Can it be "replicated"? Do we even have another "Argentina" to replicate it with? "There are four kinds of countries in the world: developed countries, undeveloped countries, Japan and Argentina" - Simon Kuznet
most latin American countries are either drifting to or already are in Argentina station so i would say so. addition maybe Zimbabwe can use this model. and then the west can also start taking notes from Milei because god knows how much time we have left until everything collapse on us.
I’ve got a friend in Buenos aires and he says that crime has soared due to people not having money for food and general poverty going up a lot. So there is a cost to all this.
@ my friend lives in ricoletta which is a good neighbourhood and says the city has massive problems now, especially with homelessness and crime. Not sure how you can call that a success
it's a long process until the market can adjust and create more jobs to fill in for lost government/government-backed jobs. it was the same thing for post-communist countries in the 90s. unemployment and poverty soared and it took years to get back up to communist levels, and ~10 years to start breaking up above that. in Argentina's case it's going to go faster since the poverty level and inflation is much more lackluster than what it was in communist countries
won't stop them releasing a video about Milei every other month and virtually coming to the same conclusion, dogwater analysis I'm amazed anyone takes this channel seriously
Price of goods doesn't come down, that would be deflation which isn't a good thing, ask Japan. Instead wages grow to match these increased prices. Also the poverty rate has begun to fall as real wages begin to rise. Recovering from decades of bad economics takes time.
@@romitkumar6272 we'll see how average wages perform in the next year, but my original point is that the media like tldr are making it sound deflationary when it's as you described it
Telling the truth to the public is one of the greatest things a politician can do. Melei has been successful because he has been honest with the people, and although his plan has faced setbacks, they understand and still accept him. This honesty fosters harmony.
But credit has to be given to the argentine public for this. So many people can't handle the truth. The UK Public can't handle the new the current administration already because we like to have have our cake and eat it too
@@SASMADBRUV7True but even the Argentinians only got it after multiple bankruptcies and decades of catastrophic economic policies. Does that mean there's no chance of fixing it until you've it the bottom?
@SASMADBRUV7 no we can't handle it because labour have gone back on most of their promises and then just tried to blame the Conservatives. Which funnily enough is pretty much what the Democrats did the last 4 years in america. They just denied any problems, then when the problems they caused became too obvious they blamed the previous administration
It's not just about talking anymore, but doing too. People pay more attention now to what politicians say and do. With the internet, society remembers everything-what they said, what they did, and what they thought about different topics. So when they say one thing but do another, people can easily see how hypocritical they are. That's the cultural impact that Milei is provocating. Of course, society doesn't have to deify him, but listening and think about what is he saying, cause is a very cult person about economics
Brazil was on a similar death spiral in the 80s and early 90s, whichonly ended it with the Plano Real and the introduction ot the Real currency. if Milei wants to replace the Peso, maybe he could've started making the Blue Dollar exchange rate the precursors to a new currency, like Brazil did in 1994
yea minute when I heard about no money for local govs, infrastructure projects halted and government ministries dismantle: I was "WTF this is gonna destroy the economy, GDP and quality of life, especially the local government finances. Then the video mentioned GDP, Poverty and people in the comments tell of purchasing power issues. I guess this days financial genocide of your country population to lower inflation is equal to saving economy somehow. What a bull crap. I bet TLDR gonna say same things about Trump tariffs after they destroy American purchasing power.
@@olracorig As you might have seen in the video, it spiked at first and has now started falling and is below 50% currently. Just like he said it would.
its easy to get inflation down when nobody can buy shit anymore doing it without crashing the economy is hard meanwhile brits are still trying to recover from the short term pain caused by thatcher in the 80s and germany from schröder
Costs needed cutting but they're celebrating too soon. Austerity isn't the magic tool certain economists try convince it is. He's sobered up and walked back from the sinophobia trash talk and BRI is headed to the rest of South America so he had no choice (rather than chalking it up as being led by foresight).
Modern Economics be like, "Yeah everyone is poor, they work for slave wages, they can't afford basic needs, and their biggest export is their own exploitation.... but numbers go big so its great!"
Modern communist astrology be like: "Yeah everything is getting worse and worse and everyone is getting poorer and poorer but if we just print another 2 gajillion dollars and nationalize 300 more businesses and raise the minimum wage by 50 dollars it will solve everything this time trust me every other time it ruined everything but those were all just a fluke"
@@UrsusUrsa would you rather your state to fail and go bankrupt, putting 100% of the population in poverty? That's how's nazis came about, you don't support that right?
@wisdometricist880 That's very good and all but...nobody was talking about or defending communism so you automatically going for the strawman defence of "communism bad tho" shows everyone that you don't actually have an argument and are just saying stuff randomly
I don't think any other country needs to replicate Argentina because no other economy in the world is like it, and it was way deep in the hole. However, many countries such as the US can certainly learn lessons from what Milei is doing.
@@Zyzyx442None of these countries are even close to argentina. Norway also has a massive sovereign wealth fund but does have a currency problem with accounts for most of the drop in Real wage growth.
I'm not sure how you save a people by subjecting them to avoidable suffering. You can combat inflation and grow an economy while.still considering people's living standards. This video is stupid
I think this video should have been saved until we could see whether it was actually successful or not. Milei's "apparent success" could well turn out to be a blip before a massive downturn, and Argentina is still in recession, so this seems premature.
Less printing of worthless money means less inflation. Its ok to have less money when theres less inflation because then the small ammount of money you have actually gains value. When theres big inflation you can have a big ammount of money but it will have almost 0 value.
Yes and no, I think that having a fiscal surplus, taking real measures to remove the dollar restriction, stop printing huge amounts of money and renegotiate debt payments to stop increasing the interest you pay had a greater weight than the drop in consumption. Today consumption is recovering and inflation is not soaring as before.
No, it's because they aren't financing government deficits by printing money anymore. Households don't have much to do with this. Governments lie to people and try to blame inflation on them or businesses to dodge responsibility.
yeah, tell that to Venezuela. People there have had no money to spend on basic needs for years yet inflation doesn't give half a flying fuck and keeps rising. That is not how inflation works.
more than half the country's in poverty! how much of those people are captured in the approval ratings? did they only poll people from the upper middle class and higher?
Don’t forget that Shock therapy has happened before and the end outcome is always massive wealth inequality and huge spikes in poverty. This will end poorly for Argentina.
The US economy is not the Argentinian economy. It is not facing the same problems as Argentina’s is. It’s more likely to make things worse rather than better for the US.
And yet Milei has yet to show a single month where Argentina actually upped it´s industrial production ... In March alone Industrial production fell by -21.4% ... Meaning Argentina just produceses less. The previous Gioverment actually left him with a slightly growing industrial Production sector (+0.4% in Nov 2023) Household poverty Rates are now above 50% (up from about 30% under the previous Goverment) By the way with that industrial growth (or rather degrowth) rate It is even behind Germany ... The nation you guys like to call "the dead men of Europe" I would also question rather or not the wage growth is Milei success or it didn`t happen despite Milei ... after all he is working against workers and there wages ... introducing anti Union laws and so on ...
the wage growth is easily explainable. if you first cut real wages by a lot (huge inflation spike where wages didn't keep up), they can then increase by a little bit. if you're a narcissistic idiot like milei you can then sell that as a success.
not extreme poverty just poverty. the poverty rate is median income/2. poverty happens in capitalism because people are paid equitably not equally. it makes no sense to use normal poverty to determine anything
Poverty is only a line. Do you think modern capitalist countries are like not poor just because their government spends some money to social things? Not, they have working capitalism system. Argentina was undeveloped country because of ineffective government, it's can't be fixed just with printer brrr
@@yagzefegames7957Capitalism only works if the population can afford to buy things. In the short term you can get a boom by letting the rich keep all the profits and toss it about between investment firms, but if people can't afford the products the economy eventually starts falling apart.
Poverty rates haven't been updated yet, but the Juan de Mariana Institute says it's already to pre-Milei rates of 45%. Juan de Mariana had already predicted the 1st semester's poverty rate and many other data, so it's safe to assume that Milei's high approval rating in the last month comes from the economy starting to recover in the last couple months.
Sure, but bear in mind the line that went up is a symptom of changes that inequivocally lead to the generation of jobs, and that same line kept going down with pretty much the same poverty levels. That 40% from the previous government was bogus: that government belonged from a party that has made faking metrics standard practice. In reality it was close to 50%. There's a reason his approval rates are so high.
