his manners, but whatever. We need to get out of the disaster that years of senseless populism made to our beautiful country.
most of the video you were explaining the history of argentina and what milei wants to do. I didnt get the answer to the title of the question. All i got is "kind of, too early to tell". I didnt learn anything new.
Well, we are just barely one year into his term, we still have plenty of problems to solve and one mistake can cause a collapse, things will be much clearer in 2025 when midterms happen and whether or not Milei can get a large portion of the legislative power's seats, until then, we wait and see if the day to day improvements stay consistent
In this video, there are hardly any metrics or measures of anything about the economy or the quality of life in Argentina other than employment numbers and which departments are getting cut or consolidated. Didn't see measures if capital activity or foreign investment either. And interest rates and activity in the financial sector are not mentioned. Hoping a better analysis comes around.
Type "USD to ARS" into google, and look at the picture that pops up. If you don't understand it, have someone who finished high school explain it to you.
It is an extremely softball analysis that really implies EE is carrying water for Milei. The problem, generally, with mass privatization of what used to be government services--well, you only need to look at the USA for a case study. A country where everything is privatized, there's a cost of living crisis--and very little left to cut and nothing left to privatize.
4:00 To anyone wondering why from 2014 to 2016 the inflation chart reads "NO DATA" is because during the second term of Cristina Kirchner when the economy started going south she intervened the national statistics and census institute and basically hand drew whatever inflation figures she wanted. So nobody truly knows the damage done during those years or how much money was printed (her vice president owned one of the printing companies in charge of printing paper money....talk about conflict of interests) despite independent estimates. Thanks for putting that in the chart and not the "official" numbers
This past week the official vs black market USD/Peso rate went negative for the first time. That means that the official exchange rate and the blue dollar rates were just about the same. A year ago there was a huge gap. The treatment may be painful, but it is working.
Is it working? Key areas for developing a country are being devastated (e.g., science and technology), so just cherry-picking up one economical indicator is not enough to evaluate the whole program they are carrying out and its consequences
This is huge. The Peso could be floated now, meaning international investors could get their money out at equal value regardless of inflation. Look for an uptick in foreign direct investment.
@@santimda1990 The problem is that you dont understand how it works in South America. Science and Technology are not being "devastated", what happens is that the state had a huge number of people doing nothing and wasting money in some "institutions" that were doing "science". After "Ley Bases" passed in the parlament, several companies from inside and outside Argentina said they were going to do huge investments in the energy sector. Please explain what do you understand by "science and technology being devastated"
I am normally the most cynical person in the room in any given circumstances. But the fact that Milei openly campaigned effectively saying "bite down, this is going to hurt" and managed to win election is a very encouraging sign because it seems to indicate that the people of Argentina do not have their heads in a cloud and are willing to endure what they must to hopefully address their economic issues. Will this last long enough and will the reforms ultimately steer the country back into the right direction? I have no idea. But having an electorate who are at the very least trying to think and act like grown adults is the most important first step. I wouldn't mind importing that mindset here...
Actually no, he didn't. He said that all the cutting would be done on the political side and specifically said that certain subsidies wouldn't be touched,which he later did like within a month of gaining power. That doesn't mean that people felt totally cheated. I think everyone understands that politicians words mean nothing and they kinda knew a big cut was coming.
In the U.S. Trump voters somehow did't think his cuts will affect them. Or even if they do, they'll be satisfied losing even more as long as it hurts the libs.
I'm from New Zealand and I visited Argentina for my first time in October-November 2024. I was lucky to meet lots of friendly people, and to see lots of beautiful places. I wish Argentina's economy all the best.
Virtually every Argentinian I met when they arrived to Canada wanted to "work for the government". It's not something I ever heard from say Mexicans, Guatemalans or Brazilians. I sincerely think there's an entrepreneurial element which was evacuated from Argentinian culture over time and they need to rekindle with it
It worth noting people leaving Argentina to US and Canada are people with the means to do so whilst in Mexico and central america many cross for labor work and with little money to their name. They're also closer geographically.
@@rogeliovaldez6594and they know that working for private cooperations wil leave you drained and fucked, with not a cent to your name. In gov you still dont have a cent to your name, but you at least can work without mental or physical drainage after a year of working
Yeah, in the show of conan obrian in Hbo, he went there, and one dude was working at a radio station with like 15 listeners. It was from the government, I could see why they were broke
There was one in the first Peronism. An Argentinian political figure said that, after he was named director of a bank (state owned), when a Peronist approached him, it was to ask for a loan to set up a shop, when one of the opposition came, it was to ask for a job in the bank. Alas, Peronism got the same virus that the opposition had.
Lots of Canadians are taking the "work for the government" route as well since they pay close to the highest as well as have pension plans (something most private businesses have gotten away from). Canada is marching lock-step down the same tunnel as Argentina and our productivity is tanking as well.
As Colombian, I've visited Argentina twice and there's no other country in South America as rich and as beautiful. I cross my fingers all the time, because she deserves to shine as new silver again.
Agreed. As an Australian, I spent about a year living in Argentina, and I fell in love with the friendly spontaneous people, the nature, the food / wine, and the philosophical diatribes around every table. I also wish Argentina the best, perhaps this will finally be the end of her century-long economic "quilombo".
@chrisspencer6502 Zimbabwe did a lot of things to put themselves into poverty. Argentina is trying to undo almost a century of mismanagement, while Zimbabwe is still not doing anything.
@@chrisspencer6502 Zimbabwe seized lands from white farmers and put inexperienced black people... which caused an inflation and to "fight" it they just printed more money. What does this have to do with Argentina?
To create a robust economy, absolutely. But the hope is that by laying out the first steps and creating a culture of working towards that robust economy, the country undergoes such a seismic shift that future governments see the popularity in keeping going. That's the unfortunate thing about democracy, you generally only get three to six years to make that shift.
You can do a lot of work in a presidential term. Milei is not trying to make the country rich. He's trying to create a stable foundation that his successors can slowly build upon. Basically a reboot
but austerity generally has quick positive efects (mainly short term (scam) investement) the long-term stagnation is the problem. Plus using strong and stable Dollar in an economy lacking US assets would just make it infinettly worst.
@@cyrilmrazek6649 Other way around. Keynesianism is a quick fix. That's what Keynes himself said. It can be prolonged as long as the multiplier effect is maintained i.e., productivity growth. However, in Argentina this hasn't been the case for decades.
My main concern is how to survive all of these financial and political crisis, especially in light of the US political power scuffle. The government has really called things more difficult for its citizens, and we can't sit back and bear all the consequences of the bad governance.
I suggest that hiring a portfolio coach is a smart move and that in this case, patience is your best friend. I make a lot of investments and cannot afford to take the risk of doing it alone. Instead, since the rona outbreak began in late 2019, my portfolio has been maintained by a qualified advisor. I only need about $86k more to reach my one million dollar ROI goal
Yes true, I have been in touch with a brokerage Advisor. With an initial starting reserve of $75k, my advisor chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.
Lex Friedman has a whole hour of Milei talking about this. Interesting to listen to and has more numbers. He also talks about how the poverty rates were fudged before by subsidizing a low price on food, but not having any on the shelves to buy.
If you're getting your numbers and metrics from the president that is 100% incentivized to prove that his policy has positive results, you MAY get some biased numbers. Maybe, just saying
Yes. The useless tool of the left when they cause spiraled inflation, price control. It only leads to lack of stock. That and the ridiculous amount of energy subsidies. The poverty line the previous government was mantaining was abolute bullshit.
@@lucioarias4773 I see you live in the past, wages always lost against inflation for many many years, now that inflation is 2.7% wages are finally increasing more than inflation. And poverty raised only in the first months of the year, in July it went down to 49% and recent studies by UCA suggest it kept going down.
@Max_Power_ "suggest" good imagination Wages indeed lost against inflation for the last ten years and they keep doing it. Once again, sorry for breaking your bubble, politics fanboy. Don't trust the goverments, they will not help you
This channel is like the economic version of Real Life Lore. Majority of the video is unnecessary information and they take forever to get to the point. Short and sweet is the goal!
I agree, and also creators are heavily incentivized to make longer videos because of the number of ad windows you can fit in. I noticed it too with a lot of creators, that I felt like they were stalling for 8-10 minutes, and it turns out there's a good reason why that is
True. UA-cam's reward policies encourage these videos that take forever to get the point. And as we know in economics, incentives work (for better or worse). That's because TikTok is dominating.
