Portrait of Javier Milei
Politician · concept
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Javier Milei on Capitalism

Laissez-faire advocate (strong)

Javier Milei is a staunch proponent of Capitalism, explicitly aligning with laissez-faire economics and the principles of the Austrian School of Economics. He fundamentally views Capitalism as the only moral and economically viable system, contrasting it sharply with socialism and communism, which he condemns as systems rooted in envy and coercion. His political platform and subsequent presidential actions have been centered on enacting sweeping liberalization, deregulation, and drastic cuts to the size and scope of the Argentine state to foster this free-market environment.

Context

Javier Milei's views on Capitalism are central to his entire political identity, stemming from his academic background as an economist specializing in economic growth and his intellectual alignment with libertarian thought. He rose to prominence as a vocal critic of the Argentine political establishment, which he views as fundamentally anti-market and responsible for decades of monetary crisis and economic decline. His proposed comprehensive overhaul of the country's fiscal and structural policies is designed entirely around maximizing the role of the free market and minimizing state intervention.

Actions Taken

  1. Economic Deregulation
    Signed Decree 70/2023, which deregulated the Argentine economy, affecting an estimated 5,000 public sector employees and aiming to liberalize various sectors.
  2. Housing Market Reform
    Repealed rent controls, which he argued stifled supply, resulting in a 40% decline in the real price of rental properties when adjusted for inflation shortly after.
  3. Legislation
    Passed a watered-down 'omnibus' bill that aimed at deregulating and reforming several sectors and state-owned enterprises, including labor and commerce reforms.
  4. Fiscal Austerity
    Achieved a fiscal surplus within the first months of his presidency by drastically reducing government spending by 30% and laying off approximately 52,000 federal employees.

Key Quotes

Capitalism, socialism and the neoclassical trap

Book Title January 1, 2024 — Title of a book detailing his economic worldview.

There is no alternative to a shock adjustment. There is no money.

Inauguration Speech December 10, 2023 — Stating the necessity of severe economic shock therapy to fix national finances.

Comparison

Milei's Capitalist approach is often compared to other global free-market proponents, drawing parallels with past leaders for his radicalism.

  • Margaret Thatcher: Milei has praised the former British Prime Minister, calling her a 'great leader' for her policies, aligning her actions with his own economic liberalization goals.
  • Carlos Menem: He admires former President Menem's policies from the 1990s, which included privatization and liberalization, indicating a historical blueprint for his market reforms.