The only reason this "worked" in Argentina is because the bureaucracy is genuinely bloated an inefficient - something that's unique to Argentina. This can't work on, say, the U.S., because contrary to popular (propaganda) belief, the bureaucracy in the U.S. is quite efficient. You don't just become the top economy in the world with a bureaucracy as bloated as Argentina's. Also, it remains to be seen if this economic strategy even really works. Inflation might be down, but a LOT of people have reportedly became a LOT poorer because of it. Numbers going up/down means nothing if the median worker in even Buenos Aires is worse-off than before.
@@penzorphallos3199 -someone who has no idea what they are talking about. Argentina is a country that easily could be rich, but shot themselves in the foot again and again for 70 years.
@@penzorphallos3199 not to this level, it isn't. We have several provinces where close to 40% of employed people are government employees and a lot of the rest work for companies contracted by the government to work on corrupt public projects (of course this guy tanked hard in those provinces). You have no idea how bad it can get here.
Declaring this “worked” after a few months of numbers improving is a bit early. This could never work in the US either because if the president cut the value of the dollar in half people would riot in the streets. Americans are spoiled and have no idea how good they have it.
As someone from Southeast Asia, I don't think someone like Milei can succeed here. You're going to get protests everywhere, especially from the lower class, who don't understand the economy that much; they just want everything to be cheap. I do appreciate that Milei is honest about saying the country is going to hurt before becoming better again.
@@azleadam9239 Argentina is in the blink of bankruptcy. If they still had the old government system, they would be bankrupt soon. They wouldn't even pay back the interest on external debt. Radical problems need a radical solution.
milei is honest about saying it's going to hurt. he's lying about it becoming better. of course he will celebrate it as success if gdp starts growing again and saying "i told you so". but gdp will still be less than before he took office. if you first break something, then fix it halfway you haven't done yourself a favour.
For developing nations that export raw materials and stuck in the crippling cycle of ever growing food/fuel subsidies, Argentina might pose a good lesson. For developed service economies, a great way to hobble them.
The GDP drop by 4%, that is bad in any economic term. 40% of the population is now below the poverty line up from 15%... This is insane to say the least. Macro economic isn't good.
The poverty rate was just revealed, if people depend on government habdouts to survive they are already poor. What matters is that povery has been going down as a result of people actually getting private sector jobs.
maybe it's crazy what I'm about to say,but milei wasn't the one who caused 50% of the poverty. when he took office the rate was 40% now it is 49%, not so much in comparison eh? Even so, the spike in poverty comes from the devaluation of the peso.
It’s always about GDP, are we ever gonna measure a country’s economy as per its inhabitants’ quality of life? Nah dont matter, who cares whether the hoi polloi can eat, look big numbers yay
Gdp and quality of life tend to correlate though. And a strong economic base allows for quality of life to increase. You can't really improve quality of life without putting focus into productivity which is what gdp is
@@thomcowley7332 western gdp increase in the 19th century resulted in the "western lifestyle" the highest standards of living in the world (currently). This is literaly why people migrate to the West and not elsewhere. It takes time and it is diffidult, but yes when numbers go up people get richer and quality of life increases.
I would also like to point out that quality of life is subjective. You measure something that can be objectively measured and that is the economic output of the country.
@@Dan01126thatcher never balanced the budget. tax cuts do not exists when you run a deficit. you either replace real taxes with hidden taxes by printing more money or you pass the debt to future generations with loans. thats what makes argentina differant
@@Dan01126 He's literally unironically doing the EXACT opposite of Thatcher by putting Argentina through short term pains for long term gains. Like, I don't know how on earth you're getting that incorrectly when basically all measures of the Argentine economy is suffering right now in order to completely restructure it to be better and more sustainable
What is there to replicate? He's doing exactly what other countries are doing but far more aggressively, and the consequences are for all to see with a basic Google search.
What other country is doing the same thing as him? Many claim to do the same thing as him but they maintain high fiscal deficits or print large amounts of money which is far from what he is doing.
i know buddy, but it has to be this way, here in Brazil, we went through that in the 90's, it was painful for everyone, but today Brazilians are better off.
RIGHT? Every day people get thrown into poverty and lose government benefits, but because numbers look pretty on a graph now we’re already saying he “saved” the country LOL. So out of touch
Most of this was caused by cutting spending of everything, which wasn´t that hard. If I decide to improve my personal budget by cutting food, water and electricity I am sure that my budget will have magical surplus too. (although soon I will die by thirst and hunger, but thats problem of future me...) He cut healthcare, education, public projects, sold government companies... People knew that this will give him more money and in the short term improve the situation. What worried people were mostly long-term results of this policy and we still don´t know what will that look like, so its pretty soon to praise him and want to do same thing everywhere else too.
It Isn’t soon to praise him. Poverty is down (it’s still high, but it’s less), inflation is down, salaries have beaten inflation, the economy will grow 5,5% next year and millions of dollars will come to the country via investments. The first 6-8 months were tough, but you can see the change. We can see that this sacrifice will pay off.
@@pepinillo2575 It has been a year since he got to office, that really isn´t a long-term effect I talked about. Cutting education won´t magically make educated people disappear, education takes years and even if he completely cut any education effects would still take years, probably dozens of years to show in any significant way, same with most other investments.
Yep, they should've elected the same guys who have been keeping them poor for the last 50 years so they can keep printing money instead of trying to fix the problem
@@Chrissy717 2.5% increase means you country has more wealth circulating than than before. It is minuscule and not distributed evenly but it is better than a shrinking economy. Do you want less wealth instead? Because that was peronism. Btw ask yourself where that wealth previously went. Check Switzerland maybe.
@@wisdometricist880 no, I definitely agree with you. Sometimes you have to elect someone who will make everything worse for you to realize your mistakes. Look at Germany. I bet you there were people in 1933 talking about how the social democrats were making everything worse and electing them again would be madness
@@penzorphallos3199 Okay, but by that logic, people in the US should have been more than happy with Biden, because "line in US also went up, by a lot!" Wealth for a country means nothing if the people don't get to see any of it. Just look at Syria. After 2016, their economy also grew by a few %. Did that mean Assad started to stop stealing all the wealth? No.
Yeah, 7 children out of 10 out of school and in poverty, an elderly man tries to set himself in fire because now he cannot access medicine he needs to live, low retirement pensions get lowered even more, working class cannot make it to end of month. but inflation and macro economical metrics are up, yay Argentina! Viva la libertad caraxo! Effin' disappointed in you TLDR, You are better than this.
Bad take. The point is under the old system it was unsustainable and trending worse and worse. There was pain in the reset, but now the system is sustainable and trending better.
I think that was mainly due to how he was being portrayed. I mean, he was pulling some stunts like waving the chainsaw around and the ¡AFUERA! video, but it’s clear that a large chunk of Argentines agreed with him enough to vote for him in the first place.
This framing is genuinely incredible. Poverty up, quality of life has gone down, the already meagre support the people had has been systematically stripped away but somehow this is a success because look at this graph.
Problem was government was spending huge amounts on support and people were getting poorer. If all he does is defeat inflation that is a boost. With inflation your cost of living rises and wualiyifvlife drops.
Poverty is going down, actually. In February it peaked around 57%* (mostly inherited from previous administration) and from there on it just continues on a downward trend**; Around this time last year, poverty was around 45%, whereas now it is below 45%. Furthermore, both the AUH and the "Tarjeta Alimentar" were doubled in value with inflation taken into account**** now with both practically covering 100% of the food needed to sustain/feed per month a stereotypical family of two parents and two children. Prior to Milei's administration, both the AUH and the Tarjeta Alimentar barely covered the 55-60% of the "basic food basket" (idk what term u guys use in english). Also Milei got rid of the intermediaries that would force the poor to go protest in exchange for the money the government gave them. Awful right? If the poor that actually needed this income refused to go to the protests AKA "piquetes" (ant1fa kinda protest if you know what I mean; disturbs, setting stuff on fire (actual cars), breaking in public and private property, battery, stealing. You name it. ) they wouldn't release their money and actually charge upfront a certain percentage of the money destined for the poor******. That's over now. Recession IS expected, think about it as not that dissimilar from the pandemic; it is a price that society must pay, in this case, in order to restructure the macro-economy; which sustains genuine economic growth in the mid/long-term. We're already starting to see progress and bettering compared to last year's economy. And yes, the graphs are important. Do not focus on a still-frame; try to see the entire movie and most importantly the direction we're set on. That of economic prosperity. Can you imagine your country with +250% annual inflation? We're getting rid of that, the actual not legislated tax that harms the poor the most; as they can't keep up with the ever increasing prices and their wages not even updating at the same rate, lagging behind. Now you can somewhat expect the prices during the following weeks to remain stable. I should mention that the wages/salaries are virtually 100% covered since the harsh recession we went thru. Heck, even updating faster than inflation itself now. ******* It's only been a year, we're a "third world country". Don't expect us to become Ireland or Israel (economic-wise) in a year man. We're a poor country and structural and harsh reforms are a must in order to finally break out of poverty. It is paying off already. I'll comment the sources in this thread. Chances are, youtube will delete the comment cuz of links as a security measure. I know my grammar and phrasing or use of commas are not quite right, I'm still learning. Thx for reading if you did.
