The election of Javier Milei as President of Argentina sent shockwaves across the globe. Libertarians everywhere rejoiced to see Argentines elect a candidate that stood against authoritarianism and big government. Milei has been dubbed the “Trump of South America” and the “Bolsonaro of Argentina”, along with the usual media smears of “far-right” and “populist”. Clearly, they see Milei as a threat to the establishment.
So, who is Javier Milei, what does he stand for, and how did Argentina get here? Let’s dig into it.
The Struggles of Argentina
Argentina’s economic history is pretty rocky, to say the least. They went from being one of the wealthiest countries in the world in the early 20th Century to being on par with far less-developed nations. What happened? Well, there have been a few nagging issues affecting Argentina for the last century, greatly influencing their economic standing.
Political Instability
There were a whopping SIX military coups in Argentina in just the 20th Century, occurring in 1930, 1943, 1955, 1962, 1966, and 1976.
According to Wikipedia, “In the 53 years since the first military coup in 1930, until the last dictatorship fell in 1983, the military ruled the country for 25 years, imposing 14 dictators under the title of “president”, one every 1.7 years on average. In that period, the democratically elected governments (radicals, Peronists and radical-developmentalists) were interrupted by coups.”
The final dictatorship was ended in 1983 after the Dirty War with the democratic election of the Radical Civic Union party. Since then, Argentina has democratically elected all of its leaders. However, ongoing corruption, scandals, and low levels of public trust continue to plague governments.
Corruption
Argentina’s score on the Corruption Perceptions Index (CPI) is 38 – earning it the rank of the 94th most corrupt country in the world (out of 180 countries). The CPI measures how corrupt each country’s public sector (i.e., government) is perceived to be.
According to Transparency International, “Interference in the judiciary by political authorities is jeopardising the country’s independence and creating an impression of impunity.”
And corruption has long been an issue for Argentina. Per the Argentina’s Economic Collapse documentary, “Ever since independence, almost 200 years ago, Argentina’s foreign debt has been a source of impoverishment and corruption and the biggest scandals. Since the first loan negotiated by Rivadavia in 1824 with the British Bank Baring Brothers, the debt was used to enrich Argentinean financiers, to control the finances and empty the country of its wealth.”
While Argentina is certainly not alone when it comes to corruption running rampant, this has been a consistent issue plaguing the country for many years, and people are sick of it. You can see why there is so little trust in government.
Inflation
Much like political instability and corruption, inflation has been an ongoing feature of the Argentinean economy for well over 100 years. Today, in 2023, inflation stands at an eye-watering 143%. But this isn’t even the worst it’s ever been; it actually hit over 20,000% in 1990 and sits at an average of about 190% from 1943 to 2023.
Inflation is often looked at as a sign of political and economic turmoil, of which Argentina has an extensive history. This includes defaulting on their sovereign debt nine times over the last 200 years. With stats like that, it’s pretty clear why their inflation has been running out of control for over a century.
And now, with 40% of Argentines living in poverty and 9% in extreme poverty, it is no wonder why the people were demanding change.
Enter: Javier Milei.
The Promise of Javier Milei
Argentineans were looking for real hope and real change in this election. After all, when your inflation is running at 143% and half of your population lives in abject poverty, something’s got to give. With ongoing fiscal mismanagement and broken promises being a feature of all recent Argentinean governments, voters needed a new option.
Javier Milei presented that option. An outsider who had passionate views about freedom and was not afraid to defend them, Milei began to be invited on Argentinean TV and radio programs for debates. You can check out a compilation of some of his appearances here and see not only how his passion for reform came through, but also how he was unapologetic about it. And the people loved it.
Here’s a great summary from the Mises Institute of how he captured the attention and the support of the Argentinean people:
“Combining ardor and wisdom with a striking media personality, soon Milei was the economist with the most television time and became a national celebrity. In addition to being aligned with the right-wing discourse of fighting crime and defending traditional values, his libertarian speech—saying things like “tax is theft,” “politicians are parasites and we don’t need them for anything,” “the central bank is one of the biggest thieves in the history of humanity,” “your welfare is taken through a gun pointed to the head of others”—managed to directly reach the masses who woke up to the truth about the extortion they suffer from political profiteers.”
Milei campaigned on the following ideas:
- Abolish the Central Bank and dollarize the Argentinean economy – similar to what Ecuador did 20 years ago (although now media reports claim Milei has walked back this stance)
- Shrink government and cut multiple government ministries
- Cut trade with large trading partners China and Brazil (although it appears he has walked this back as well)
These ideas, while labeled radical by the media and establishment, resonated with the public, and Milei, the 53-year-old self-described anarcho-capitalist, was elected with a resounding 56% of the vote on November 19, 2023.
While his campaign promises are music to the ears of Argentineans and libertarians the world over, it remains to be seen whether Javier Milei will deliver the type of change Argentinean people elected him for. But expats and investors alike are already starting to sit up and take notice. Could Argentina be the next great bastion of freedom?
Why you may want to consider Argentina for your Plan B
Argentina has long been a favorite of expats across the world, but the election of Javier Milei points to the potential for some great changes to occur in the country.
Here are a few of the reasons why you may want to consider Argentina as a great Plan B option:
Resources
Argentina is rich with natural resources and has a thriving agriculture industry. With plenty of water and land available, you could go to this country and truly be self-sufficient.
Location
Argentina’s location in South America is wonderful because it is far away from the regional conflicts taking place in eastern Europe and the Middle East. Plus, you’ve got some distance from the United States which, let’s face it, likes to get involved in all these conflicts, too, but from a distance. If you are looking for a great “bug out” location, Argentina may just fit the bill for you.
And, while it’s a long flight from North America and Europe, you can get direct flights daily from multiple cities making it easily accessible.
It has a pretty good time zone, too, splitting the difference between North America and Europe. This enables you to work with team members and clients on either continent without having to get up in the middle of the night!
Geography and Climate
At 2.78 million km2, Argentina is a huge country with all varieties of landscape and weather. The landscape includes everything from mountains to plains to beach to tundra and everything in between.
The weather varies just as much, depending on where in the country you are. It is hottest in the north and gets cooler as you head south. Whether you want dry, humid, temperate, hot, or cold, you can take your pick in Argentina. Plus, you can enjoy all four seasons!
Affordability
The rapid decline of the peso certainly helps with the affordability in Argentina for expats. But, even aside from the currency issues, Argentina offers a much more affordable cost of living than Canada and the United States.
According to Numbeo, the cost of living in Argentina is 56.4% lower than in Canada, with rent alone being 78.3% lower. Those are huge cost savings! Imagine what else you could do with your hard-earned money if you weren’t getting absolutely hosed on everything you need to survive?
A New Hope for Argentina
With the election of Javier Milei, the Argentinean people are declaring that they want change. They are declaring they are done with the socialist ideology that has been tearing the country apart for over 100 years. They want smaller government and less corruption. They want someone in charge who is not afraid to take on the sacred cows of the establishment.
Will Javier Milei, the chainsaw-wielding economist, be able to fulfill his pre-election promises? Only time will tell, and any of these changes he wants to make will certainly not happen overnight. But the Argentinean people are hopeful and inspired, as are many freedom-lovers across the globe, and we will all be rooting for their success.
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Thanks for reading and have a great week!
