Argentina’s new Libertarian president, Javier Milei, has reduced the size of government in half, repealed 380,000 laws, and legalized competing currencies. He is massively deregulating. Can he pull this off and save Argentina? We don’t know, but the following is a great speech. It’s a quick translation, but you can read the subtitles in the video.
In this video, Miles tells Argentines that “after decades of failures, impoverishment, and decadence,” they “formally begin the path of reconstruction.”
He said the new administration had spent the previous eight days concentrating on containing the crisis they inherited. They “designed a shock stabilization plan that includes a fiscal adjustment program, exchange rate policy that would stay true to the exchange rate and value, and a market and monetary policy that includes the healing of the Central Bank.”
Milei said they are doing their best to “reduce the tragic effects of what may be the worst crisis in their history,” which he says “is a product of decades of governments that have existed with a failed recipe because, as we have been saying for months, the problem is not the chef, but the recipe.”
“Those ideas that failed in Argentina are the same ideas that have failed throughout the planet because, everywhere they’ve been tried, they’ve been an economic failure. They have been a social failure; they have been a cultural failure. And on top of that, it has caused the lives of millions of human beings.
“That doctrine that someone would call left-wing, socialism, communism, fascism, and that we like to classify as collectivism, is a form of thought that dilutes the individual in favor of the power of the state and is the basic foundation of the cast model.
“It is the doctrine of thought, which is based on the premise that the State is more important than the individuals that make up the nation. That the individual is only recognized if he submits to the State, and that, therefore, we citizens owe obeisance to its representatives: the political caste. That means that individuals are nothing more than a means to the end of the State.
“It is a way of seeing the world which consists of the belief that a group of men is superior to the rest of the individuals and they, therefore, must be those who reign over the destinies of his compatriots. Its adoption starts from the idea that a group of bureaucrats sitting in an office can plan the lives of millions of human beings, considering desires, capabilities, preferences, and circumstances.
“It is a doctrine that considers the politicians, consequently, are omnipresent, omniscient, and omnipotent. This means that, in essence, it is a doctrine that considers the politicians as God.
“We have come to tell you that politicians are not only not God, but they are the cause of our problems. They are the cause of our problems because, for decades, they have defended these impoverishing ideas that we talked about while they became increasingly richer because of the merciless implementation of these ideas for more than 100 years, which took us little by little, step-by-step to the economic hell that we live in today. The process has been slow, and on this path, we have become accustomed to, and taken as normal State interferences, that are the causes of our problems.
“The result is the country that received the worst inheritance in history, a country with a consolidated deficit of 15% of GDP and where 5% of the deficit is from the Treasury and 10% from the Central Bank. A country that spends so much that it cannot pay it even with the highest tax burden in the world, a country without reserves in the Central Bank, and with its credit confidence destroyed.
“A country that has issued money for 20 points of GDP and that, to finance that public spending, has engaged in unbridled monetary admission, now faces its worst inflationary crisis in 40 years. A country that was on its way to crashing into inflation of 15,000%, which required an urgent change, of course to avoid disaster. That change begins today.
“An essential aspect of the failure in the last 100 years is the interference that the State has had in the lives of citizens; from this belief that politicians are superior beings that must govern the destiny of each of us, an institutional scaffolding emerges that says that no one can work, trade, move, or be educated without their permission.
“While in a free society, everything is allowed, what is prohibited in a collectivist society like Argentina, everything is prohibited, except what is allowed by politicians in clear opposition to the spirit of our liberal constitution that sought to restrict the arbitrary power of the State and defense of the life, liberty, and property of individuals.
“During the last 100 years, politicians have been busy expanding the power of the state to the detriment of good Argentines.
“That expansion of the State has been accompanied by the biggest destruction of the wealth of a country ever on record. Our country, which, at the beginning of the 20th century, was the first world power, over the last 100 years has been in an endless cycle of crises that all have the same cause at their origins: fiscal deficit.
It’s a brilliant speech, and we should heed it.
ItJavier Milei with an incredible speech…
Not talking like a politician.
Just a man.
Announcing massive deregulation of the economy and condemning what got Argentina to the situation it’s currently in:
Government overreach + reckless spending.pic.twitter.com/0PqSWncAK7
— Geiger Capital (@Geiger_Capital) December 21, 2023