Javier Milei and his ‘crazy’ economic policies

3 min readFeb 8, 2024

In December of 2023, Argentina swore in a new president, Javier Milei, a man with weird hair, and a self-described anarcho-capitalist3 who believes the government should have as little role in society as possible. He has implemented a series of aggressive economic policies aimed at addressing the country’s long standing macroeconomic dysfunction and stagnation. His policies include the privatization of state-owned companies, the removal of foreign-exchange restrictions, the alteration of housing rental and land ownership laws to allow for foreign investment, and the adoption of the US dollar in place of the peso. Milei’s policies have been met with protests, and there are doubts about their effectiveness. While some believe that his policies could help control inflation and encourage fiscal discipline, others are concerned that they could lead to hyperinflation and exacerbate the country’s economic problems5.

The privatization of state-owned enterprises has many many problems for the working population1. For starters, there is a massive threat of unemployment. One disadvantage of such a free market economy is dictatorship of prices from certain power-seeking firms in the economy, with the de-regulation of private firms. The new private sector has reduced the extent of maternity leave and reduced fringe benefits for workers. Being a capitalist and anarchist leader2, Milei’s policies make sense from one perspective: The massive issue in Argentina right now is the lack of high-income earners. Therefore, these capitalist policies, should hopefully, in the long run attract the high income earners and foreign multinationals to increase investment in Argentina. The bearer of the opportunity cost? The citizens and the working class of Argentina have to go through no social security and government services as the economy moves towards the free market.

Javier Milei’s policy on foreign exchange restrictions has both positive and negative aspects. On the positive side, removing foreign-exchange restrictions could help Argentina’s economy become more competitive and attract foreign investment. This could lead to increased economic growth and job creation, as well as a reduction in inflation. Additionally, Milei’s policy could help Argentina break free from its reliance on the US dollar4, which could provide the country with more economic flexibility and independence. However, there are also negative aspects to Milei’s policy: Removing foreign-exchange restrictions could lead to a significant devaluation of the Argentine peso, which could increase the cost of imports and worsen inflation. This could also result in a higher public debt burden, as the government would need to borrow more to finance its spending. Additionally, the removal of foreign-exchange restrictions could lead to capital flight, as investors may choose to move their money out of the country in anticipation of further devaluation.

Works Cited

Javier Milei and his ‘crazy’ economic policies

Written by Rishabh Gandhi