@@nicolasrodriguez5054nicely said. It's hard to articulate these ideas to some people who are just like "but there's less 'free' government stuff, therefore bad!!!"
While talking about improved GDP figures, lower inflation or a better economy its always good to ask "For who?" . Cutting government spending may look good on paper the same way cutting on groceries will look on your bank account but the question is, are you better off without food??
The country was in a perpetual state of getting in debt to give money to poor people, milei is fixing thr economy wich will help poverty in the long run, yes poor people are going to have it worse fot 4/5 years but the sacrifice will be worth it
Maybe think about how previous policies and goverments even brought them to that level and maybe u'll understand why what he's doing is actually a success
@theemperororsomethingidont6897 People are blaming milei for the mistake of previous government, it's rather crazy how can seemingly people criticize without truly knowing they talk about.
Milei campaigned on a platform where he told the electorate that if they elect him, there will be economic upheaval for a while due to the reforms necessary to improve economic prospects. People elected him fully aware of this.
@@yagzefegames7957 Higher inequality literally leads to more suffering for ordinary people by nature of shoving more money into the hands of fewer people.
@@tedarcher9120 No, I'm not. It was less than 26% in 2019. Just search Argentina poverty rate on statista. Can't post the link because RUclips keeps removing it.
Why does TLDR have a jojo approval of milelei, where Argentina's prospects seem reversed every other month. Notice how many news sources have talked about Ukraine in the same jojo way in the last few years.
Whats important is the long term impacts of Mileis policies. Fiscal debt is one metric. If all this money goes to the rich or multi-national companies. The cuts to regions may also lead to some regions falling back even further behind others. The ideology serious gives me vibes of being "abolish the police" vibes from a conservative position. While I think its good to have strong business but if its not local but large international companies it undermines the market. What strongly undermines Mileis libertarian credentials to me is his treatment of coops. For those who don’t know. Coops are companies owned by workers. They vote for their leaders in the company and every worker owns shares in the company. Since the late 90s Argentina has a big coop sector. This was helped by the government allowing workers to buy companies they worked in if they go bankrupt and the traditional owners resign. This makes Coops unusual market socialist companies that can participate in capitalist economies. Sadly there is contradictory information. Mileis government seems to have suspended licenses for some Cooperative created between 2020-22 due to not reporting balance sheets. It seems like this is only targeting Coops and not all companies so it seems to be based on politics and not economics. The government claims they are streamlining the process of setting up coops from 2 years to 2 months, while some coops claims that they are given absurd deadlines after the government changed its required documentations. On the other hand Aerolíneas Argentinas could be given to workers. For context: the company was nationalized until 1990, then privatized until 2008, and again nationalized since then. The company runs a laughable deficit and heavily relies on state subsidies. Milei now wants to give the company to workers. Ironically, the workers are now striking against this because they feel like Milei wants to deliberately give them a company everyone knows is failing. On the other hand it would be funny if they somehow restructure it. However now private companies are bidding for the airline so whatever Milei wants is massively unclear. Coops usually outperform non-democratic businesses in times of crisis as workers are likelier to take temporary pay cuts to avoid firing or selling assets which in the future benefits the survival rate of the company. This could ironically help Argentina because they are like 10% of Argentinian companies.
He fed on the poor to feed the rich. You may want to wait longer to see if its truly saved. The people might have more to say about it if their lives dont improve significantly.
We've seen the outcomes of these policies in countries like America. 3rd world outcomes for the population in so-called third world countries. So bad people are going after health insurance ceos. It's not success.
It's always about relative to before. And well... We are talking about Argentina here. The status quo before that was not sustainable. So, radical reforms were mandatory. Radical always means pain. And the current results within just one year are kinda impressive, not gonna lie.
I’m old enough to know when this channel kept talking about Milei gov being a disaster, things must be doing very well for this channel to admit it. What’s next are they going to talk about Trump doing a good job? Crazy
@@penzorphallos3199they would have been poor anyway without the government intervention. So let’s take the government intervention away and make them poor, because we want numbers to go up!“ fucking insane.
It is not an experiment. What Milei is doing has been done before and is known to work in the long run. For example, Poland did it in the nineties of the past century.
The fact that his policies are considered an enormous economic success, while he put large numbers of people into poverty, is a good example of the problems with the ways we measure economic success.
The same recovery can be observed with the Socialists in Spain, the Conservatives in Italy, and the Libertarians in Argentina. The political ideology matters less as long as there is competence in economic policy. Donald Trump faces a different challenge: the U.S. economy is growing under Joe Biden. His focus must be on addressing the cost of living and social inequalities, areas where he could offer corrective measures.
Economic ideology matters. Real rational economic policies comes from the right/centre because Marxist and keynsian economics are fundamentally wrong. The "right" can be deluded by Marxist rhetoric as well like thinking protectionism somehow makes a country rich.
I came to Argentina a year ago as a german, and the exchange rate has been getting worse for me since the pesos catch up in value. most young people here support mileil, they want to get a job and for that the industry must prosper. There are many homeless on the streets, but overall i would say germany nowadays is much more dangerous than argentina. I think his politics will be a success, withdrawing from socialism is like withdrawing from alcohol cold turkey. It gets worse before you get healthy in the long term.
I spent a lot of time in Buenos Aires. In the 1950s, “where do you want to live? Paris? New York? Buenos Aires? “ only one foreign Harrod’s ( B A)(now closed)
So he traded economic power and individual wealth for a balanced budget and a trade surplus. Sounds like Agenda 2010 to me and that one didnt work so well in the long term. For those who dont know Agenda 2010 was a german austerity program in the early 2000s that cut social spending and weakened unions to reduce wages. It was considered a success as it reduced unemployment, which was its main goal. However unemployment is now also measured differently and its actual success in that regard is controversial. What is not controversial is the positive trend of the economic indicators that followed, with improving exports and economic activity, this just didnt translate to the average person, due to weak unions. Now we have a problem with weak domestic consumption causing the economy to stagnate, while the reliance on exports makes us susceptible to foreign tariffs. The budget surplus in the following years was also accomplished by delaying infrastructure maintenance, this in combination with relatively low wages caused the productivity to stagnate, which is a problem when fewer and fewer working age people are supporting a growing number of pensioners. Oh and our Infrastructure is also trash now, public buildings like schools are collapsing... TL:DR: just because the crash happened like you predicted does not make your recovery successful. Good that you dont make videos about economics, right ?
Argentina is a weird case, a rich nation 100 years ago has become poor but has attempted to live above it means for decades, the hardest part of this is basically accepting and restructuring the country so it can actually move on from its cycle of perpetuate economic death
Im pleased to see Milei appearing to finally pull Argentina away from it’s unusually creaky system. It doesn’t hurt that he is an actual economic expert underneath the theater. Proud of Argentina to realize they could not continue as they had.
@herlocksholmes9146 I'm not a haunch supporter of Milei or anything, but if the government was artificially keeping the poverty rate "low" for political gains, it's reasonable that it goes up initially when things start to rationalize. 41% is already not an acceptable poverty rate. If the government creates an economic death spiral to keep the poverty rate at 41% instead of 53%, I wouldn't say it's better. Let the economy find its flow and when economy gets better, more people will be out of poverty without depending on government. That's the idea at least. We'll see.
Why would anyone want to replicate this? Especially in wealthy EU and US. Argentina had no choice but to do this, and Millei is an actual economist and not a politician
@@nuzayerov this is what ideologists say, but at this point there is no signal that things are getting better and the economy of Argentina is going to thrive next.