30 years ago my country had to go through radical treatment as well. Despite many negative voices the nation knew it has to push through rough times to achive decent standard of living. We noticed visible changes after 10 years. After 30 we are feeling, that the gap between us and the West shrunk a lot. I wish you best Argentinians, you have everything to make your country a success. Greetings from Poland
How hard is it for foreigners to look up Milei's stance on dollarization? It really seems they just hear that word and then not the explanation afterwards about how, actually, the dollar won't replace the peso but rather the government will allow for free competition between currencies so you can use ANY currency, not just the dollar.
While that’s true, in reality people will eventually adopt the dollar. If you could choose to get paid in either pesos or dollars, what would you choose? If you were to rent out an apartment or a car, would you fix the rate in USD or pesos? Specially if you fear the next government will try to undo whatever Milei is doing now. They could just grab the national bank and start printing money, like it has happened for decades.
@@agme8045 The point is: you can't choose in what currency you will get paid. You have to take whatever employers want to pay, especially in a situation of high unemployment. Unless you are a very skilled worker. And here's my question: if you are an employer, why would you choose to pay in dollars if you can pay in pesos?? So in the end, poor workers will be paid in an inflationary currency, while many of their bills will be denominated in dollars.
well, the reason is that strong and stable curreancies ar exeptionally bad for exporting cheap agricultural goods like beef, coffe, and greins. So the cost of producing such comodities would became really uncompetitive.
@@alexalexan-d6j you have to consider, if everyone ditches the peso for purchases and payments etc, dollars will be on higher demand and more used and circulated, companies might end up with not enough pesos to pay their employees and will end up having to use dollars. just a thought. also could end with the same result but through different means.
I am reminded of Paul Keating who was a large part of the mastermind behind the foundation of modern Australian economics... he was willing to sacrifice himself, and his government, to set up a stable economic system that would avoid recession for 30 years... by having "a recession we had to have"
Keating implemented the Campbell Report which was commissioned by the former coalition government. In opposition they supported the reforms of the Hawke Keating government. Hawke was ideally positioned to negotiate with the unions so tariffs could be reduced and slowly removed.
Best of luck to Argentina. I am honestly respectful to Milei for admitting that this will hurt. Many politicians will try to gaslight people that things are the best ever when everyone is suffering.
But it will hurt either way, either making changes or keeping the status quo. The question is will there be general improvement, and the jury is still out as if this is better or just creating a different kind of corruption.
Regarding dollarization, Javier Milei does not actually want to dollarize. That is not the goal. Instead, what he wants to implement is a basket of currencies or a bimonetary system, where the peso will coexist with absolutely any other currency that people are willing to use and accept in exchange for what they want to sell. That’s the simple idea, and perhaps at some point, the government might decide to use the currency that is most widely used at the time to also accept tax payments in that currency. However, the peso will not cease to exist and will continue to be maintained, but it will no longer be issued, as has already begun to happen.
8:51 bruh, did you listen to his interview with Lex Friedman? Javier explicitly corrects Lex and says that he will allow currency competition not simply making the USD the official currency
Argentina had a significant increse on wages, after you account for inflation, 10% iirc. So yes, Argentina is doing very well, honestly i can see it becoming a major power in 20 years if Brazil doesn't do the same course correction.
Yeah a lot of people lost their jobs, jobs that were nothing but a useless burden to the national budget. Milei is doing what Argentina needed to get out of this economic disaster.
Wow. This is so one-sided. I've just finished watching another video on Argentina yesterday that showed how more than half the population is now living in poverty, with doubling numbers of people queuing for food where the govt support for the food banks has also just been slashed, people losing their homes, the ministry of education was just slashed, universities went from being free for all to zero subsidies making it impossible for most of the young generation to even finish high school properly, let alone get higher education. At this rate - it's quite possible the operation will succeed but the patient will die before we can assess it. I can see next year's EE video explaining how with no food and education a whole generation lost their ability to generate any meaningful GDP, how cash markets replace the official markets with all these taxes burdening people to death and how investors shy away from all that and completely ignoring the fact that a year ago they painted Milei as a great economic saviour...
I hope Argentina finds its prosperity. It seems like the best alternative to Europe in terms of culture and people, but I hesitate to move somewhere so unstable and stagnant.
Yeaaaaah. It's not great. If we talked about writting or music (that is not reggaeton, which burns my ears at this point, sorry), maybe I'd agree. But we have a certain, culturally ingrained "behavior" (for lack of a more accurate word) that I find a bit unbearable sometimes. I have also visited the outskirts of some main cities across the country. _It's not good_
@@sasa_dcf very interesting 🤔, from watching from afar in America 🇺🇸; I can’t tell a difference between Argentinian and Venezuelan mentality regarding everything; Milei made the difference thou.
If anything, Milei is hyper important as politicians shouldn't be taken seriously. They're public servants, he has a questionable vision but he takes action unlike the "yes-men" in suits who stagnate everything for approval
Really hope the "almost 50% of the population is in poverty" is worth it in the end. The conclusion is: this will end terribly or wonderfully, no in between. Push through it. Greetings from Brazil 🇧🇷🤝🇦🇷
What I got from this: Milei is far more educated on the subject matter than I thought, belied by his flamboyant nature Argentina is a really beautiful nation
@@kennethkho7165 I don't think they were--it was just a much smaller difference--, but even then Argentina was by far the most unequal even in basic things like schooling. It was an economy for the elite, so I wouldn't call it "prosperous".
@kennethkho7165 A bit of nuance : Argentina GDP was actually quite small, and the Argentinian economy did not compete with superpowers of the time. What it had was a relatively high standard of living and a good GDP per capita (emphasis on per capita). It's a bit like Ireland nowadays, it has the third GDP per capita in the word (discarding micronations), despite not being a heavyweight on the international scale.
I'm not sure where all of this information is coming from, I've studied argentinian historia and media history and there is no trace of a prosperous economy. Start of the XXth century in argentina was an economy for the elites THAT IS WHY ley saenz peña came to be for example
More money on the books by cutting social services and austerity. 53% record poverty brings down inflation with no money to buy decreases demand and increase supply.
He didn't cut education as it doesn't depend on the federal government, he only controls the budget assigned to universities which weren't reduced either, they started to ask for more money because they run on huge ammounts of deficit as they spend the money on parties, gender perspective talks and that sort of BS. Milei told them they needed to reduce their deficit and gave them the ability to make foreign students pay for studying there since they have always studied for free
It's not precise enough to call Milei's currency replacement plan dollarization. It's true that a close advisor to him was very pro dollarization and that became a big talking point during his campaign, but Milei's actual plan is currency competition. He wants the people to choose their medium of exchange, which will practically begin with USD considering it's already wide-spread use within the country (it also doesn't hurt that dollarization helps with his negotiations with the incoming Trump administration). But he is purposely not closing the door on other currencies, just on an Argentine state-issued one.
Its good to see a mixture of policy changes embracing privatisation and capitalist policies together. I've always said a coherent society needs socialist and capitalist policy, ie a centrist approach.
54% poverty rate, great success. Look I Live in a country that went all in austerity in early 10's. They were only good to increase debt, stagnate the economy and lower the standards of living. It hurt and took us nowhere. The IMF is the first to admit that austerity doesn't work and still people promote this as magical solution?
It's currently at 41%. Compared to 54% last year, so I'd say that's a success. Also poverty line is a bit weird here. My family was put in the poverty group (years ago) because we didn't have a computer at home (for some reason you were technically poor if your household didnt own one), but we're farmers, no need for computers and we got land worth over a million dollars hahaha
There is a mistake in the video. Milei isn't trying to dollarize the country itself but to establish a currency competition following Hayek's "guidelines."
Statists are terrified, Milei succeeding by cutting down the state will encourage other countries to demand their own chainsaw, pointing at Argentina and saying "it works" This is a good thing.
It sounds like the opposite tbh, he didn’t go into the fact poverty and unemployment has gone up. It seems like he’s trying to paint things as better than they actually are
It should also be mentioned that a lot of unrest in Argentinian society as of today is not actually due to the gutting of government agencies and extreme subsidies, but the absolute hatred Milei and his officials show for the working class. The day he entered office, he immediately passed a legislation to destroy most of workers' rights (think legalizing labor without any security or benefits and removing compensation to fired employees) and also removing healthcare measures and pay to retired people who paid their dues for 40 years to now be basically unable to survive on their own. All this paired with brutal repression in the streets and tax breaks for the rich and corrupt politicians and businessmen. Things would not be so bad if there were only macroeconomic changes. The loss of rights and means to defend them is the worse battle, as those things are what the people actually need to hold up their standards of living. Saludos desde Argentina.
Great suammry of the situation of argentina. I live in Uruguay and here the media is really polarized (as in Argentina), so is nice to see an "outside view"
There was a similar experiment in Europe, albeit on a much smaller scale: Montenegro gave up its currency after years of hyperinflation, switching to the Deutsche Mark in 2001 and the Euro one year later, without being a member of the Eurozone. It worked very well for them, and they will join the EU soon, probably next year. So good luck Millei and Argentina! Te deseo todo lo mejor!
