Workers handing out meals at the soup kitchen in the Villa Soldati neighourhood of Buenos Aires. — ©️2025 The New York Times Company
AT home and abroad, Argentina’s President Javier Milei is a man with plenty of fans – and not just any fans.
Milei, a right-wing libertarian, surprised many as the first world leader to meet President-elect Donald Trump after his election victory.
At Trump’s Mar-a-Lago resort in November, the praise was effusive.
“The job you’ve done is incredible,” Trump said at a gala. “You’ve done a fantastic job in a very short period of time.”
Back home, many Argentinians seem to agree. Slightly more than a year into office, Milei enjoys a 56% approval rating, making him one of the most popular presidents in Argentina’s recent history.
“This is the president that God brought for the Argentinians,” said Marcelo Capobianco, a 54-year-old butcher in Buenos Aires. “He brought back hope.”
But for all the accolades, Milei’s brutal cuts to public spending – including subsidies for bus fares and soup kitchens – have pushed over five million more Argentinians into poverty. Yet these measures have also achieved what once seemed impossible: tackling the world’s highest inflation rate.
Monthly inflation has dropped from 12.8% before Milei took office to 2.4%, the lowest in four years.
Argentina’s government revenue now exceeds spending for the first time in 16 years. Bank of America hailed his stabilisation plan as “working better than expected”, while the IMF forecasts annual inflation will fall to 45% in 2025, down from a record 211% in 2023.
“Happy times are coming in Argentina,” Milei said in a recent address marking his first year. He promised “sustained growth” in 2025, assuring the country’s sacrifices “will not be in vain”.
Milei’s economic triage has, however, come at a painful cost for many ordinary Argentinians.
Milei speaking at an America First Policy Institute event. — ©️2025 The New York Times Company
State spending has been slashed by a third, ending price controls that kept groceries, utilities and public transport affordable.
Margarita Barrientos, 63, runs a soup kitchen in Buenos Aires.
“Every day, we have more people who come to eat,” she said. “Right now, it’s as if we don’t have a future.”
Retired taxi driver Roberto Bejerano, 68, shares the disillusionment.
“They’re laughing in our faces when they say we’re better off,” he said. “You don’t see it in your wallet.”
Nevertheless, Milei’s harsh medicine has earned grudging respect from others.
Miguel Valderrama, a 40-year-old shopkeeper, recalled the chaotic inflation of the past.
“There was a price in the morning, and at noon everything increased again – and again two days later,” he said.
With inflation stabilising, Valderrama can now plan inventory without constant price shocks.
Milei’s rise followed decades of economic boom-and-bust cycles.
Once among the wealthiest nations, Argentina fell into economic disarray due to years of fiscal mismanagement, mounting debts and corruption. Milei’s campaign rhetoric blamed politicians he derided as “thieves” and “monarchs”.
Critics doubted whether a former television pundit, who styles himself an “anarcho-capitalist”, could navigate Argentina’s complexities.
His more radical campaign promises – including abolishing Argentina’s central bank and dollarising the economy – never materialised. Instead, Milei’s policies have proved far more pragmatic than anticipated.
“The initial outlines of Milei’s programme were much more reasonable than his campaign rhetoric,” said Marina Dal Poggetto, executive director of consultancy EcoGo. “They were pragmatic, very pragmatic.”
Still, Milei’s austerity measures have angered many.
Pension cuts, rising prices and slashed university budgets sparked massive demonstrations across the country. Poverty rates soared from 40% to 53% within six months.
Even Argentina’s famed love of beef is under strain, with consumption falling to its lowest level in 28 years.
Analysts warn that Milei’s aggressive cuts could undermine long-term growth. Reduced investment in education, research and healthcare may weaken Argentina’s social and economic foundations.
“His focus is on stabilisation,” said economist Martín Kalos. “But if investment doesn’t resume, growth will be unsustainable.”
Outside Argentina, Milei’s boldness has drawn praise from populist leaders and figures like Trump and Elon Musk.
Trump reportedly told Milei, “You’re my favourite president.”
Musk lauded his progress on social media, while some American conservatives have even suggested adopting “Milei-style cuts” to tackle US government spending.
But at home, Milei faces a ticking clock. Many Argentinians, exhausted by decades of economic turmoil, are willing to endure hardship for a chance at stability.
The question remains: for how long?
“People feel there are certain things that had to be done,” said Mariel Fornoni, a political analyst. “Then, there’s the question of how much their wallets can take.” — ©2025 The New York Times Company