@@AnonymousBosch3158 it's shock therapy, which has already failed in states like Russia in the 90s and brought inmense pain, Argentina is "fixing" its economy by demolishing the middle class, it'll end in tragedy
A couple of caveats: - Exports: YoY agricultural exports are not comparable because last year there was a drought so the exports were always going to be better during this year. Also the pipeline network that allows the gas exports from Vaca Muerta was state developed, and it opened by the end of last year. - Wages might be rising now above inflation but they are still below inflation YoY because of the huge spike at the beginning of the year. - The "Big chainsaw plans" is missing some of the big components like cuts to pensions (indirectly by lack of adjustment), funding to public hospitals, universities, energy and transport subsidies, etc. which represent way more in cuts than abolish ministries. Now opinion part: Guys each video of Argentina you make gets worse. At first I was happy of you mentioning my country but for this quality of work I'd rather you skip it all together.
@@JeffBilkins Booming economies tend to create an abundance of new jobs (unless the booming economy is due to outsourcing of course). So in time I would expect this to change.
Unfortunately another Millei-style success story in the UK would require our electorate to actually internalise that big states constrain the economy and that we can't have "all the free gibs" that we're routinely bribed with by short term-thinking politicians.
You're showing that the poverty line went from about 35% , with downwards trend BEFORE, to nearly 55%.... During Milei... But it got down to 50%.... Which is still WAY MORE than before Milei.... How on earth is that a "Success"....? If Milei did something, he undid previous progress and accelerated poverty...
He's a libertarian, but doesn't understand the following, "one man's freedom is another man's chains." Ultimately it comes down to character flaws, especially greed and power. You can see it in the UK with Grenfell Tower....slack regulation because of massive underfunding, allowing cheap options to be made, to maximise profits ending in the Tower burning and deaths. Regulation and their implementation are necessary because people are not virtuous. Get ready for the scandals to hit Argentina, as the rich scam the country.
You guys can be really ridiculous sometimes. Argentina has a 50% poverty rate right about now. Nothing that he has done can offset the amout of lives that will be lost (or made so much worse). Also we tried shock therapy before and every single time it has lead to growth in poverty and shrinking of the economy. I guess i just have to learn to skip your economics videos
There’s a lot of things that Argentina will sacrifice in the short or even in long term. For instance the large social safety net will be gutted as well as many other government services like healthcare and education. Also having a small government could make you vulnerable to external or internal crises which could cripple a developing nations like Argentina. In conclusion whether you want a big or small government it doesn’t matter to me what matters is what works.
I always hear conflicting news about Milei, one minute he’s the most hated man in South America and the next minute he’s a Christ-like saviour who saved his country. Which one is it 😂
A country is not just numbers. Behind the figures you call 'an economic success,' there is an increasing poverty rate, declining social services, and other struggles. A country is not a company; its purpose is not to maximize profit. A country cannot take drastic measures that put the lives of more than half of its citizens at risk.
Isn’t that impossible? The countries with a trade surplus need to have countries with a trade deficit to trade with. Also, some countries just don’t produce enough.
I'm honestly happy for the Argentinian people if this pans out. I can not explain why but It's just kind of infuriating to see that someone so outwardly unhinged is in fact seemingly incredibly competent, and the fact people trusted the process, went through it and it worked (so far). And the fact it wasn't sanctioned half way through the process or there wasn't an American founded coup attempt is very interesting. How often have we done something similar but decided to stop half way left things in shambles and then concluded the thing didn't work? Makes me think that an economic doctrine properly implemented on either side of the economic spectrum would work as intended if we just trust the process.
I badly want to believe you, but please state a successful leftist doctrine. Capitalism has its faults, but the alternative has proven time and time again to be unsustainable
He flipped the deficit by firing everyone and increasing the unemployment rate from 6.18% in 2023 to 8.45% in 2024 Bro is this channel actually kidding? April fools tldr?
It cannot be replicated simply because no other country was like Argentina. Not to mention the raw materials export is a whole another story of its own.
it cannot -- it is a massive wealth transfer from the bottom 80% to the top 1%. More than half of Argentina will remain permanently in poverty, if that figure doesn't continue to grow -- this is not new news, it is what happens whenever a government imposes this kind of austerity.
Can it be "replicated"?
Do we even have another "Argentina" to replicate it with?
"There are four kinds of countries in the world: developed countries, undeveloped countries, Japan and Argentina"
- Simon Kuznet
There would be no Japan in 100 years due to lowering birth rates and climate change
most latin American countries are either drifting to or already are in Argentina station so i would say so.
addition maybe Zimbabwe can use this model.
and then the west can also start taking notes from Milei because god knows how much time we have left until everything collapse on us.
any underdeveloped and developing country with chronic deficit?
@@alevegaliolios and those wishing to go down that route like the current west
Venezuela and many others. I wish we would have Javier Milei in Poland.
I’ve got a friend in Buenos aires and he says that crime has soared due to people not having money for food and general poverty going up a lot.
So there is a cost to all this.
It is called a "success" nowadays 😢
@ my friend lives in ricoletta which is a good neighbourhood and says the city has massive problems now, especially with homelessness and crime.
Not sure how you can call that a success
it's a long process until the market can adjust and create more jobs to fill in for lost government/government-backed jobs. it was the same thing for post-communist countries in the 90s. unemployment and poverty soared and it took years to get back up to communist levels, and ~10 years to start breaking up above that. in Argentina's case it's going to go faster since the poverty level and inflation is much more lackluster than what it was in communist countries
@ good points. Guess time will tell.
your country was suffering for decades. He had to be the father to give Argentina "tough love" in order to set it straight.
It's too early to tell. Wait 3 more years.
won't stop them releasing a video about Milei every other month and virtually coming to the same conclusion, dogwater analysis I'm amazed anyone takes this channel seriously
@RoyThomas-c7h when it comes to economic analysis I've seen recently they jump the gun just to get a video out, but other than that the seem solid
worse, social consequences of things like government infrastructure and poverty sometimes take decades to become apparent.
This is not what the online left was saying a couple months back, they seemed very certain it was already proven to be a failure🤔
Social services are nice when you can afford them, they can bring growth to a healthy stable economy and excess will bring more suffering
The rate of inflation is down, not the actual prices of necessary goods. Poverty is significantly worse now than before.
Price of goods doesn't come down, that would be deflation which isn't a good thing, ask Japan. Instead wages grow to match these increased prices. Also the poverty rate has begun to fall as real wages begin to rise. Recovering from decades of bad economics takes time.
That makes zero sense. Inflation is literally the rise in prices of goods year on year
@@vedsingh-bp2ke for prices to go down that would have to be deflation. The rate of increase of prices has gone down, not the prices themselves.
@@romitkumar6272 we'll see how average wages perform in the next year, but my original point is that the media like tldr are making it sound deflationary when it's as you described it
Well, obviously. No one is claiming otherwise? Thats what inflation is
Telling the truth to the public is one of the greatest things a politician can do. Melei has been successful because he has been honest with the people, and although his plan has faced setbacks, they understand and still accept him. This honesty fosters harmony.
But credit has to be given to the argentine public for this. So many people can't handle the truth. The UK Public can't handle the new the current administration already because we like to have have our cake and eat it too
@@SASMADBRUV7True but even the Argentinians only got it after multiple bankruptcies and decades of catastrophic economic policies. Does that mean there's no chance of fixing it until you've it the bottom?
@SASMADBRUV7 no we can't handle it because labour have gone back on most of their promises and then just tried to blame the Conservatives.
Which funnily enough is pretty much what the Democrats did the last 4 years in america.
They just denied any problems, then when the problems they caused became too obvious they blamed the previous administration
It's not just about talking anymore, but doing too. People pay more attention now to what politicians say and do. With the internet, society remembers everything-what they said, what they did, and what they thought about different topics. So when they say one thing but do another, people can easily see how hypocritical they are. That's the cultural impact that Milei is provocating.
Of course, society doesn't have to deify him, but listening and think about what is he saying, cause is a very cult person about economics
@@diegoyuiop no, you just have to avoid socialism and get the government out the way as much as possible
Mile's success is based on a country in a death spiral, investing to escape it. Are there other countries in a similar state? Yes.
Brazil was on a similar death spiral in the 80s and early 90s, whichonly ended it with the Plano Real and the introduction ot the Real currency.
if Milei wants to replace the Peso, maybe he could've started making the Blue Dollar exchange rate the precursors to a new currency, like Brazil did in 1994
Honestly no lol. The poverty rate is 53%. Few other Western countries have it that bad.
It's the opposite. They cut spending and fired a lot of government officials.