It reminds me of what Poland did after the fall of communism in 1989 (minus dollarization, but Polish currency was tied to a dollar at a government-mandated rate for a couple of years). I hope it will work as well in Argentina.
What a beautiful country ! Hope they recover well and strong. As an Indian, the point about ‘brain drain’ to the government resonated. For decades, the government was the premier employment destination for well educated Indians. Today there are many options, but yet for a lot of young folks, especially those outside big cities a government job is highly sought after.
This explanation barely addresses any kind of actual critique of Mileis policies from an alternate economic perspective. Lazy. You need to talk to professor Richard Wolff and stop assuming “economics” is thd same as “neoliberal economic theory” because shock doctrine politics have a notorious history people should look up and watch Naomi Karina the shock doctrine
Richard Wolff is a Marxist ideologue. It was those type of policies that got Argentina into the mess its in. Also, I believe you are referring to Naomi KLEIN who wrote the Shock Doctrine. Also, my experience has been that every person who uses the term "neo-liberal" tend to come from the FAR LEFT. I am from the center-left (between a social liberal and social democrat). You need to allow the private sector to drive the economy but you can then use progressive tax policy to provide basic services and help for the poor. But having the government run large sectors of the economy and subsidize energy prices is a HUGH mistake. These will inhibit economic growth. I do think dollarizing the economy is generally a bad idea though. Having control of monetary policy can be helpful in combating deflation and incentivizing economic growth during a downturn. However, considering how abused Argentinian monetary policy was in the past I GET why some advocate for it.
Feel free to outline how marxian economy would've dealt with the situation in Argentina before this guy took office. Seriously, I'm curious, not trying to antagonize you (at least not too much). Though I will say that I think different situations require approaches of different directions and perhaps intensity, and just by the name of it marxian economy and pre-milei argentina doesn't sound like a match made in heaven. Feel free to be extensive and detailed.
13 mins of video and not a single comparison between the KPIs a year ago and today. The reason is simple: You could not find a single KPI that is worse, quite the oposite, every number is showing that Argentina is recovering and starting to grow again.
Real stats: One year of Milei: - Inflation slashed from 25.5% monthly to 2.7%. - Poverty rate demolished from 54.9% to 41.7% (expected for December, UCA) - From 2.7% primary deficit to 1.7% surplus. - Dollar blue and official rate converging. - Country risk obliterated. - Dollar deposits and savings soaring - Real wages rising
Bro, the prices for everything are out of control now. It has thrown more people into poverty, killed their tourism and not brought any significant investment into the country. Their peso is still falling off a cliff against the USA dollar. The president is now taking out more loans in the billions against the natural resources of the country. He pimped the country out, lol.
KPI's aren't exactly a good mesure for the results of spending cuts. I am anoyed because there was nothing on the externalities of the spending cut's. Are the improvements enough to make up for fewer univeristy degrees, more malnourished children, more drugs, and the spread of criminal gangs?
The problem with mass politics is that once an economy has become broken enough it is impossible to reverse course since the people won't vote for harsh but necessary change.
I hope this works for Argentina, beautiful country with amazing people. It hurts knowing they are going through a painful time but God willing they will come out the other side far better.
Makes perfect sense. They have spent far more than they produce and have been living off debt which kept increasing while income has been declining. You can only continue this way if your fiscal foundation is solid ie institutions, national currency, industries, credit, and investors. Of course to avoid going off an economic cliff immediately and harsh choices must be made of which the short term effect will be painful and scary. Minimum a few years at very best to actually FEEL the positive benefits.
The real issue with Milei style “libertarian” policies is that the people who get fucked over and have to experience the pain from these economic reforms are always the people already feeling the most pain from the system.
The ones who feel it are those who don’t actually produce value to the economy commensurate with their income. That is the problem with government involvement in an economy. The signals sent to producers and consumers via pricing are distorted, resulting in overall reduction in economic output.
I’m sure your beliefs scream this at you, but it’s not at all necessarily true or true in this case (especially in the way you put it). The people feeling the most pain under the old system were whatever people were paying the most taxes and adding the most value while getting the least back in benefits. The people getting the most pain from the reforms are the people who had sinecures, plush government positions, had stakes in protected industries, etc. The people we all should be concerned most about are those dependent on government aid due to ACTUAL NEED. They were presumably getting much relief under the welfare state. Where’s the evidence those people are getting cutoff without being able to find a way to replace their sustaining resources? Generally, the press LOVES to push anecdotes about poor folks losing this or that benefit while ignoring any statistical evidence that most of them are actually doing better. This was a common press piece ploy during the Clinton era welfare reforms when he eventually signed balanced budgets. It gets ratings, raises anger, and infuriates the collectivist souls, but it’s usually a true story spreading a very misleading message. Whenever there is change, it leads to the cheese getting moved. Those least able to adapt can suffer no matter how much better the new change will be for them once they adapt.
It's not true at all. Among those who suffer the most are all the clients who used to be propped up by subsidies (states employees, protected industries,...)
@@mistermercury8696 Inflation and devaluation are the worst enemies of the poor, and as of now, these problems have at large disappeared, and you can clearly see the benefits of this, by the fact that poverty has finally started to decrease significantly
I think one of the biggest positive signs for me is the drop in inflation. It is incredible how much it has gone down compared to last year. Still, there is a long way to go and I hope it turns out well.
De qué sirve que la inflación baje si sólo es porque los precios ya son tan altos que la gente no puede comprar? Esa es la razón de la baja de la inflación, el silencio de los cementerios.
@@GrandChessboard me equivoqué, quise decir inflación en lugar de precios. Gracias por la corrección. Y si, Argentina va derecho al colapso con ese rumbo.
@@hernanrh Yes, losing all those tourist dollars now. Taking out a 2 billion dollars in loans from his buddies at the World Bank against the natural resources. Scary for the people there. I used to visit but too expensive now. Uruguay does not seem too expensive compared to Argentina now.
@@GrandChessboardAfrican wages? The average income is 1k dollars. It’s definitely not amazing, but it’s not as terrible as y’all make it seem. You can’t have European wages, without European prices. Things are slowly balancing out, some prices are going down, salaries are slowly but steadily increasing. As the government continues deregulate Argentina, and new competitors arrive into the country and local businesses become more efficient, the prices situation will improve.
just so you know, this is not what’s happening. The gov is trying first to stabilize the currency, then stop the ‘cepo’ (in argentina you can only legally buy usd from the state, in a fixed price they use so they don’t have runs), and then probably the dolarization is not gonna happen, it’s just gonna be free circulation of currencies, euro, yuan, usd, bitcoin even. You’ll be able to pay whatever in whatever you want.
All those different currencies would be a recipe for chaos, which may be what this government wants. Then when people protest, the government unleashes the police and military, and justifies their brutality on the grounds of restoring peace and order.
Argentina was never a wealthy country, we had borrowed capital from Europe for most of our history. The taking credit then paying then taking credit and paying and so on has been a crucial part of pur economic history, it all essentially comes from the way that the oligarchy of old decided to develop the economy. Instead of giving land to farmers so that they would work it for generations they rented it for some years and made a quick profit, good for them not for the future development
My counterargument is based on the wealth of the common Argentinian. Because in Argentine culture, having beef is considered normal. Grilling big chunks of beef was almost a pastime as important as football. And Argentinians were wealthy enough to afford it. For almost all other countries, beef is a very expensive protein. But Argentina’s wealth afforded even the poor to eat beef. At least it used to.
@@Troggedemic Yeah thats because its produced in here, we dont pay import price for it. Consider wine as well, cheap wine here is a medium price outside, because its made here
You don't get borrowing at all, and neither is this channel. Wealth of a country is economic potential. Money is just a measurement entity. The value of money is non-existent. Imagine being stranded on a lonely island without food, but with millions of dollars. Would you consider yourself rich?
@@GrouEEf exactly my point, we weren't wealthy because the capital was from Europe. Our telephone infrastructure was owned by Spain if I'm not mistaken, trains were British, electricity was Spanish and more key infrastructure was not from an argentinian capital We were never wealthy because everything we owned was on loan, and if you don't own anything how could you decide to exploit the resources you have
When I was holidaying in Argentina a few years ago, I was very surprised to see so many locals partying at bars and clubs late into the early morning on a typical Tuesday night. I was wondering doesn't anyone here need to work next next day? I could not comprehend what I was experiencing.
Another thing Milie have been doing throughout the year has been systematically finding, revealing and dismantling corruption and over expending of the past government, that is am major contribution to his popularity
Actually, Milei is aiming for something more ambitious than dollarization, he wants free competition of currencies, so that the people choose what currency they want to use.
