I wish our US politicians had the courage to do this

 

The new President of Argentina has wasted no time since taking office in addressing the ghastly economic conditions left to him by his predecessors.

Argentina's new government says it will weaken the value of its currency by more than 50% against the US dollar.

It is part of the "economic shock therapy" that President Javier Milei says the country needs to fix its worst crisis in decades.

Economy Minister Luis Caputo also announced deep cuts to public spending.

They include a reduction in fuel and transport subsidies and freezing spending on some major government contracts and advertising.

Mr Caputo said he had inherited the worst economic legacy in Argentina's history and he was taking steps to avoid hyperinflation.

"We are going to be worse off than before for a few months, particularly in terms of inflation. And I say that because, as the president says, it is better to tell an uncomfortable truth than a comfortable lie," Mr Caputo said in a televised address.

Argentina is battling soaring inflation, with prices rising by around 150% over the last year. It is also struggling with low cash reserves, high government debt, while 40% of the population is living below the poverty line.

. . .

Mr Milei has already cut nine government ministries, which Mr Caputo said would reduce 34% of public sector jobs.

Speaking about the cuts to government spending for infrastructure projects, Mr Caputo said: "The reality is that there is no money to pay for more public works that, as all Argentines know, often end up in the pockets of politicians or businessmen on duty".

There's more at the link.

The tragedy for Argentinians is that most of them did not want the economic problems with which they're currently saddled, and had no part in their creation.  This was the work of political and business elites who did what was good for them, not good for the country.  Mr. Milei now has to undo not just years, but decades of official malfeasance that created the problems in the first place.  He also has to do so in the face of entrenched, bitter opposition from those who caused the problems, who want to hold on to their ill-gotten gains no matter what and will twist any and every development into anti-Milei propaganda in an attempt to regain power at the next election.

I hope Mr. Milei is given enough time in office to succeed;  and I hope ordinary Argentinians realize the need for his harsh economic medicine.  It's going to be tough for them - but they really have no alternative apart from national economic collapse, a South American version of Weimar Republic hyperinflation.  That's still a possibility if the entrenched forces that caused the problems manage to regain power.

Sadly, we need a healthy dose of the same medicine in the USA as well.  Unfortunately, we have so many dependent on our entitlement systems that they'll never vote to do it, and will scream blue murder if someone tries to force them to take the medicine.  I can only hope that Argentina succeeds, and that the people of this country have the sense to learn from their example and allow something similar to be done here.  If we don't . . .

Peter