In December 2023, Javier Milei, a former economist and self-proclaimed ‘anarcho-capitalist,’ took office as president of Argentina, vowing to dismantle government control, slash public spending, and let free-market forces dictate the economy’s course. Rising to power on a wave of popular discontent with Argentina’s political elite, Milei was seen as an outsider who could break Argentina’s cycle of inflation and debt. A year later, the reality of his economic experiment has sparked fierce debate. While investors and the wealthy reap massive profits, everyday Argentinians find themselves navigating a deepening crisis.
Milei’s campaign rested on a straightforward premise: the government was the problem, and the free market would provide the cure. He argued that years of unchecked public spending and reckless monetary policy had fueled Argentina’s inflation crisis, which had exceeded 160% at the time. His solution was swift and severe – dismantle subsidies, slash government expenditures, and let market forces dictate economic direction.
For many Argentinians, weary of decades of economic mismanagement, Milei’s message was appealing. He presented himself as the anti-establishment warrior who could end the country’s vicious pattern of crisis and recession. But critics warned that his approach ignored Argentina’s structural vulnerabilities. Specifically, its utilization of state assistance to mitigate poverty and inequality.
A year into Milei’s presidency, the effects of his reforms are stark. The Argentine stock market may be booming, yet so is poverty. His administration has prioritized financial speculation and extreme neoliberal reforms, cutting social programs and slashing state funding for science, health, and education. Financial elites are thriving, but the working class is buckling under the weight of economic turmoil.
One of his first major actions was devaluing the peso by over 50%, a move praised by some economists as a step toward competitiveness. However, the immediate result was inflation soaring to over 200%, devastating the purchasing power of ordinary citizens. While inflation has since diminished to just 66.9%, the lasting harm remains. Aggressive spending cuts have led to skyrocketing utility bills, higher transportation costs, and the collapse of vital services.
The labour market, too, has been rocked by Milei’s policies. Over 185,000 jobs have vanished, and Milei’s proposed reforms would normalize 12-hour workdays with no overtime pay. Milei’s supporters argue that these sacrifices are necessary budget-balancing measures, but the cost is clear — poverty has climbed to over 50%, homelessness is rising, and desperation is spreading.
One of Milei’s most controversial proposals is replacing the peso with the US dollar. He argues that this will stabilize prices and restore economic confidence. While some nations have benefited from dollarization, skeptics warn that it’s a risky gamble with potentially disastrous consequences. Adopting the dollar would strip Argentina of control over its own monetary policy, leaving it unable to devalue its currency in times of crisis or stimulate growth. Additionally, securing the dollars needed for the transition would require significant borrowing or liquidating state assets, deepening the nation’s debt woes.
Dollarization could also exacerbate inequality. Those with existing access to dollars, primarily the wealthy, would benefit. Ordinary workers, paid in a rapidly devaluing peso, would struggle even more. Dollarisation is further accelerated by the dual-currency payment system in Argentina, which encourages the use of USD in electronic transactions, reducing peso demand and weakening the local currency while providing short-term stability for those with access to dollars. For the Argentinian poor already struggling with austerity, the shift could bring even greater instability.
As Milei’s policies intensify economic hardship, Argentinians are pushing back. Workers, activists, and opposition leaders have mobilized against the government, demanding relief from rising prices and job losses. Strikes have crippled public services, and protests have flooded the streets. The government has responded with force, deploying riot police and cracking down on dissent, framing protesters as barriers to reform.
This crackdown has only sharpened divisions. Supporters see Milei as a necessary disruptor, willing to make painful but necessary changes. Detractors argue that he is playing a dangerous ideological game with real human consequences. Despite consistently high approval ratings for much of his first year, it seems the tide may finally be shifting, with a recent Zuban Córdoba poll showing his approval rating had fallen to around 40%. Yet, while anger may be increasing, his vision — however painful — still holds appeal.
Milei’s economic upheaval has thrown Argentina into uncharted waters. His policies have undoubtedly shaken up a stagnant system, but the long-term consequences remain uncertain. For now, the world watches as Argentina endures this grand experiment in hyper-capitalism. But for those living through it, the stakes are very real — felt in every lost job, every empty fridge, and every protester beaten by police for demanding answers.
This is an article written by a Staff Writer. Catalyst is a student-led platform that fosters engagement with global issues from a learning perspective. The opinions expressed above do not necessarily reflect the views of the publication.
Edited by Shihun Lee
Alexander Morris-Schwarz is a third-year student at McGill University where he is majoring in Political Science with a minor in Communication Studies. Alexander is currently a staff writer for Catalyst and he is interested in international relations and imperialism.