I liked his ideas but was put off by his cartoonish behavior. Still voted for him because the alternative was a continuation of the same kind of government that lead us to ruin. The man has done more in a year than others have done in two terms, I stand by my vote. Although sometimes I wish he wasn't so belligerent in unnecessary situations or against people who don't really matter but give fuel to the press to write bad things about his character instead of looking at his policies.
Fact Check at minute 8:05. Milei doesn't propose dollarization; it proposes that the economic agents choose what currency they wish. What he said is that the Argentines currently seems to have a preference for the US Dollar.
Seeing a nation with so much to give, with so much potential be reduced to such a state is breaking my heart if I'm honest. I'll admit that I've little to offer by prayers, and the best of wishes for a prosperous future. Viva Argentina! 💙🤍
That's why Argentina has one of the highest amount of psychologists per capita in the world due to the disillusion they feel with how Argentina was handled by previous Governments though they are very resilient by nature and hopefully Javier Milei and the first libertarian party in the world can restore Argentina to its once prosperous glory! GOD BLESS VIVA LA LIBERTAD🦁
The prices didn't skyrocketed, they grew up after Milei took off the subsidies that keep the prices artificially cheap. But the most important thing is that he erased hundreds and hundreds from stupid regulations and complicated taxes that only obstruct the economy to work properly. Imagine to have in your country a "de-regulation" ministry, that's crazy, imagine the amount of obstacles that Argentina had and still has some.
6:50 the Argentina Great power theory is just a myth. Having a large gdp per capita doesn't mean being a great power. Even it ignored all the systematic problems. So stop repeating pseudoscientific terms.
@AeROweasel lo bajó al inicio y lo subió después de darse cuenta de que era necesario. Recién ahora lo bajó un poquito, y eso es algo que no debería hacer si espera que su país no se dedique a vender palos, piedras y fruta.
If Argentina starts using the United States dollar as its currency, would this trend continue to other nations? How much of a global currency would the United States dollar become?
Yes. I think a lot of videos on this channel are decent, but the mark has been missed by a mile here. There isn’t much substance actually presented, there is a severe lack of understanding from a quality of life perspective (52% of people are now living in poverty) and like you say there hasn’t been enough time to watch, analyse and comment so confidently on what has happened. Could this actually work? Maybe. Are we in a position to say it is working right now? No. It is still hurting the Argentinian people massively. Hoping the next video is better than this one
@@5vxz Anything can work if you put infinite timeframe. Can Milei's libertarian agenda work? If the timeframe is large enough, yes. Will lots of people die of hunger and suffer miserably for that to be achieved? Absolutely.
You could still look at development and ask yourself "is the foundation of the economy improving or getting worse?" Kinda hard to say because I didn't find anything on investment and Capital flows, but the UNICEF data on child malnourishment sugests that even if milei rebuilds confidence, that might not solve the problem if other problems get bad enough.
The idea of spending less than you bring in is EXTREMELY complex. I just can't comprehend it. Perhaps you should do a ten chapter video on how this can be accomplished.
![Lp. Сердце Вселенной #60 РОЖДЕНИЕ ЛОЛОЛОШКИ [Финал] • Майнкрафт](http://i.ytimg.com/vi/YoR0pAV9FVQ/mqdefault.jpg)
Go to invideo.io/i/EconomicsExplained and use my code ECONOMICSEXPLAINED50 to get twice the number of video generation credits in your first month.
i'd buy the software but not lease it, don't like their terms
Your channel is one of my favourite one UA-cam, but you should know that InVideo AI is currently being massively used to generate low-quality video content for UA-cam on TikTok, helping create toxic masculinity content and really anything that has a chance to make views. The more money they make, the more they'll be able to improve their platform and help ill-intentioned create viral low-quality content for views and money. Not the most ethical sponsor you've had... If you have financial difficulties, please ask for donations if better sponsors won't cut it, because this one is really making the world a worse place to live in. I still love your channel though ^^
wow, a new and innovative way to fill the tubes with slop, yay.
NO AI
Your channel is one of my favourite one UA-cam, but you should know that InVideo AI is currently being massively used to generate low-quality video content for UA-cam on TikTok, helping create toxic masculinity content and really anything that has a chance to make views. The more money they make, the more they'll be able to improve their platform and help ill-intentioned create viral low-quality content for views and money. Not the most ethical sponsor you've had... If you have financial difficulties, please ask for donations if better sponsors won't cut it, because this one is really making the world a worse place to live in. I still love your channel though ^^
I really hope the best for Argentina. Greetings from Argentina lol
What's your opinion on Milei?
trust me, for as long as he's your leader, you will be fine.
@@moskbarto9436 i voted for him, i think that almost all that he is doing is good for us. You may not like his manners, but whatever. We need to get out of the disaster that years of senseless populism made to our beautiful country.
I really hope the best for Argentina. Greetings from Greece lol
LOL
most of the video you were explaining the history of argentina and what milei wants to do. I didnt get the answer to the title of the question. All i got is "kind of, too early to tell". I didnt learn anything new.
All their gold is now in the City of London, and being rented out.🪙
This is a pop economics channel
Most of his videos don't provide any meaningful insights
It's great for watching for fun after having a long day tho
Well, we are just barely one year into his term, we still have plenty of problems to solve and one mistake can cause a collapse, things will be much clearer in 2025 when midterms happen and whether or not Milei can get a large portion of the legislative power's seats, until then, we wait and see if the day to day improvements stay consistent
Anarcho capitalism is unregulated fascist crony capitalism. Good luck Argentina 😢
Not a well made video.
In this video, there are hardly any metrics or measures of anything about the economy or the quality of life in Argentina other than employment numbers and which departments are getting cut or consolidated. Didn't see measures if capital activity or foreign investment either. And interest rates and activity in the financial sector are not mentioned. Hoping a better analysis comes around.
This video is only neoliberalism propaganda.
Type "USD to ARS" into google, and look at the picture that pops up.
If you don't understand it, have someone who finished high school explain it to you.
It is an extremely softball analysis that really implies EE is carrying water for Milei. The problem, generally, with mass privatization of what used to be government services--well, you only need to look at the USA for a case study. A country where everything is privatized, there's a cost of living crisis--and very little left to cut and nothing left to privatize.
Your first comment on this channel?
Likely an inauthentic bot account. Probably was written by ChatGPT
And how Margaret Thatcher (and later the tories) turned the UK into a third world country. I still fail to see why this is any different.
the answer starts from 10:29
that will save you 10 mins
THANKS!!!
Bless you
Thank you
Thank you
Thank you !
4:00 To anyone wondering why from 2014 to 2016 the inflation chart reads "NO DATA" is because during the second term of Cristina Kirchner when the economy started going south she intervened the national statistics and census institute and basically hand drew whatever inflation figures she wanted. So nobody truly knows the damage done during those years or how much money was printed (her vice president owned one of the printing companies in charge of printing paper money....talk about conflict of interests) despite independent estimates.
Thanks for putting that in the chart and not the "official" numbers
AGUANTE LA CRISTI PÁ, VIVA PERON
@@Fepers24 Cerra el qlo kuka, no van a volver nunca más
@@Fepers24ok sigan pasando hambre con la misma gente de siempre .
@@Fepers24🤡
@@Fepers24 Cristina esta presa por chorra, boludín.
This past week the official vs black market USD/Peso rate went negative for the first time. That means that the official exchange rate and the blue dollar rates were just about the same. A year ago there was a huge gap. The treatment may be painful, but it is working.
Is it working? Key areas for developing a country are being devastated (e.g., science and technology), so just cherry-picking up one economical indicator is not enough to evaluate the whole program they are carrying out and its consequences
If I'm not wrong the gap was of about 149%
This is huge. The Peso could be floated now, meaning international investors could get their money out at equal value regardless of inflation. Look for an uptick in foreign direct investment.
@@santimda1990 Yeah that is true, but the key thing was to stabilize the peso first. Outlook on 2025 looks very promising for the country.
@@santimda1990
The problem is that you dont understand how it works in South America.
Science and Technology are not being "devastated", what happens is that the state had a huge number of people doing nothing and wasting money in some "institutions" that were doing "science".
After "Ley Bases" passed in the parlament, several companies from inside and outside Argentina said they were going to do huge investments in the energy sector.
Please explain what do you understand by "science and technology being devastated"
I am normally the most cynical person in the room in any given circumstances. But the fact that Milei openly campaigned effectively saying "bite down, this is going to hurt" and managed to win election is a very encouraging sign because it seems to indicate that the people of Argentina do not have their heads in a cloud and are willing to endure what they must to hopefully address their economic issues. Will this last long enough and will the reforms ultimately steer the country back into the right direction? I have no idea. But having an electorate who are at the very least trying to think and act like grown adults is the most important first step. I wouldn't mind importing that mindset here...
