How long will President Milei get to see if his economics works? It reminds me a bit of the medical treatment of not such a long time ago ie. blood-letting. The doctor always could throw up his hands and say 'I was called in too late"
"The economic data for January, Milei’s first full month in office, makes for sobering reading.Argentina’s latest descent into the economic abyss is as sad as it was predictable. In mid-December, I warned that Milei’s first dose of shock treatment, now being administered with relish by new Economy Minister (and ex-JP Morgan Chase banker, former finance minister and former central bank governor) Luis Caputo, risks wiping out what remains of Argentina’s fragile economy. Said treatment includes a 54% devaluation of the Argentine peso; a halt on all public works; the freezing of public sector salaries and pensions; a sharp rise in taxes, and the elimination of many public subsidies, including for energy and public transportation.Now, the economic data is emerging for January, Milei’s first full month in office, and it makes for scary reading. But before we get into the nitty-gritty, a reminder: the economic pain currently being visited upon millions of Argentinean workers and pensioners is an integral part of Milei’s economic plan. It is not an unfortunate by-product or unintended consequence; it is the intended goal — to impoverish workers and pensioners to the point where they cannot fill their shopping basket or buy even the most basic of necessities. If you starve the economy of demand, inflation eventually has to go down."