No, way no other country has the very specific issues of Argentina and no other country is desperate enough to do this
"Saved" 50+ % below poverty rate. Hey Somalia has low inflation too. 😂
yea minute when I heard about no money for local govs, infrastructure projects halted and government ministries dismantle: I was "WTF this is gonna destroy the economy, GDP and quality of life, especially the local government finances.
Then the video mentioned GDP, Poverty and people in the comments tell of purchasing power issues. I guess this days financial genocide of your country population to lower inflation is equal to saving economy somehow. What a bull crap. I bet TLDR gonna say same things about Trump tariffs after they destroy American purchasing power.
@@olracorig As you might have seen in the video, it spiked at first and has now started falling and is below 50% currently. Just like he said it would.
its easy to get inflation down when nobody can buy shit anymore
doing it without crashing the economy is hard
meanwhile brits are still trying to recover from the short term pain caused by thatcher in the 80s and germany from schröder
@@oifikd1Ah yes it went from 53% to 49%. What a great change. Half the country is still below the poverty line.
Actually poverty went down and is bellow 50% now. And is going down even more next year
Mmm, yes I'm sure "halting public infrastructure projects" will not have any long-term consequences that will subvert this "success".
infrastructure have maintained cost you know why need more when you already broke?
when you can't afford ifrastructure - you should not build it
Public infrastructure is great when it can be afforded. It’s not a permanent stop, it’s creating financial space for it in the future.
Costs needed cutting but they're celebrating too soon. Austerity isn't the magic tool certain economists try convince it is. He's sobered up and walked back from the sinophobia trash talk and BRI is headed to the rest of South America so he had no choice (rather than chalking it up as being led by foresight).
Halting projects that a country can't afford is a pretty common sense thing
Modern Economics be like, "Yeah everyone is poor, they work for slave wages, they can't afford basic needs, and their biggest export is their own exploitation.... but numbers go big so its great!"
Financial markets be like:
Modern communist astrology be like: "Yeah everything is getting worse and worse and everyone is getting poorer and poorer but if we just print another 2 gajillion dollars and nationalize 300 more businesses and raise the minimum wage by 50 dollars it will solve everything this time trust me every other time it ruined everything but those were all just a fluke"
You took the words out of my mouth
@@UrsusUrsa would you rather your state to fail and go bankrupt, putting 100% of the population in poverty? That's how's nazis came about, you don't support that right?
@wisdometricist880
That's very good and all but...nobody was talking about or defending communism so you automatically going for the strawman defence of "communism bad tho" shows everyone that you don't actually have an argument and are just saying stuff randomly
I don't think any other country needs to replicate Argentina because no other economy in the world is like it, and it was way deep in the hole. However, many countries such as the US can certainly learn lessons from what Milei is doing.
And the UK as well...
And France, Germany, Portugal, Spain, Italy and now even here in Norway as our taxation policies are ruining the private sector.
Canada?
Venezuela?
@@Zyzyx442None of these countries are even close to argentina. Norway also has a massive sovereign wealth fund but does have a currency problem with accounts for most of the drop in Real wage growth.
It seems the comments didn't get the whole V shaped growth and short term pain long term gain thing.
I'm not sure how you save a people by subjecting them to avoidable suffering. You can combat inflation and grow an economy while.still considering people's living standards. This video is stupid
I think this video should have been saved until we could see whether it was actually successful or not. Milei's "apparent success" could well turn out to be a blip before a massive downturn, and Argentina is still in recession, so this seems premature.
Inflation in Argentina decreased rapidly because people now Doesn't have much money to spend and less spending means less inflation
No.
Less printing of worthless money means less inflation. Its ok to have less money when theres less inflation because then the small ammount of money you have actually gains value. When theres big inflation you can have a big ammount of money but it will have almost 0 value.
Yes and no, I think that having a fiscal surplus, taking real measures to remove the dollar restriction, stop printing huge amounts of money and renegotiate debt payments to stop increasing the interest you pay had a greater weight than the drop in consumption.
Today consumption is recovering and inflation is not soaring as before.
No, it's because they aren't financing government deficits by printing money anymore. Households don't have much to do with this. Governments lie to people and try to blame inflation on them or businesses to dodge responsibility.
yeah, tell that to Venezuela. People there have had no money to spend on basic needs for years yet inflation doesn't give half a flying fuck and keeps rising. That is not how inflation works.
more than half the country's in poverty! how much of those people are captured in the approval ratings? did they only poll people from the upper middle class and higher?
What do you mean by "success"?
Do you prefer a status quo of recession?
@@EmeraldSteve you realize the recession is still happening right? lmao
Literally watch the video bro
@@JustAnotherAccount8 they do have metrics but they never justify why those metrics are important
@@andalilbitqueer you want more recession for the next decade for Argentina? Change takes time, stop acting like rome was built in a day.
Don’t forget that Shock therapy has happened before and the end outcome is always massive wealth inequality and huge spikes in poverty. This will end poorly for Argentina.
EXACTLY!! It’s insane this channel is saying it’s going well when it quite clearly isn’t
The US economy is not the Argentinian economy. It is not facing the same problems as Argentina’s is. It’s more likely to make things worse rather than better for the US.
If Harris won we would have been. How do you think Argentina got to this situation?
@@AdamSmith-gs2dv
Sure pal.
And yet Milei has yet to show a single month where Argentina actually upped it´s industrial production ... In March alone Industrial production fell by -21.4% ... Meaning Argentina just produceses less. The previous Gioverment actually left him with a slightly growing industrial Production sector (+0.4% in Nov 2023) Household poverty Rates are now above 50% (up from about 30% under the previous Goverment) By the way with that industrial growth (or rather degrowth) rate It is even behind Germany ... The nation you guys like to call "the dead men of Europe"
I would also question rather or not the wage growth is Milei success or it didn`t happen despite Milei ... after all he is working against workers and there wages ... introducing anti Union laws and so on ...
the wage growth is easily explainable. if you first cut real wages by a lot (huge inflation spike where wages didn't keep up), they can then increase by a little bit. if you're a narcissistic idiot like milei you can then sell that as a success.
Half the people are in poverty, but the line went up, so hazzah, success!...
Politics are absurd sometimes.
not extreme poverty just poverty. the poverty rate is median income/2. poverty happens in capitalism because people are paid equitably not equally. it makes no sense to use normal poverty to determine anything
Poverty is only a line. Do you think modern capitalist countries are like not poor just because their government spends some money to social things? Not, they have working capitalism system. Argentina was undeveloped country because of ineffective government, it's can't be fixed just with printer brrr
@@yagzefegames7957Capitalism only works if the population can afford to buy things. In the short term you can get a boom by letting the rich keep all the profits and toss it about between investment firms, but if people can't afford the products the economy eventually starts falling apart.
Poverty rates haven't been updated yet, but the Juan de Mariana Institute says it's already to pre-Milei rates of 45%. Juan de Mariana had already predicted the 1st semester's poverty rate and many other data, so it's safe to assume that Milei's high approval rating in the last month comes from the economy starting to recover in the last couple months.
Sure, but bear in mind the line that went up is a symptom of changes that inequivocally lead to the generation of jobs, and that same line kept going down with pretty much the same poverty levels. That 40% from the previous government was bogus: that government belonged from a party that has made faking metrics standard practice. In reality it was close to 50%.
There's a reason his approval rates are so high.
The only reason this "worked" in Argentina is because the bureaucracy is genuinely bloated an inefficient - something that's unique to Argentina.
This can't work on, say, the U.S., because contrary to popular (propaganda) belief, the bureaucracy in the U.S. is quite efficient. You don't just become the top economy in the world with a bureaucracy as bloated as Argentina's.
Also, it remains to be seen if this economic strategy even really works. Inflation might be down, but a LOT of people have reportedly became a LOT poorer because of it. Numbers going up/down means nothing if the median worker in even Buenos Aires is worse-off than before.
@@reaperz5677 it is unique to Argentina, uk, France, USA, Germany, Russia, Japan, China, Australia, India, Egypt, etc
@@penzorphallos3199 -someone who has no idea what they are talking about. Argentina is a country that easily could be rich, but shot themselves in the foot again and again for 70 years.
@@penzorphallos3199 not to this level, it isn't. We have several provinces where close to 40% of employed people are government employees and a lot of the rest work for companies contracted by the government to work on corrupt public projects (of course this guy tanked hard in those provinces). You have no idea how bad it can get here.
Declaring this “worked” after a few months of numbers improving is a bit early. This could never work in the US either because if the president cut the value of the dollar in half people would riot in the streets. Americans are spoiled and have no idea how good they have it.
the US government makes up around 36% of total GDP... and you're claiming it's not bloated?