Actually no, he didn't. He said that all the cutting would be done on the political side and specifically said that certain subsidies wouldn't be touched,which he later did like within a month of gaining power.
That doesn't mean that people felt totally cheated. I think everyone understands that politicians words mean nothing and they kinda knew a big cut was coming.
trump supporters
@@12nites lol
In the U.S. Trump voters somehow did't think his cuts will affect them. Or even if they do, they'll be satisfied losing even more as long as it hurts the libs.
@zenastronomy TDS is real. Millei cannot cure that problem. Sigh.
I'm from New Zealand and I visited Argentina for my first time in October-November 2024. I was lucky to meet lots of friendly people, and to see lots of beautiful places. I wish Argentina's economy all the best.
Nice people are always welcome here :)
All the best for our neighbor Argentina! Greetings from Brazil.
Virtually every Argentinian I met when they arrived to Canada wanted to "work for the government". It's not something I ever heard from say Mexicans, Guatemalans or Brazilians. I sincerely think there's an entrepreneurial element which was evacuated from Argentinian culture over time and they need to rekindle with it
It worth noting people leaving Argentina to US and Canada are people with the means to do so whilst in Mexico and central america many cross for labor work and with little money to their name. They're also closer geographically.
@@rogeliovaldez6594and they know that working for private cooperations wil leave you drained and fucked, with not a cent to your name.
In gov you still dont have a cent to your name, but you at least can work without mental or physical drainage after a year of working
Yeah, in the show of conan obrian in Hbo, he went there, and one dude was working at a radio station with like 15 listeners. It was from the government, I could see why they were broke
There was one in the first Peronism. An Argentinian political figure said that, after he was named director of a bank (state owned), when a Peronist approached him, it was to ask for a loan to set up a shop, when one of the opposition came, it was to ask for a job in the bank. Alas, Peronism got the same virus that the opposition had.
Lots of Canadians are taking the "work for the government" route as well since they pay close to the highest as well as have pension plans (something most private businesses have gotten away from). Canada is marching lock-step down the same tunnel as Argentina and our productivity is tanking as well.
When I'm in a shitty sponsor competition and my opponent is Economics Explained
As Colombian, I've visited Argentina twice and there's no other country in South America as rich and as beautiful. I cross my fingers all the time, because she deserves to shine as new silver again.
Argentina is more than Buenos Ayres.
i believe the beautiful part but rich nah lil bro💀💀💀💀
@@papuchan6026i think it means rich on resources
Agreed. As an Australian, I spent about a year living in Argentina, and I fell in love with the friendly spontaneous people, the nature, the food / wine, and the philosophical diatribes around every table. I also wish Argentina the best, perhaps this will finally be the end of her century-long economic "quilombo".
Muchas gracias 🇦🇷🤝🇨🇴
Whatever you may think of Milei, hope the economy improves for most people in Argentina.
But it’s not going to since this experiment has been tried.
You’re looking at the Latin American Zimbabwe 🇿🇼 thrive.
economy improves so early is not a good sign.
Yeah, Switzerland prices with African wages. Things are going great for them.
@chrisspencer6502 Zimbabwe did a lot of things to put themselves into poverty. Argentina is trying to undo almost a century of mismanagement, while Zimbabwe is still not doing anything.
@@chrisspencer6502 Zimbabwe seized lands from white farmers and put inexperienced black people... which caused an inflation and to "fight" it they just printed more money. What does this have to do with Argentina?
I think we all know it takes generations of good policy. A year only is asking ridiculous speed of change.
To create a robust economy, absolutely. But the hope is that by laying out the first steps and creating a culture of working towards that robust economy, the country undergoes such a seismic shift that future governments see the popularity in keeping going. That's the unfortunate thing about democracy, you generally only get three to six years to make that shift.
I think it can be quicker. Keeping it takes longer though.
You can do a lot of work in a presidential term. Milei is not trying to make the country rich. He's trying to create a stable foundation that his successors can slowly build upon. Basically a reboot
but austerity generally has quick positive efects (mainly short term (scam) investement) the long-term stagnation is the problem. Plus using strong and stable Dollar in an economy lacking US assets would just make it infinettly worst.
@@cyrilmrazek6649 Other way around. Keynesianism is a quick fix. That's what Keynes himself said. It can be prolonged as long as the multiplier effect is maintained i.e., productivity growth. However, in Argentina this hasn't been the case for decades.
I'm rooting for Argentina! A beautiful country with enormous potential.
Hugs from Brazil
ooooof brazil is getting pounded by lula, good luck next year
My main concern is how to survive all of these financial and political crisis, especially in light of the US political power scuffle. The government has really called things more difficult for its citizens, and we can't sit back and bear all the consequences of the bad governance.
I suggest that hiring a portfolio coach is a smart move and that in this case, patience is your best friend. I make a lot of investments and cannot afford to take the risk of doing it alone. Instead, since the rona outbreak began in late 2019, my portfolio has been maintained by a qualified advisor. I only need about $86k more to reach my one million dollar ROI goal
Yes true, I have been in touch with a brokerage Advisor. With an initial starting reserve of $75k, my advisor chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.
Please can you leave the info of your Investment advisor here? I'm in dire need for one
she's mostly on Telegrams, using the user name
tracycool02, that's it
Those images of Argentina opened my eyes to how incredibly beautiful of a country it is!
if modern day's Caligula (aka Milei) countinues to be in office there won't be much of the coutry to see.
Lex Friedman has a whole hour of Milei talking about this. Interesting to listen to and has more numbers.
He also talks about how the poverty rates were fudged before by subsidizing a low price on food, but not having any on the shelves to buy.
If you're getting your numbers and metrics from the president that is 100% incentivized to prove that his policy has positive results, you MAY get some biased numbers. Maybe, just saying
Yes. The useless tool of the left when they cause spiraled inflation, price control. It only leads to lack of stock. That and the ridiculous amount of energy subsidies. The poverty line the previous government was mantaining was abolute bullshit.
I think Argentina ist the most interesting Makro-economic Case-study in this decade
From South Africa good luck to any Argentineans here, I would run through a brick wall to have a leader like Milei here
poverty is increasing and salaries going down, so... i dont recommend it to you
@@lucioarias4773 Poverty is going down and real wages are increasing for the first time in years.
@Max_Power_ no man is not. Poverty raised up by 12% this year and wages are losing with the inflation. Sorry to break your fanboy bubble
@@lucioarias4773 I see you live in the past, wages always lost against inflation for many many years, now that inflation is 2.7% wages are finally increasing more than inflation.
And poverty raised only in the first months of the year, in July it went down to 49% and recent studies by UCA suggest it kept going down.
@Max_Power_ "suggest" good imagination
Wages indeed lost against inflation for the last ten years and they keep doing it. Once again, sorry for breaking your bubble, politics fanboy. Don't trust the goverments, they will not help you
This channel is like the economic version of Real Life Lore. Majority of the video is unnecessary information and they take forever to get to the point.
Short and sweet is the goal!
Let me summarize 90% of RLL videos - that country is f*cked because they don't have water.
I agree, and also creators are heavily incentivized to make longer videos because of the number of ad windows you can fit in. I noticed it too with a lot of creators, that I felt like they were stalling for 8-10 minutes, and it turns out there's a good reason why that is
And when they get to the point it's extremely shallow.
True. UA-cam's reward policies encourage these videos that take forever to get the point. And as we know in economics, incentives work (for better or worse). That's because TikTok is dominating.
I just hate listening to an Australian accent. Puts me to sleep and I can't treat it as serious rhetoric.
I hope everything goes great for argentina and its people! Greetings form La Matanza.
Saludos desde lafe pa
Saludos desde Gangbang, Texas
Greetings from Rafael Castillo
Donde queda fuerte apache en esta situacion?
Greetings from Ciervo Cojido, Chaco👋🏿
30 years ago my country had to go through radical treatment as well. Despite many negative voices the nation knew it has to push through rough times to achive decent standard of living. We noticed visible changes after 10 years. After 30 we are feeling, that the gap between us and the West shrunk a lot. I wish you best Argentinians, you have everything to make your country a success. Greetings from Poland
Thank you so much. Poland is such a beautiful country too, we have a lot and polish descendants here:)
I think Milei is God send for Argentina. Every struggling country needs a Javier Milei.
How hard is it for foreigners to look up Milei's stance on dollarization? It really seems they just hear that word and then not the explanation afterwards about how, actually, the dollar won't replace the peso but rather the government will allow for free competition between currencies so you can use ANY currency, not just the dollar.
