I regret to inform you that Reason is at it again:
https://twitter.com/LPNH/status/1773337490709000345
Is Javier Milei Making Argentina Great Again?
The new Argentine president is popular with American libertarians, but his record at home looks increasingly populist and authoritarian.
https://reason.com/2024/03/27/is-javier-milei-making-argentina-great-again/
{Antonella Marty | 27 March 2024}
In January, Argentine President Javier Milei went to Davos, Switzerland, to
lecture the rich and powerful about the miracles of capitalism. During his
speech at the World Economic Forum, Milei explained to his audience that entrepreneurs are heroes, socialism leads to corruption, and private property is the key to prosperity.
In his address, he referenced Israel Kirzner, an Austrian-school
economist and disciple of Ludwig von Mises, who is far outside the intellectual mainstream. He even named his
cloned dogs after iconic free market economists Murray Rothbard, Milton Friedman, and Robert Lucas Jr. Many libertarians have been thrilled to hear their ideas articulated so eloquently by the leader of South America's second-largest nation, sparking widespread enthusiasm.
I'm less enthusiastic. Born and raised in Argentina, I joined the liberty movement at 17. I delved into the writings of Friedrich Hayek, Ayn Rand, and Mises and marveled at how their insights accurately described my experience living under the big government of Cristina Fernández de Kirchner, who was president for most of my adolescence. This led me to devote my career to advocating for the ideas of liberty because I believe they're the best path to prosperity and human flourishing.
To me, Javier Milei poses a threat both to Argentina and to the global liberty movement. I see him as a self-obsessed
populist with a savior complex who gratifies libertarians by echoing their ideas. Yet his actions contradict his words: He raises taxes, escalates the drug war, restricts social freedoms,
threatens his political opponents, and appoints political hacks from previous corrupt administrations to positions of power.
Milei, known for touting anti-drug policies, appointed
Patricia Bullrich as his security minister, a role she previously served under former President Mauricio Macri. Bullrich recently
praised El Salvador President Nayib Bukele for his tactics in reducing gang-related crimes, saying she wanted to imitate his measures in Argentina. While Bukele's policies have significantly reduced El Salvador's crime rate, they have also resulted in the arrest of approximately
1 percent of the population, including numerous instances of wrongful arrests and also destroying the rule of law. This heavy-handed strategy in El Salvador has led to a widespread erosion of basic constitutional freedoms.
Bullrich regularly shares updates on social media of drug raids, including videos of herself incinerating seized
marijuana. "We are cornering drugs and drug trafficking, " Milei
said recently. "We won't concede even a millimeter."
Some argue that fixing Argentina's economy is what really matters in a country facing nearly 300 percent annual
inflation. But crime and insecurity also hinder Argentina's economic progress. Violent
family-run narco gangs dominate the drug trade, especially in cities like Rosario, where the homicide rate
nearly doubled from 2010 to 2020. While the president's anti-drug campaigns make for some attention-grabbing
social media posts, they only make the drug trade
more violent and deadly.
Milton Friedman famously helped
end the U.S. military draft. But Milei's minister of defense, Luis Petri, doesn't share the Nobel laureate's dim view of compulsory military service. Petri said in a recent
interview that Milei's administration was "considering" reinstating the draft. Vice President Victoria Villarruel echoed this sentiment,
suggesting that the absence of compulsory military service is "making later generations of men (and women) crybabies."
Milei's worldview is infused with mysticism and messianic symbolism. He refers to himself as an "alpha lion," often starting his
speeches by saying, "Hello everyone, I am the lion." He
compares himself to Napoleon Bonaparte. A self-aggrandizing ruler who boasts of his capacity to fix society if granted the necessary power to
override procedural and legislative constraints should trigger some authoritarian alarms.
Milei dubbed the "
troll president," craves adoration in ways reminiscent of Latin America's infamous leftwing autocrats, such as Fidel Castro and Hugo Chávez. He surrounds himself with sycophants and loyal supporters, including personalities such as influencer and writer
Agustín Laje and other high-profile influencers and paid trolls. This entourage
helps Milei mock his enemies, refine his personal brand, and galvanize support among libertarians in the U.S. Milei's circle of followers reminds me of "La Cámpora," a
youth group that championed Kirchnerism's political aims. But Milei's bullies are more radical and more violent.
