In Argentina, President Javier Milei has screwed the economy up so badly he needs a $20 billion bailout. That’s because his “free market” economics don’t actually work.
In Argentina, President Javier Milei has screwed the economy up so badly he needs a $20 billion bailout. That’s because his “free market” economics don’t actually work.
Except, if we were to read the article, things are materially worse than when he took office:
And Argentina’s hyperinflation is way down. Argentina had 112% inflation previously. Economies are complicated and you can have good things happening alongside bad things, for various reasons.
Inflation is arguably down mostly because of austerity measures which have not addressed any fundamental problems, only kicked them down the road.
As the article addresses, inflation is down because demand has cratered, as people are simply significantly poorer than they were before. Demand for food is down, as people don’t have the money for food anymore, so prices must come down. Instead, people have to stand in breadlines to be fed.
This isn’t a good thing. It’s the worst way of addressing inflation, as it leads to sharp increases in severe poverty without addressing any of the actual causes of inflation. The Argentinian economy is becoming less productive and the added imports means more money is flowing out of the country instead of towards it.
Before, inflation was making Argentinians poor. Now it’s Milei making them poor. In the end, poverty is just getting worse.