阿根廷通往经济自由的坎坷之路

The ascent to power in Argentina of the first avowed libertarian, in the person of Javier Milei, was seen not only with excitement by many libertarians but also as a moment of truth. Not only did it show that it was possible to get a majority of the electorate of a large country to vote for a radical agenda of freedom, but it also suggested that libertarians might finally be able to show the entire world that the unhampered free market is not only possible, but also highly beneficial for any society.

It is not surprising, therefore, that both libertarians and statists are looking closely at this latest Argentinian experiment, which began early 2024, for signs of Milei’s success or failure. Libertarians should feel comfortable with this expectation, considering the solid theoretical foundation of the Austrian School of economics that inspires Milei.

There are a couple caveats, however, that need to be made in this respect. First, the difficult transition from a statist society to a free society should not be disregarded and cannot be blamed on libertarianism itself. It must be said that the practical, political process of getting to an unhampered free market has not been a main focus of libertarian thought. Second, the road to freedom could be obstructed for any number of practical reasons, such as external or human factors, wholly unconnected to libertarianism. For instance, the elected leader and the government could be flawed and the political class could resist change.

Generally Positive Results After a Rocky Start

But the austerity measures—cuts in subsidies, public sector job reductions, large devaluations—inevitably brought social costs, initially plunging millions into poverty. Yet, the poverty rate then fell sharply in the second half of 2024, dropping from 52.9 percent in the first half of 2024 to 38.1 percent. Unemployment in Buenos Aires Province climbed to 9.8 percent, higher than 2023.

The Argentinian Peso: A Story of Mismanagement