Milei is a publicity genius, and like Bukele and Chávez, he's obsessed with his image.
He likes over a thousand tweets a day (mostly from his adoring followers), retweeting accolades and insults about his "enemies." He loves outrage. On one occasion, Milei
once said that "the State is like a pedophile in a kindergarten with children chained up and covered in Vaseline."
Both former President Donald Trump and Milei are known for their tendency to appeal to emotions and cast societal divides in terms of "the people" vs. "the elites" or "us" vs. "them." This approach, known as populism, undermines institutions and amplifies the power of the state in ways that should be alarming, regardless of whether it comes from the political left or right. In
The Road to Serfdom, Hayek
wrote, "the contrasts between the 'we' and the 'they,' the common fight against those outside the group, seems to be an essential ingredient in any creed which will solidly knit together a group for common action." Populism works as a pendulum, suggesting that Milei's actions could provoke a counteraction from the opposite side of the spectrum once his term concludes.
Milei has turned on former allies who question his authority. Ricardo López Murphy, a respected figure within classical liberal circles and former mentor to Milei, declined to support Milei in the primaries over concerns about his populist tendencies. Last month, he
criticized Murphy, labeling him "a scumbag" and a "
traitor to the ideas [of freedom]." López Murphy
responded, "The Milei experience has nothing to do with [classical] liberals."
Although Milei enjoys broad support among American libertarians, several Argentine classical liberals perceive him as a continuation of the country's previous administrations. Economist Roberto Cachanosky
compared Milei's approach to Kirchnerism. "I say this because I know him personally," Cachanosky said. "He doesn't tolerate an opinion different from his own."
Economist Diego Giacomini, who co-authored four books with Milei, has become one of his most vocal critics. He
describes Milei as a conservative populist "stand[ing] in opposition to the Austrian school [of economics], the most liberal school of thought of all, to which I belong and to which Javier Milei once belonged."
After a dispute between the province of Chubut and the National Government, Milei tweeted the
AI-generated image depicting Gov. Ignacio Torres with Down syndrome. The incident was reminiscent of when Donald Trump
mocked a disabled reporter at a campaign rally. Milei has
said he's "naturally aligned with Donald Trump." When Milei
met Trump at the Conservative Political Action Conference (CPAC) in February, he greeted him with a bear hug. Milei promised to "Make Argentina Great Again," and in a video, he
told Trump, "You were a great president, and I hope you will be again."
Milei has a politician's knack for adopting positions that will attract a broader support base. During a visit to Israel, he
identified himself as Jewish. Yet when he
went to the Vatican to meet with the pope, he said he
was a "Catholic, Evangelical, and also practices a bit of Judaism." This came after previous statements where Milei
described the pope as the "person who represents evil on earth and occupies the throne of God."
Milei embodied a common trait among Latin American politicians: a tendency towards nepotism, entrusting state resources and government positions to unelected individuals based on family connections. Milei
appointed his sister Karina as general secretary of the presidency, effectively making her his top adviser. He calls her "the boss." The practice echoes throughout the region: Nicaraguan dictator Daniel Ortega famously referred to his wife as the "
co-president of the Republic," while Bukele's brothers
serve as his principal advisors in El Salvador. Fidel Castro's successor as Cuba's dictator was his brother Raúl, who had been the most senior member of his administration.
Milei has compared his sister to Moses,
characterizing himself as a conduit for her vision. "Moses was a great leader but wasn't good at spreading the word. So, God sent Orion to spread the word. 'Kari' is Moses, and I am the one who spreads the word. I am just a preacher." Milei's slogan is "
The forces of heaven," suggesting he may have lost sight of the importance of maintaining a distance between church and state.
Nepotism extends beyond Milei himself, permeating his party. Martín Menem, president of the Lower House of Representatives and member of Milei's party, recently appointed his
23-year-old nephew as an advisor. Milei's spokesperson, Manuel Adorni,
hired his brother as an advisor at the Ministry of Defense. Additionally, Vilma Facunda Bedia, an evangelical pastor and senator from Milei's party, recently
employed eleven family members, including her three sons, her daughter-in-law, her brother, and her sister-in-law, as political advisors.