Let's not forget though that the bar was really really low.
And it was going lower and lower before he took off
Where dd you get your data? Both Gallup and AS/COS say his approval rating is 56%, not 66%.
lol
Watch the video.
They have sources in the desc
Which is still high considering the cuts he made
As someone from Southeast Asia, I don't think someone like Milei can succeed here. You're going to get protests everywhere, especially from the lower class, who don't understand the economy that much; they just want everything to be cheap. I do appreciate that Milei is honest about saying the country is going to hurt before becoming better again.
Economy increases will not save the people form being poor, starvation will increase and no economy will save it. 😢 no job, no money, no food.
What is the point of "saving" an economy if people are dirt poor?
Spoiler: things won't get better
@@azleadam9239 Argentina is in the blink of bankruptcy. If they still had the old government system, they would be bankrupt soon. They wouldn't even pay back the interest on external debt. Radical problems need a radical solution.
milei is honest about saying it's going to hurt. he's lying about it becoming better. of course he will celebrate it as success if gdp starts growing again and saying "i told you so". but gdp will still be less than before he took office. if you first break something, then fix it halfway you haven't done yourself a favour.
For developing nations that export raw materials and stuck in the crippling cycle of ever growing food/fuel subsidies, Argentina might pose a good lesson. For developed service economies, a great way to hobble them.
Love how sucess is measured in abstract economic terms as if poverty rates aren’t important…
The GDP drop by 4%, that is bad in any economic term. 40% of the population is now below the poverty line up from 15%... This is insane to say the least. Macro economic isn't good.
3:12 - There you go...
The poverty rate was just revealed, if people depend on government habdouts to survive they are already poor. What matters is that povery has been going down as a result of people actually getting private sector jobs.
maybe it's crazy what I'm about to say,but milei wasn't the one who caused 50% of the poverty. when he took office the rate was 40% now it is 49%, not so much in comparison eh? Even so, the spike in poverty comes from the devaluation of the peso.
This was his whole argument, that the economy would get worse before it got better 🤦♂️
It’s always about GDP, are we ever gonna measure a country’s economy as per its inhabitants’ quality of life? Nah dont matter, who cares whether the hoi polloi can eat, look big numbers yay
I think you're referring to GDP per capita PPP. When it comes to the measure of the economy, it is the GDP you look at.
Gdp and quality of life tend to correlate though. And a strong economic base allows for quality of life to increase. You can't really improve quality of life without putting focus into productivity which is what gdp is
@@thomcowley7332 western gdp increase in the 19th century resulted in the "western lifestyle" the highest standards of living in the world (currently). This is literaly why people migrate to the West and not elsewhere. It takes time and it is diffidult, but yes when numbers go up people get richer and quality of life increases.
I would also like to point out that quality of life is subjective. You measure something that can be objectively measured and that is the economic output of the country.
Maybe you have an attention span problem because you didnt catch the part of the video where they say poverty has started going down :/
But stopping infrastructure projects is gonna hurt in the long run
He's basically their Thatcher, short term wins for long term pain
@@Dan01126thatcher never balanced the budget. tax cuts do not exists when you run a deficit. you either replace real taxes with hidden taxes by printing more money or you pass the debt to future generations with loans. thats what makes argentina differant
@@Dan01126 He's literally unironically doing the EXACT opposite of Thatcher by putting Argentina through short term pains for long term gains. Like, I don't know how on earth you're getting that incorrectly when basically all measures of the Argentine economy is suffering right now in order to completely restructure it to be better and more sustainable
@@Dan01126 you are unironically saying the opposite of what hes doing. his plan is short term pain for long term gain. we are now seeing the pain.
@@Dan01126You misspelled Twatcher
What is there to replicate? He's doing exactly what other countries are doing but far more aggressively, and the consequences are for all to see with a basic Google search.
What other country is doing the same thing as him? Many claim to do the same thing as him but they maintain high fiscal deficits or print large amounts of money which is far from what he is doing.
Economy shrinks, people thrown into poverty, goods become more expensive, BUT “he saved the economy”. WTF
i know buddy, but it has to be this way, here in Brazil, we went through that in the 90's, it was painful for everyone, but today Brazilians are better off.
RIGHT? Every day people get thrown into poverty and lose government benefits, but because numbers look pretty on a graph now we’re already saying he “saved” the country LOL. So out of touch
Argentinians used to have money but have nothing to buy at the same time. Now there’s stuff in stores.
Goods become mo expensive, lol, monthly inflation falls from 25% to 2,4% per month with him. Wtf
i mean, better than government being dirt poor and kept printing money I guess?
Most of this was caused by cutting spending of everything, which wasn´t that hard. If I decide to improve my personal budget by cutting food, water and electricity I am sure that my budget will have magical surplus too. (although soon I will die by thirst and hunger, but thats problem of future me...)
He cut healthcare, education, public projects, sold government companies... People knew that this will give him more money and in the short term improve the situation. What worried people were mostly long-term results of this policy and we still don´t know what will that look like, so its pretty soon to praise him and want to do same thing everywhere else too.
It Isn’t soon to praise him. Poverty is down (it’s still high, but it’s less), inflation is down, salaries have beaten inflation, the economy will grow 5,5% next year and millions of dollars will come to the country via investments.
The first 6-8 months were tough, but you can see the change. We can see that this sacrifice will pay off.
@@pepinillo2575 It has been a year since he got to office, that really isn´t a long-term effect I talked about. Cutting education won´t magically make educated people disappear, education takes years and even if he completely cut any education effects would still take years, probably dozens of years to show in any significant way, same with most other investments.
"Line go up!"
Yeah, but if 90% of your people are in poverty, what does 2,5% increase in GDP actually mean?
Yep, they should've elected the same guys who have been keeping them poor for the last 50 years so they can keep printing money instead of trying to fix the problem
How dare you not support Crony Capitalism?!
@@Chrissy717 2.5% increase means you country has more wealth circulating than than before. It is minuscule and not distributed evenly but it is better than a shrinking economy. Do you want less wealth instead? Because that was peronism. Btw ask yourself where that wealth previously went. Check Switzerland maybe.
@@wisdometricist880 no, I definitely agree with you. Sometimes you have to elect someone who will make everything worse for you to realize your mistakes. Look at Germany.
I bet you there were people in 1933 talking about how the social democrats were making everything worse and electing them again would be madness
@@penzorphallos3199 Okay, but by that logic, people in the US should have been more than happy with Biden, because "line in US also went up, by a lot!"
Wealth for a country means nothing if the people don't get to see any of it.
Just look at Syria. After 2016, their economy also grew by a few %.
Did that mean Assad started to stop stealing all the wealth? No.
Yeah, 7 children out of 10 out of school and in poverty, an elderly man tries to set himself in fire because now he cannot access medicine he needs to live, low retirement pensions get lowered even more, working class cannot make it to end of month. but inflation and macro economical metrics are up, yay Argentina! Viva la libertad caraxo! Effin' disappointed in you TLDR, You are better than this.
Bad take. The point is under the old system it was unsustainable and trending worse and worse. There was pain in the reset, but now the system is sustainable and trending better.
Success ?
Yes
A success for Argentina’s upper class and corporations. Sort of how hèalth care is a success to billionaires in US
@sagm5674 shut up.. You don't live here. You don't know what you're talking about
1:05 I love the little chainsaw icon. 😂
I find it nuts how Milei had a crazy reputation months ago until today, where Milei has a huge approval rate. 😂😂😂
To be fair, the guy was waving a chainsaw around 😅
If you get someone in to redo your kitchen , it only looks good once it's nearly complete
I think that was mainly due to how he was being portrayed. I mean, he was pulling some stunts like waving the chainsaw around and the ¡AFUERA! video, but it’s clear that a large chunk of Argentines agreed with him enough to vote for him in the first place.
@@capncake8837to be fair he was also using a physic to talk to his dead dog which told him to run for president
The ones that criticized him are wrongly educated about economics, to say the least.
This framing is genuinely incredible. Poverty up, quality of life has gone down, the already meagre support the people had has been systematically stripped away but somehow this is a success because look at this graph.
Problem was government was spending huge amounts on support and people were getting poorer.
If all he does is defeat inflation that is a boost. With inflation your cost of living rises and wualiyifvlife drops.