While that’s true, in reality people will eventually adopt the dollar. If you could choose to get paid in either pesos or dollars, what would you choose? If you were to rent out an apartment or a car, would you fix the rate in USD or pesos? Specially if you fear the next government will try to undo whatever Milei is doing now. They could just grab the national bank and start printing money, like it has happened for decades.
@@agme8045 The point is: you can't choose in what currency you will get paid. You have to take whatever employers want to pay, especially in a situation of high unemployment. Unless you are a very skilled worker. And here's my question: if you are an employer, why would you choose to pay in dollars if you can pay in pesos?? So in the end, poor workers will be paid in an inflationary currency, while many of their bills will be denominated in dollars.
@@alexalexan-d6j Millions of poor being screwed by the economic system is perfect for a demagogue. And those types don't really fix anything.
well, the reason is that strong and stable curreancies ar exeptionally bad for exporting cheap agricultural goods like beef, coffe, and greins. So the cost of producing such comodities would became really uncompetitive.
@@alexalexan-d6j you have to consider, if everyone ditches the peso for purchases and payments etc, dollars will be on higher demand and more used and circulated, companies might end up with not enough pesos to pay their employees and will end up having to use dollars. just a thought. also could end with the same result but through different means.
I am reminded of Paul Keating who was a large part of the mastermind behind the foundation of modern Australian economics... he was willing to sacrifice himself, and his government, to set up a stable economic system that would avoid recession for 30 years... by having "a recession we had to have"
🇦🇺
My favourite Treasurer/PM
Von Mises was an Austrian.
Mad Max WAS Australian, though!
Keating implemented the Campbell Report which was commissioned by the former coalition government. In opposition they supported the reforms of the Hawke Keating government. Hawke was ideally positioned to negotiate with the unions so tariffs could be reduced and slowly removed.
Best of luck to Argentina. I am honestly respectful to Milei for admitting that this will hurt. Many politicians will try to gaslight people that things are the best ever when everyone is suffering.
But it will hurt either way, either making changes or keeping the status quo.
The question is will there be general improvement, and the jury is still out as if this is better or just creating a different kind of corruption.
It will only hurt the average person, but it will benefit the rich while doing it. He only cares about the rich.
Regarding dollarization, Javier Milei does not actually want to dollarize. That is not the goal. Instead, what he wants to implement is a basket of currencies or a bimonetary system, where the peso will coexist with absolutely any other currency that people are willing to use and accept in exchange for what they want to sell. That’s the simple idea, and perhaps at some point, the government might decide to use the currency that is most widely used at the time to also accept tax payments in that currency. However, the peso will not cease to exist and will continue to be maintained, but it will no longer be issued, as has already begun to happen.
That is a great idea. That will basically end inflation.
@LobotomizeCommies10 yes, that's the idea. If there is no more currency being made, there is no more inflation.
Bimonetarism was Bullrich's proposal, Milei wanted complete freedom of foreign exchange. Close enough though. Saludos desde tucuman capo
So, do you think it is a good idea to buy argentinian peso right now and then sell/exchange it in the future?
@@charlie_jackson8291 Seeing how it developed lately, I would say so.
8:51 bruh, did you listen to his interview with Lex Friedman? Javier explicitly corrects Lex and says that he will allow currency competition not simply making the USD the official currency
Argentina a beutiful country with beautyful people, i hope the best for them, greating from Buenos Aires, Avellaneda City.
Se decia hermoso solo el pibe jsjsjs, saludos desde tucuman pa
Fingers crossed for Argentina’s success. It would be really nice to finally see miltonian economics applied at scale.
No it wouldn't, because Milton is a moron
Already happened in Chile in the 70s and today Chile is the wealthiest and most sought after immigration destination in south America
@@Bolognabeef Chile was on the brink of civil war in late 2019. Didn't happen because of the covid.
Way to redefine Keynesian economic policy ....... which was all about government spending more 😂
Guayana and Uruguay are wealthier @@Bolognabeef
Argentina had a significant increse on wages, after you account for inflation, 10% iirc. So yes, Argentina is doing very well, honestly i can see it becoming a major power in 20 years if Brazil doesn't do the same course correction.
Yeah a lot of people lost their jobs, jobs that were nothing but a useless burden to the national budget. Milei is doing what Argentina needed to get out of this economic disaster.
He did exactly what he said he was going to do. Argentina has a surplus for the first time in over 100 years..USA take notes
you cannot reasonably expect me to keep watching after a generative AI advertisement.
He can 😎☝️
Wow. This is so one-sided. I've just finished watching another video on Argentina yesterday that showed how more than half the population is now living in poverty, with doubling numbers of people queuing for food where the govt support for the food banks has also just been slashed, people losing their homes, the ministry of education was just slashed, universities went from being free for all to zero subsidies making it impossible for most of the young generation to even finish high school properly, let alone get higher education. At this rate - it's quite possible the operation will succeed but the patient will die before we can assess it. I can see next year's EE video explaining how with no food and education a whole generation lost their ability to generate any meaningful GDP, how cash markets replace the official markets with all these taxes burdening people to death and how investors shy away from all that and completely ignoring the fact that a year ago they painted Milei as a great economic saviour...
The operation was a complete success, however, the patient did not survive 😅
I hope Argentina finds its prosperity. It seems like the best alternative to Europe in terms of culture and people, but I hesitate to move somewhere so unstable and stagnant.
The culture & mindset resembles Venezuela & Guatemala
@@dennis771 no, the culture not at all. Im an argie I can assure you is different.
Yeaaaaah. It's not great. If we talked about writting or music (that is not reggaeton, which burns my ears at this point, sorry), maybe I'd agree. But we have a certain, culturally ingrained "behavior" (for lack of a more accurate word) that I find a bit unbearable sometimes.
I have also visited the outskirts of some main cities across the country. _It's not good_
@@sasa_dcf very interesting 🤔, from watching from afar in America 🇺🇸; I can’t tell a difference between Argentinian and Venezuelan mentality regarding everything; Milei made the difference thou.
a simplistic analysis of a complex situation that clearly exceedes economy.
Argentinean here. This video is actually very precise 👏
Modern Argentina looks like a rehab for people who have been addicted to government money.
If anything, Milei is hyper important as politicians shouldn't be taken seriously.
They're public servants, he has a questionable vision but he takes action unlike the "yes-men" in suits who stagnate everything for approval
Really hope the "almost 50% of the population is in poverty" is worth it in the end. The conclusion is: this will end terribly or wonderfully, no in between.
Push through it. Greetings from Brazil 🇧🇷🤝🇦🇷
That poverty rate was achieved during the Fernandez-Massa administration. It has only gone down since Milei took office.
@@Nerthos Somehow the same is not the case for food security acording to unicef and DW says it's 20% up since milei took office.
@@claasmachens3858regardless of how it is today, it had to be done. Im
Brasil is more poor than haiti
@@EzequielRuizdiaz-uu8ot what are you smoking
Protests are actually very low right now
What I got from this:
Milei is far more educated on the subject matter than I thought, belied by his flamboyant nature
Argentina is a really beautiful nation
Excuse me, Argentinian here, where did you get the thing about economic prosperity?
In the end of the Gilded Age, Argentinian GDP, American GDP, British Empire GDP were basically the same.
@@kennethkho7165 I don't think they were--it was just a much smaller difference--, but even then Argentina was by far the most unequal even in basic things like schooling. It was an economy for the elite, so I wouldn't call it "prosperous".
@@DrVictorVasconcelosit wasn't that much different than any other liberal democracy from the late 1800s
@kennethkho7165 A bit of nuance : Argentina GDP was actually quite small, and the Argentinian economy did not compete with superpowers of the time. What it had was a relatively high standard of living and a good GDP per capita (emphasis on per capita).
It's a bit like Ireland nowadays, it has the third GDP per capita in the word (discarding micronations), despite not being a heavyweight on the international scale.
I'm not sure where all of this information is coming from, I've studied argentinian historia and media history and there is no trace of a prosperous economy. Start of the XXth century in argentina was an economy for the elites THAT IS WHY ley saenz peña came to be for example
You are missing some details over what else has been cut. Not to mention, why cut education?
Education depends on the regional governments, not the federal (Milei)
More money on the books by cutting social services and austerity. 53% record poverty brings down inflation with no money to buy decreases demand and increase supply.
Javier wants to join a middle eastern religion, destroying the educated class is a staple wherever they take over.
@@Metricadoce National universities as well?