Milei recently nominated Judge Ariel Lijo to the Supreme Court,
overlooking his role in encouraging Argentina's culture of leniency towards corrupt politicians. Lijo has a history of dismissing high-profile cases, including dropping
corruption charges against former Vice President Amado Boudou and
clearing money laundering charges against former President Cristina Kirchner. He also dismissed charges against a former intelligence chief
implicated in transferring a suitcase full of cash to the Venezuelan regime and dismissed charges in a
corruption case surrounding the state-owned energy company YPF.
Héctor M. Guyot, a journalist for
La Nación,
said that Lijo faces significant criticism from both legal and journalistic fronts for his questionable management of critical cases. He further accused him of working with a network of "judicial operators" from different political parties, which include his brother Freddy Lijo, Daniel Angelici and Scioli's former employee, and Guillermo Scarcella.
When there aren't enough family members to fill key political positions,
cronies are often next in line. The Milei administration is no exception. Daniel Scioli, whom
Milei appointed secretary of Tourism, Environment, and Sports, is a "caste" politician and a veteran Peronist. Scioli has a long history in Argentine politics: He served as vice president under Néstor Kirchner, a prominent figure in left-wing populism and an ally of Chávez; ran for president alongside Cristina Kirchner against Mauricio Macri; and served as minister of production under former President Alberto Fernández.
Milei's Interior Minister
Guillermo Francos was, until recently, executive director for Argentina at the Inter-American Development Bank (IDB), a role he was appointed to by former leftist President Fernández. Between 2000 and 2007,
Francos served as the president of Aeropuertos Argentina 2000, the company owned by long-time businessman Eduardo Eurnekian, which has a state-granted monopoly over airport concessions throughout Argentina. Milei also worked for Aeropuertos Argentina in 2000 until three years ago when he had to resign to take office as a congressman.
Julián Andrés Obaid was recently
appointed chairman of the Transport Security Bureau, a position he held under Fernández. According to a report from
Clarín, Milei has appointed
over forty Peronists to important government positions thus far.
On gender issues, Milei aligns with cultural conservatism and right-wing ideas. When referring to his sister Karina, he uses the male pronoun "
he, the boss" as a way of signaling her dominant role. He has
banned gender-inclusive language in the government, including in all official documents. His administration also
prohibited using non-binary uniforms for police and military officers, outlawed tattoos and painted nails, and mandated strict uniform codes—female officers are required to wear skirts unless they are pregnant, while male officers are forbidden from having beards. Yet despite his conservative measures, Milei's government
allocated 827 million pesos (almost $1 million) for hormone treatment supplies for children, adolescents, and trans adults.
Milei is a pro-lifer, asserting that life begins at conception, and has vowed to outlaw legal abortions in Argentina. "Abortion is murder made worse by the connection between mother and child,"
he said recently. In line with his views,
nominated Manuel García Mansilla, a well-known critic of abortion rights, to the high court. During
his speech at CPAC, he equated abortion to socialism, claiming that it stems from radical environmentalist views that population growth destroys the planet. Pro-choice libertarians would argue the debate is about bodily autonomy and personal liberty. Last week, he
tweeted, "Abortion is a murder aggravated…by the disproportion of forces. If you are reading this post and you are one of those who positively weigh this type of aberrations, thank your mother for not thinking the same way."
Milei is eccentric in a way that makes for a good copy—which may be entertaining from afar but
is genuinely alarming for Argentines. What would Americans think if President Joe Biden claimed his dog was one of his lead advisors? Milei claims to have communicated with his
deceased dog, Conan, through a medium. Conan's clones—Murray, Milton, Robert, and Lucas—are still walking the earth and doing so at taxpayer expense, as Milei recently
shared a photo of their new state-funded kennel at the official presidential residence in Olivos.
Despite constantly citing economists such as Rothbard, Henry Hazlitt, and Hayek, it's not clear that he has truly absorbed their work. His books,
The Way of the Libertarian and
Pandenomics, include passages directly copied
and pasted from the work of those writers.
The reality is that Milei's economic policies do not align with his rhetoric. But because he is such an effective communicator, most of his fans haven't noticed. The same president who has impressed foreigners by flying on commercial flights as a gesture of his frugality
just signed a decree increasing his own salary by 48 percent and then took it back in response to public outcry.
