Since taking office in December 2023, Javier Milei promised an economic revolution based on fiscal adjustment, deregulation, and an ultra-restrictive monetary policy. However, after almost two years of management, the results show a much more complex and painful reality for millions of Argentines.
⚠️ Surplus with Social Cost
Although the government achieved a historic fiscal surplus, it did so at the cost of drastic cuts to pensions, public works, and subsidies. Basic service rates skyrocketed, and the purchasing power of vulnerable sectors collapsed. Economist Martín Epstein warns that 'recovery is unfeasible with wages and pensions being suppressed.'
🏭 Industry and SMEs in Decline
Axel Kicillof denounced that the libertarian model destroyed more than 15,000 SMEs, doubled unemployment, and halted production. The official intervention in the exchange market contradicts the promise of free-floating dollar, generating uncertainty and affecting competitiveness.
📉 Electoral Defeat and Popular Discontent
Milei's recent defeat in the Buenos Aires elections was interpreted as a rejection of the government's economic direction. Even former allies like Carlos Maslatón labeled his political actions as “a failure” and pointed out that “the libertarian street tolerates neither economic failure nor corruption.”
🔥 Political Crisis and Internal Tensions
This is compounded by scandals such as the leaked audios of Karina Milei and tensions with Vice President Villarruel. The lack of internal cohesion further weakens the government's ability to sustain its economic program.
📊 What's Next?
Milei insists that he will not change course, but will deepen it. However, with an economy in recession, a impoverished society, and a weakened political base, many wonder how much longer this model can be sustained without a deep correction.