He didn't cut education as it doesn't depend on the federal government, he only controls the budget assigned to universities which weren't reduced either, they started to ask for more money because they run on huge ammounts of deficit as they spend the money on parties, gender perspective talks and that sort of BS. Milei told them they needed to reduce their deficit and gave them the ability to make foreign students pay for studying there since they have always studied for free
It's not precise enough to call Milei's currency replacement plan dollarization. It's true that a close advisor to him was very pro dollarization and that became a big talking point during his campaign, but Milei's actual plan is currency competition. He wants the people to choose their medium of exchange, which will practically begin with USD considering it's already wide-spread use within the country (it also doesn't hurt that dollarization helps with his negotiations with the incoming Trump administration). But he is purposely not closing the door on other currencies, just on an Argentine state-issued one.
It's exactly what I voted for. Greetings from Joseph C. Peace
Its good to see a mixture of policy changes embracing privatisation and capitalist policies together. I've always said a coherent society needs socialist and capitalist policy, ie a centrist approach.
54% poverty rate, great success. Look I Live in a country that went all in austerity in early 10's. They were only good to increase debt, stagnate the economy and lower the standards of living. It hurt and took us nowhere. The IMF is the first to admit that austerity doesn't work and still people promote this as magical solution?
It is not in 54% anymore. It s falling. Wait and see.
It's currently at 41%. Compared to 54% last year, so I'd say that's a success. Also poverty line is a bit weird here. My family was put in the poverty group (years ago) because we didn't have a computer at home (for some reason you were technically poor if your household didnt own one), but we're farmers, no need for computers and we got land worth over a million dollars hahaha
@economicsexplained
10:53 - the unemployment rate in Argentina, you have 3013 as a year on the x-axis.
I'm sure he's just looking at the future forecast.
Everyone can predict the future, especially economists
Remember when Javier Milei was "far-right" and a "wannabe fascist?"
Pepperidge Farms remembers.
Sipping my mate and wishing Argentina success
There is a mistake in the video. Milei isn't trying to dollarize the country itself but to establish a currency competition following Hayek's "guidelines."
Increasing taxes? WHERE? Do you even know what you're talking about?
Why is the tone of the video begrudging? The vibe i got was "its working but i wish it wasnt, maybe it will fail"
Because the UA-camr is Australian so is most likely a fan of big government
Because any success in Argentina that involves anything other than the state is frame breaking for a progressive liberal.
It's a dangerous precedence if it succeeds. In that case, make sure to go long on Stihl positions.
Statists are terrified, Milei succeeding by cutting down the state will encourage other countries to demand their own chainsaw, pointing at Argentina and saying "it works"
This is a good thing.
It sounds like the opposite tbh, he didn’t go into the fact poverty and unemployment has gone up. It seems like he’s trying to paint things as better than they actually are
It should also be mentioned that a lot of unrest in Argentinian society as of today is not actually due to the gutting of government agencies and extreme subsidies, but the absolute hatred Milei and his officials show for the working class. The day he entered office, he immediately passed a legislation to destroy most of workers' rights (think legalizing labor without any security or benefits and removing compensation to fired employees) and also removing healthcare measures and pay to retired people who paid their dues for 40 years to now be basically unable to survive on their own. All this paired with brutal repression in the streets and tax breaks for the rich and corrupt politicians and businessmen.
Things would not be so bad if there were only macroeconomic changes. The loss of rights and means to defend them is the worse battle, as those things are what the people actually need to hold up their standards of living.
Saludos desde Argentina.
The mere fact that Argentines have more stable prices after a year of Milei's government, already gives them hope again.
Great suammry of the situation of argentina. I live in Uruguay and here the media is really polarized (as in Argentina), so is nice to see an "outside view"
You didn't realize it was the greatest expending cut in history, a singular government
There was a similar experiment in Europe, albeit on a much smaller scale: Montenegro gave up its currency after years of hyperinflation, switching to the Deutsche Mark in 2001 and the Euro one year later, without being a member of the Eurozone. It worked very well for them, and they will join the EU soon, probably next year.
So good luck Millei and Argentina!
Te deseo todo lo mejor!
It reminds me of what Poland did after the fall of communism in 1989 (minus dollarization, but Polish currency was tied to a dollar at a government-mandated rate for a couple of years). I hope it will work as well in Argentina.
Viva la libertad CARAJO!!! 🎉🎉🎉🎉
Dollarization isnt an issue. People were/are using it anyway. He's just closing the theater. IDO!
He's biggest win is getting rid of the corruption.
What a beautiful country ! Hope they recover well and strong. As an Indian, the point about ‘brain drain’ to the government resonated. For decades, the government was the premier employment destination for well educated Indians. Today there are many options, but yet for a lot of young folks, especially those outside big cities a government job is highly sought after.
This explanation barely addresses any kind of actual critique of Mileis policies from an alternate economic perspective. Lazy. You need to talk to professor Richard Wolff and stop assuming “economics” is thd same as “neoliberal economic theory” because shock doctrine politics have a notorious history people should look up and watch Naomi Karina the shock doctrine
Richard Wolff is a Marxist ideologue. It was those type of policies that got Argentina into the mess its in. Also, I believe you are referring to Naomi KLEIN who wrote the Shock Doctrine. Also, my experience has been that every person who uses the term "neo-liberal" tend to come from the FAR LEFT. I am from the center-left (between a social liberal and social democrat). You need to allow the private sector to drive the economy but you can then use progressive tax policy to provide basic services and help for the poor. But having the government run large sectors of the economy and subsidize energy prices is a HUGH mistake. These will inhibit economic growth. I do think dollarizing the economy is generally a bad idea though. Having control of monetary policy can be helpful in combating deflation and incentivizing economic growth during a downturn. However, considering how abused Argentinian monetary policy was in the past I GET why some advocate for it.
Those people ruined Argentina. They don't deserve be listened to.
Feel free to outline how marxian economy would've dealt with the situation in Argentina before this guy took office. Seriously, I'm curious, not trying to antagonize you (at least not too much). Though I will say that I think different situations require approaches of different directions and perhaps intensity, and just by the name of it marxian economy and pre-milei argentina doesn't sound like a match made in heaven. Feel free to be extensive and detailed.
He used ai to write it
Said neoliberal = low iq
13 mins of video and not a single comparison between the KPIs a year ago and today. The reason is simple: You could not find a single KPI that is worse, quite the oposite, every number is showing that Argentina is recovering and starting to grow again.
Real stats:
One year of Milei:
- Inflation slashed from 25.5% monthly to 2.7%.
- Poverty rate demolished from 54.9% to 41.7% (expected for December, UCA)
- From 2.7% primary deficit to 1.7% surplus.
- Dollar blue and official rate converging.
- Country risk obliterated.
- Dollar deposits and savings soaring
- Real wages rising
Bro, the prices for everything are out of control now. It has thrown more people into poverty, killed their tourism and not brought any significant investment into the country. Their peso is still falling off a cliff against the USA dollar. The president is now taking out more loans in the billions against the natural resources of the country. He pimped the country out, lol.
@@0ExG0 hahahaha soooo fake
@@lucioarias4773 why don’t both of you named your sources then
KPI's aren't exactly a good mesure for the results of spending cuts.
I am anoyed because there was nothing on the externalities of the spending cut's. Are the improvements enough to make up for fewer univeristy degrees, more malnourished children, more drugs, and the spread of criminal gangs?
The problem with mass politics is that once an economy has become broken enough it is impossible to reverse course since the people won't vote for harsh but necessary change.
Wow argentina looks incredible beautiful ❤
I hope this works for Argentina, beautiful country with amazing people. It hurts knowing they are going through a painful time but God willing they will come out the other side far better.
Makes perfect sense. They have spent far more than they produce and have been living off debt which kept increasing while income has been declining. You can only continue this way if your fiscal foundation is solid ie institutions, national currency, industries, credit, and investors.
Of course to avoid going off an economic cliff immediately and harsh choices must be made of which the short term effect will be painful and scary. Minimum a few years at very best to actually FEEL the positive benefits.
The real issue with Milei style “libertarian” policies is that the people who get fucked over and have to experience the pain from these economic reforms are always the people already feeling the most pain from the system.
The ones who feel it are those who don’t actually produce value to the economy commensurate with their income. That is the problem with government involvement in an economy. The signals sent to producers and consumers via pricing are distorted, resulting in overall reduction in economic output.
But the other side was way too worse tho
I’m sure your beliefs scream this at you, but it’s not at all necessarily true or true in this case (especially in the way you put it). The people feeling the most pain under the old system were whatever people were paying the most taxes and adding the most value while getting the least back in benefits. The people getting the most pain from the reforms are the people who had sinecures, plush government positions, had stakes in protected industries, etc.
The people we all should be concerned most about are those dependent on government aid due to ACTUAL NEED. They were presumably getting much relief under the welfare state.