LINE GOES UP
Poverty is going down, actually. In February it peaked around 57%* (mostly inherited from previous administration) and from there on it just continues on a downward trend**; Around this time last year, poverty was around 45%, whereas now it is below 45%.
Furthermore, both the AUH and the "Tarjeta Alimentar" were doubled in value with inflation taken into account**** now with both practically covering 100% of the food needed to sustain/feed per month a stereotypical family of two parents and two children. Prior to Milei's administration, both the AUH and the Tarjeta Alimentar barely covered the 55-60% of the "basic food basket" (idk what term u guys use in english). Also Milei got rid of the intermediaries that would force the poor to go protest in exchange for the money the government gave them. Awful right? If the poor that actually needed this income refused to go to the protests AKA "piquetes" (ant1fa kinda protest if you know what I mean; disturbs, setting stuff on fire (actual cars), breaking in public and private property, battery, stealing. You name it. ) they wouldn't release their money and actually charge upfront a certain percentage of the money destined for the poor******. That's over now.
Recession IS expected, think about it as not that dissimilar from the pandemic; it is a price that society must pay, in this case, in order to restructure the macro-economy; which sustains genuine economic growth in the mid/long-term.
We're already starting to see progress and bettering compared to last year's economy.
And yes, the graphs are important. Do not focus on a still-frame; try to see the entire movie and most importantly the direction we're set on. That of economic prosperity. Can you imagine your country with +250% annual inflation? We're getting rid of that, the actual not legislated tax that harms the poor the most; as they can't keep up with the ever increasing prices and their wages not even updating at the same rate, lagging behind. Now you can somewhat expect the prices during the following weeks to remain stable. I should mention that the wages/salaries are virtually 100% covered since the harsh recession we went thru. Heck, even updating faster than inflation itself now. *******
It's only been a year, we're a "third world country". Don't expect us to become Ireland or Israel (economic-wise) in a year man. We're a poor country and structural and harsh reforms are a must in order to finally break out of poverty. It is paying off already.
I'll comment the sources in this thread. Chances are, youtube will delete the comment cuz of links as a security measure.
I know my grammar and phrasing or use of commas are not quite right, I'm still learning. Thx for reading if you did.
@@nicolasrodriguez5054nicely said. It's hard to articulate these ideas to some people who are just like "but there's less 'free' government stuff, therefore bad!!!"
@@quietus13 Thanks. It's a shame YT won't let me comment the sources.
I remember being told back when he took office how he was going to crash the Argentine economy… curious
He did though
While talking about improved GDP figures, lower inflation or a better economy its always good to ask "For who?" .
Cutting government spending may look good on paper the same way cutting on groceries will look on your bank account but the question is, are you better off without food??
Modern economics.... Spreadsheets and graphs look good.. but people are starving and unemployed ✅
When right wingers said that about the Biden administration many said it was a lie and "that's not how it works"
Already was before.
The country was in a perpetual state of getting in debt to give money to poor people, milei is fixing thr economy wich will help poverty in the long run, yes poor people are going to have it worse fot 4/5 years but the sacrifice will be worth it
Well obviously have to see in the long run, but in the short run it’s been chaotic to say the least.
With ~50% of the population in poverty it's almost certainly too early to be singing his praises...
Maybe think about how previous policies and goverments even brought them to that level and maybe u'll understand why what he's doing is actually a success
@theemperororsomethingidont6897 People are blaming milei for the mistake of previous government, it's rather crazy how can seemingly people criticize without truly knowing they talk about.
Not so fun fact: For all of Milei's "success", Argentina's poverty rate has jumped from 40% to almost 53% in the past year.
poverty rate is=median income/2 poverty is a measure of income inequality not suffering.
Milei campaigned on a platform where he told the electorate that if they elect him, there will be economic upheaval for a while due to the reforms necessary to improve economic prospects. People elected him fully aware of this.
You are a liar. It was 49% in December 2023. 40% is from 2019
@@yagzefegames7957 Higher inequality literally leads to more suffering for ordinary people by nature of shoving more money into the hands of fewer people.
@@tedarcher9120 No, I'm not. It was less than 26% in 2019. Just search Argentina poverty rate on statista. Can't post the link because RUclips keeps removing it.
Why does TLDR have a jojo approval of milelei, where Argentina's prospects seem reversed every other month.
Notice how many news sources have talked about Ukraine in the same jojo way in the last few years.
* yoyo
Whats important is the long term impacts of Mileis policies. Fiscal debt is one metric. If all this money goes to the rich or multi-national companies. The cuts to regions may also lead to some regions falling back even further behind others. The ideology serious gives me vibes of being "abolish the police" vibes from a conservative position. While I think its good to have strong business but if its not local but large international companies it undermines the market.
What strongly undermines Mileis libertarian credentials to me is his treatment of coops. For those who don’t know. Coops are companies owned by workers. They vote for their leaders in the company and every worker owns shares in the company. Since the late 90s Argentina has a big coop sector. This was helped by the government allowing workers to buy companies they worked in if they go bankrupt and the traditional owners resign.
This makes Coops unusual market socialist companies that can participate in capitalist economies. Sadly there is contradictory information. Mileis government seems to have suspended licenses for some Cooperative created between 2020-22 due to not reporting balance sheets. It seems like this is only targeting Coops and not all companies so it seems to be based on politics and not economics. The government claims they are streamlining the process of setting up coops from 2 years to 2 months, while some coops claims that they are given absurd deadlines after the government changed its required documentations.
On the other hand Aerolíneas Argentinas could be given to workers. For context: the company was nationalized until 1990, then privatized until 2008, and again nationalized since then. The company runs a laughable deficit and heavily relies on state subsidies. Milei now wants to give the company to workers. Ironically, the workers are now striking against this because they feel like Milei wants to deliberately give them a company everyone knows is failing. On the other hand it would be funny if they somehow restructure it. However now private companies are bidding for the airline so whatever Milei wants is massively unclear.
Coops usually outperform non-democratic businesses in times of crisis as workers are likelier to take temporary pay cuts to avoid firing or selling assets which in the future benefits the survival rate of the company. This could ironically help Argentina because they are like 10% of Argentinian companies.
He fed on the poor to feed the rich.
You may want to wait longer to see if its truly saved. The people might have more to say about it if their lives dont improve significantly.
Not like your side was any better. Your side is the reason this had to happen in the first place.
We've seen the outcomes of these policies in countries like America. 3rd world outcomes for the population in so-called third world countries.
So bad people are going after health insurance ceos.
It's not success.
The “fuck it, let’s try” approach.
Are we really saying that milei has been an economic success?? Really???
Absolutely yes 💯 percent
It's always about relative to before.
And well... We are talking about Argentina here.
The status quo before that was not sustainable.
So, radical reforms were mandatory.
Radical always means pain.
And the current results within just one year are kinda impressive, not gonna lie.
Argentina is the definition of “extreme times require extreme measures”
I’m old enough to know when this channel kept talking about Milei gov being a disaster, things must be doing very well for this channel to admit it. What’s next are they going to talk about Trump doing a good job? Crazy
Good enough for me. I don't want people sticking to same argument when things change.
Milei's situation is like you selling your shoes, you'll have more money but are you better off. Poverty in Argentina has already increased.
@@davianoinglesias5030exactly
So happy for Argentina
49% relative poverty rate as an unvarnished success? That's sort of a nuts thing to say
@@nabildarwish7815 wages were propped up with programs and fake jobs, supported by taxes and loans. They already were poor.
40% for long time that 49% is noting short time pain anything seem go to the rightpath
@@penzorphallos3199they would have been poor anyway without the government intervention. So let’s take the government intervention away and make them poor, because we want numbers to go up!“ fucking insane.
It is not an experiment.
What Milei is doing has been done before and is known to work in the long run.
For example, Poland did it in the nineties of the past century.
'success'??? wtf is wrong with you? you said it yourself.. he increased the poverty to (!!!) 50% (!!!!) and thats a success? you are damn crazy!
The only thing that matters in a democracy is public approval
Mainstream media needs to apologize to Milei. He was exactly what Argentina needed.
The fact that his policies are considered an enormous economic success, while he put large numbers of people into poverty, is a good example of the problems with the ways we measure economic success.
It's called austerity lil bro. Just cause you don't understand the big picture don't mean everybody is wrong.
This is what shook me two minutes into the video ? The way we measure things is a bit odd kinda reminds me of nigerias own economic woes
You're exaggerating, large people were already in poverty; the government was just manipulating the numbers.
His policies are a succes
You will never have economic success if you only want instant results, much less in a country like Argentina.