Despite his campaign pledge to introduce no new taxes, after
he promised to sever an arm when
signing an
agreement with Asociación Argentina de Contribuyentes, live on TV, Milei
proposed an income tax hike after returning from Davos, and more recently, he expanded the number of Argentines subject to paying it. "They are looking for the private sector to…spit out dollars," Giacomini
said of the move.
Despite calling taxes "theft," Milei has
increased the PAIS tax, imposing a 35 percent surcharge on foreign currency transactions. The measure, which effectively acts as an import tax, hinders free trade and has been exacerbated by Milei's decision to
increase the exchange range. He has also
raised taxes on gas and exports,
including wheat (12 to 15 percent), corn (12 to 15 percent), beef (9 to 15), and flour (31 to 33 percent).
Milei was elected on a promise of dollarizing the economy, claiming it would be "
super easy" to implement. He's now
backtracked. And while he has
proposed to privatize 41 public companies, he can't proceed without congressional approval. While this initiative could be a positive development in some cases, it's noteworthy that Milei has excluded the energy company YPF and the national bank from his privatization agenda.
He backtracked on a
promise to eliminate the official change rate, which empowers the government to set the price of dollars. While Milei's dog Milton might not have encouraged him to support a free-floating currency exchange, the economist Milton Friedman would have advocated for it,
highlighting how a fixed exchange rate caused Argentina's numerous currency devaluations. These controls have also
contributed to the country's capital flight and broader economic instability.
Currency
controls distort the market, reduce competitiveness, discourage foreign investment, foster black market activity, and contribute to inflationary pressures. An alternate option would be for Argentina to embrace bitcoin as legal tender, though that seems unlikely. Recently, the non-profit Bitcoin Argentina criticized Milei for trying to
regulate all aspects of crypto asset trading. Milei's government, through the National Stock Commission, also
created a state agency to regulate cryptocurrencies in Argentina. Under the new
regulation, entities of individuals transacting in bitcoin and other digital assets above 27 million pesos per month are given 42 days to enroll in the Registry of Virtual Asset Service Providers. According to the legislation, those who fail to register "shall refrain from performing in the country any of the activities or operations covered."
While Milei garners media praise for achieving a government surplus, his administration has also
authorized the issuance of more public debt, in contrast to his chainsaw-wielding campaign promises. "The chainsaw plan is coming. Tremble, you thieve politicians. You are going to stop stealing. You are going to have to work like honest people. Keep lying to the people, thieves,"
said Milei during his presidential campaign. Speaking of plagiarism, it seems that the chainsaw was also
borrowed, in this case, from U.S. Senator Rand Paul (R–Ky.).
Milei's administration garnered attention in the American media for achieving a balanced budget marked by tax increases and spending cuts. But it matters what you cut. Bureaucrats and rent-seekers—the "political caste" Milei deplores—have been spared from austerity measures. Menem recently approved a 29.5 percent
increase in the salaries of congressional state employees.
Milei promised to cut several government ministries and entertained foreign audiences with a
video of him yelling "
¡afuera!" or "get out!" while pulling down sticky notes with the ministries' names printed on them. Yet his actions amounted to merely renaming them "secretariats." This change has resulted in
practically zero impact on spending while consolidating control in fewer hands, with nine large ministries replacing 18 smaller ones.
Milei says correctly that the government is broke, and yet his administration is
planning to acquire 24 U.S. F-16 fighter jets from the Danish government for almost
$700 million—the largest military expenditure in the nation's history, despite the fact that the country has no foreign adversaries.
Much of the cost-cutting has come from cutting Argentina's elder care entitlement. By February, the minimum pension in Argentina was
projected to fall to a purchasing power even lower than during the 2001 economic crisis. Nowadays, a retiree earns roughly 46 dollars per month in a country with nearly 300 percent inflation. Vice President Victoria Villarruel
criticized Milei's actions, emphasizing the issue of pensions and condemning the "
liquefaction" of pensions: "I do not agree with continuing to equalize everything downwards. After contributing all his life to the pension system, I believe a pensioner should also receive a decent retirement based on the function, the work, and the time contributed. Let's go up instead of going down."
Argentina desperately needs market liberalization to exit its devastating economic crisis, a situation made all the more urgent by an inflation rate that now surpasses Venezuela. But Milei has made too many false promises. His record so far suggests that he's a typical Latin American populist, and I worry that the failed results of his presidency will become a symbol of a right-wing model and could harm the liberty movement's credibility and progress.