Where’s the evidence those people are getting cutoff without being able to find a way to replace their sustaining resources? Generally, the press LOVES to push anecdotes about poor folks losing this or that benefit while ignoring any statistical evidence that most of them are actually doing better. This was a common press piece ploy during the Clinton era welfare reforms when he eventually signed balanced budgets.
It gets ratings, raises anger, and infuriates the collectivist souls, but it’s usually a true story spreading a very misleading message. Whenever there is change, it leads to the cheese getting moved. Those least able to adapt can suffer no matter how much better the new change will be for them once they adapt.
It's not true at all. Among those who suffer the most are all the clients who used to be propped up by subsidies (states employees, protected industries,...)
@@mistermercury8696 Inflation and devaluation are the worst enemies of the poor, and as of now, these problems have at large disappeared, and you can clearly see the benefits of this, by the fact that poverty has finally started to decrease significantly
Thanks!
Thank you for getting this out there.
I think one of the biggest positive signs for me is the drop in inflation. It is incredible how much it has gone down compared to last year. Still, there is a long way to go and I hope it turns out well.
De qué sirve que la inflación baje si sólo es porque los precios ya son tan altos que la gente no puede comprar? Esa es la razón de la baja de la inflación, el silencio de los cementerios.
@@hernanrh Argentina has Switzerland prices with African wages now.
@@GrandChessboard me equivoqué, quise decir inflación en lugar de precios. Gracias por la corrección. Y si, Argentina va derecho al colapso con ese rumbo.
@@hernanrh Yes, losing all those tourist dollars now. Taking out a 2 billion dollars in loans from his buddies at the World Bank against the natural resources. Scary for the people there. I used to visit but too expensive now. Uruguay does not seem too expensive compared to Argentina now.
@@GrandChessboardAfrican wages? The average income is 1k dollars. It’s definitely not amazing, but it’s not as terrible as y’all make it seem. You can’t have European wages, without European prices. Things are slowly balancing out, some prices are going down, salaries are slowly but steadily increasing. As the government continues deregulate Argentina, and new competitors arrive into the country and local businesses become more efficient, the prices situation will improve.
just so you know, this is not what’s happening. The gov is trying first to stabilize the currency, then stop the ‘cepo’ (in argentina you can only legally buy usd from the state, in a fixed price they use so they don’t have runs), and then probably the dolarization is not gonna happen, it’s just gonna be free circulation of currencies, euro, yuan, usd, bitcoin even. You’ll be able to pay whatever in whatever you want.
All those different currencies would be a recipe for chaos, which may be what this government wants. Then when people protest, the government unleashes the police and military, and justifies their brutality on the grounds of restoring peace and order.
Argentina was never a wealthy country, we had borrowed capital from Europe for most of our history. The taking credit then paying then taking credit and paying and so on has been a crucial part of pur economic history, it all essentially comes from the way that the oligarchy of old decided to develop the economy. Instead of giving land to farmers so that they would work it for generations they rented it for some years and made a quick profit, good for them not for the future development
My counterargument is based on the wealth of the common Argentinian. Because in Argentine culture, having beef is considered normal. Grilling big chunks of beef was almost a pastime as important as football. And Argentinians were wealthy enough to afford it.
For almost all other countries, beef is a very expensive protein. But Argentina’s wealth afforded even the poor to eat beef. At least it used to.
@@Troggedemic Yeah thats because its produced in here, we dont pay import price for it. Consider wine as well, cheap wine here is a medium price outside, because its made here
You don't get borrowing at all, and neither is this channel. Wealth of a country is economic potential. Money is just a measurement entity. The value of money is non-existent. Imagine being stranded on a lonely island without food, but with millions of dollars. Would you consider yourself rich?
@@GrouEEf exactly my point, we weren't wealthy because the capital was from Europe. Our telephone infrastructure was owned by Spain if I'm not mistaken, trains were British, electricity was Spanish and more key infrastructure was not from an argentinian capital
We were never wealthy because everything we owned was on loan, and if you don't own anything how could you decide to exploit the resources you have
When I was holidaying in Argentina a few years ago, I was very surprised to see so many locals partying at bars and clubs late into the early morning on a typical Tuesday night. I was wondering doesn't anyone here need to work next next day? I could not comprehend what I was experiencing.
Another thing Milie have been doing throughout the year has been systematically finding, revealing and dismantling corruption and over expending of the past government, that is am major contribution to his popularity
This is a very simplified report that seems built to validate austerity rather than honestly investigate the effects of Milei’s extreme policies.
Here's a thing the video didnt mention:
Milei's approval rate by the public is higher than ever.
Do you use your sponsor to make videos?
Actually, Milei is aiming for something more ambitious than dollarization, he wants free competition of currencies, so that the people choose what currency they want to use.
As someone who follows milei on a daily basis this video is really basic
It’s 13 min. Probably an intro.
We are with you Argentina. Hold on tight ... it's not going to be easy. All the best from Bulgaria!
I liked his ideas but was put off by his cartoonish behavior. Still voted for him because the alternative was a continuation of the same kind of government that lead us to ruin. The man has done more in a year than others have done in two terms, I stand by my vote. Although sometimes I wish he wasn't so belligerent in unnecessary situations or against people who don't really matter but give fuel to the press to write bad things about his character instead of looking at his policies.
hes a second term of macris goverment... same stuff, nothing new
Fact Check at minute 8:05. Milei doesn't propose dollarization; it proposes that the economic agents choose what currency they wish. What he said is that the Argentines currently seems to have a preference for the US Dollar.
Seeing a nation with so much to give, with so much potential be reduced to such a state is breaking my heart if I'm honest.
I'll admit that I've little to offer by prayers, and the best of wishes for a prosperous future.
Viva Argentina! 💙🤍
That's why Argentina has one of the highest amount of psychologists per capita in the world due to the disillusion they
feel with how Argentina was handled by previous Governments though they are very resilient by nature
and hopefully Javier Milei and the first libertarian party in the world can restore Argentina to its once
prosperous glory!
GOD BLESS
VIVA LA LIBERTAD🦁
The prices didn't skyrocketed, they grew up after Milei took off the subsidies that keep the prices artificially cheap. But the most important thing is that he erased hundreds and hundreds from stupid regulations and complicated taxes that only obstruct the economy to work properly. Imagine to have in your country a "de-regulation" ministry, that's crazy, imagine the amount of obstacles that Argentina had and still has some.
6:50 the Argentina Great power theory is just a myth. Having a large gdp per capita doesn't mean being a great power. Even it ignored all the systematic problems. So stop repeating pseudoscientific terms.
I really expected more form EE. Though they have been in decline for 1 o 2 years now.
There is an error in the intro: Milei isnt increasing taxes, is reducing them.
Aumentó el impuesto país, una de sus pocas buenas políticas, pero que paradójicamente es todo lo opuesto al liberalismo económico.
@hernanrh en ningún momento aumentó el impuesto país. Massa lo aumentó antes de irse. El impuesto país está arrastrado del gobierno anterior.
@AeROweasel lo bajó al inicio y lo subió después de darse cuenta de que era necesario. Recién ahora lo bajó un poquito, y eso es algo que no debería hacer si espera que su país no se dedique a vender palos, piedras y fruta.
Great video mate. I found it pretty educational. Greetings from Tero Violado, Argentina
If Argentina starts using the United States dollar as its currency, would this trend continue to other nations? How much of a global currency would the United States dollar become?
Make
Argentina
Great
Again
Rome wasn't built in a day.
Argentina will NOT be fixed in a single year, so the question seems ... disingenuous at best?
Yes. I think a lot of videos on this channel are decent, but the mark has been missed by a mile here. There isn’t much substance actually presented, there is a severe lack of understanding from a quality of life perspective (52% of people are now living in poverty) and like you say there hasn’t been enough time to watch, analyse and comment so confidently on what has happened.
Could this actually work? Maybe. Are we in a position to say it is working right now? No. It is still hurting the Argentinian people massively.
Hoping the next video is better than this one
@@5vxz Anything can work if you put infinite timeframe. Can Milei's libertarian agenda work? If the timeframe is large enough, yes. Will lots of people die of hunger and suffer miserably for that to be achieved? Absolutely.
fixed from the damage done but the same ones on the goverment now haha good joke
You could still look at development and ask yourself "is the foundation of the economy improving or getting worse?"
Kinda hard to say because I didn't find anything on investment and Capital flows, but the UNICEF data on child malnourishment sugests that even if milei rebuilds confidence, that might not solve the problem if other problems get bad enough.
Fun fact, the $7.5bln from the IMF is to recover so we can pay back the $40bln previous loan to the imf
Absolutely loving the 4k!
The idea of spending less than you bring in is EXTREMELY complex. I just can't comprehend it. Perhaps you should do a ten chapter video on how this can be accomplished.