Have you considered Maybe they had useless jobs?
We are so back 🐍🟨⬛
The same recovery can be observed with the Socialists in Spain, the Conservatives in Italy, and the Libertarians in Argentina. The political ideology matters less as long as there is competence in economic policy. Donald Trump faces a different challenge: the U.S. economy is growing under Joe Biden. His focus must be on addressing the cost of living and social inequalities, areas where he could offer corrective measures.
Bullshit libertarian policies are the way to go
Trump will cause a global depression.
@simontemplar404 first based comment in years
@simontemplar404 Bullshit he didn’t the first term
Economic ideology matters. Real rational economic policies comes from the right/centre because Marxist and keynsian economics are fundamentally wrong. The "right" can be deluded by Marxist rhetoric as well like thinking protectionism somehow makes a country rich.
I came to Argentina a year ago as a german, and the exchange rate has been getting worse for me since the pesos catch up in value. most young people here support mileil, they want to get a job and for that the industry must prosper. There are many homeless on the streets, but overall i would say germany nowadays is much more dangerous than argentina. I think his politics will be a success, withdrawing from socialism is like withdrawing from alcohol cold turkey. It gets worse before you get healthy in the long term.
Right take a sip every time a milei supporter comes in and accuses someone of being a lefty for stating that things are not flowers and rainbows.
I spent a lot of time in Buenos Aires. In the 1950s, “where do you want to live? Paris? New York? Buenos Aires? “ only one foreign Harrod’s ( B A)(now closed)
So he traded economic power and individual wealth for a balanced budget and a trade surplus. Sounds like Agenda 2010 to me and that one didnt work so well in the long term.
For those who dont know Agenda 2010 was a german austerity program in the early 2000s that cut social spending and weakened unions to reduce wages. It was considered a success as it reduced unemployment, which was its main goal. However unemployment is now also measured differently and its actual success in that regard is controversial. What is not controversial is the positive trend of the economic indicators that followed, with improving exports and economic activity, this just didnt translate to the average person, due to weak unions. Now we have a problem with weak domestic consumption causing the economy to stagnate, while the reliance on exports makes us susceptible to foreign tariffs. The budget surplus in the following years was also accomplished by delaying infrastructure maintenance, this in combination with relatively low wages caused the productivity to stagnate, which is a problem when fewer and fewer working age people are supporting a growing number of pensioners. Oh and our Infrastructure is also trash now, public buildings like schools are collapsing...
TL:DR: just because the crash happened like you predicted does not make your recovery successful.
Good that you dont make videos about economics, right ?
Argentina is a weird case, a rich nation 100 years ago has become poor but has attempted to live above it means for decades, the hardest part of this is basically accepting and restructuring the country so it can actually move on from its cycle of perpetuate economic death
It's a house of cards though. 'Five for me and one for you' is always an unstable system
Im pleased to see Milei appearing to finally pull Argentina away from it’s unusually creaky system. It doesn’t hurt that he is an actual economic expert underneath the theater. Proud of Argentina to realize they could not continue as they had.
When economic numbers go up while people get poorer I wouldn’t consider it a success
how many people become poorer exactly?
@ according to BBC the poverty rate rose from 41% to 53% since he became president. That’s about 5.5 million people falling below the poverty line.
@herlocksholmes9146 according to last month, it fell from 53% to 49%
@herlocksholmes9146 I'm not a haunch supporter of Milei or anything, but if the government was artificially keeping the poverty rate "low" for political gains, it's reasonable that it goes up initially when things start to rationalize. 41% is already not an acceptable poverty rate. If the government creates an economic death spiral to keep the poverty rate at 41% instead of 53%, I wouldn't say it's better. Let the economy find its flow and when economy gets better, more people will be out of poverty without depending on government. That's the idea at least. We'll see.
@herlocksholmes9146You literally didn't watch the video, why do you live in denial? It's around 49-46 percent as of now, based on who you ask
Why would anyone want to replicate this? Especially in wealthy EU and US. Argentina had no choice but to do this, and Millei is an actual economist and not a politician
Which success? He increased poverty by 11%, the inflation is down because the economic activity is down. The economy as a whole fell 2% this year.
Most economically literate leftist.
Having a 250% inflation is not a good sign of economic activity.
short term pain for long term gain. this is a part of it.
Things will get worse before Things will get Better
@@nuzayerov this is what ideologists say, but at this point there is no signal that things are getting better and the economy of Argentina is going to thrive next.
@@AnonymousBosch3158 it's shock therapy, which has already failed in states like Russia in the 90s and brought inmense pain, Argentina is "fixing" its economy by demolishing the middle class, it'll end in tragedy
A couple of caveats:
- Exports: YoY agricultural exports are not comparable because last year there was a drought so the exports were always going to be better during this year. Also the pipeline network that allows the gas exports from Vaca Muerta was state developed, and it opened by the end of last year.
- Wages might be rising now above inflation but they are still below inflation YoY because of the huge spike at the beginning of the year.
- The "Big chainsaw plans" is missing some of the big components like cuts to pensions (indirectly by lack of adjustment), funding to public hospitals, universities, energy and transport subsidies, etc. which represent way more in cuts than abolish ministries.
Now opinion part: Guys each video of Argentina you make gets worse. At first I was happy of you mentioning my country but for this quality of work I'd rather you skip it all together.
Rising of poverty is "success"
Argentina has announced that it will sign a “free trade” agreement with the United States.
Millei doubters? AFUERA‼️
Argentina is going the right way...but the darkest hour is the one right before daybreak...
People said that he would destroy Argentina's economy, yet he has saved it
Economy up but everybody poor
Saved the economy and starved his people 😂
@@JeffBilkins Booming economies tend to create an abundance of new jobs (unless the booming economy is due to outsourcing of course). So in time I would expect this to change.
And the people still poor. 😒
If everyone is poor how is the economy saved
Saved Argentina? No he didn't. Milei has failed his country and, hopefully, his agenda will not be replicted elsewhere.
Unfortunately another Millei-style success story in the UK would require our electorate to actually internalise that big states constrain the economy and that we can't have "all the free gibs" that we're routinely bribed with by short term-thinking politicians.
This is not anything new to be replicated elsewhere… just orthodox economics.
You're showing that the poverty line went from about 35% , with downwards trend BEFORE, to nearly 55%.... During Milei... But it got down to 50%.... Which is still WAY MORE than before Milei....
How on earth is that a "Success"....? If Milei did something, he undid previous progress and accelerated poverty...
3:17
He has made hidden poverty visible and since then it has been falling. This is obviously a success.
I mean you could argue Jim Bolger in New Zealand did something similar in the 90s.
He's a libertarian, but doesn't understand the following, "one man's freedom is another man's chains." Ultimately it comes down to character flaws, especially greed and power. You can see it in the UK with Grenfell Tower....slack regulation because of massive underfunding, allowing cheap options to be made, to maximise profits ending in the Tower burning and deaths. Regulation and their implementation are necessary because people are not virtuous.
Get ready for the scandals to hit Argentina, as the rich scam the country.
You have no right to the bodies or labor of other. Didn't you mother teach you no means no?
Not underfunding. Slack regulation to increase profits.
So what is even happening there? Last month people were complaining about mass poverty??
"The economy is still in recession"
So, where's the success 🤣
While poverty rates are rising
@@n00dl3 a -10% recession, as under peronism, is not the same as -3%
I have always thought that Milei's economic policies would be beneficial for Argentina despite the doubts.
We're so back
Javier Milei approach to government, is a bit like the Cartmanland episode from South Park. The “You can’t come in approach”
You guys can be really ridiculous sometimes. Argentina has a 50% poverty rate right about now. Nothing that he has done can offset the amout of lives that will be lost (or made so much worse). Also we tried shock therapy before and every single time it has lead to growth in poverty and shrinking of the economy. I guess i just have to learn to skip your economics videos
It was 50% a year ago so? It stayed the same while inflation is almost eliminated and prices come down
There’s a lot of things that Argentina will sacrifice in the short or even in long term. For instance the large social safety net will be gutted as well as many other government services like healthcare and education. Also having a small government could make you vulnerable to external or internal crises which could cripple a developing nations like Argentina. In conclusion whether you want a big or small government it doesn’t matter to me what matters is what works.
I always hear conflicting news about Milei, one minute he’s the most hated man in South America and the next minute he’s a Christ-like saviour who saved his country. Which one is it 😂
Depends on if you are an investor or a worker
@@iron_talon Workers are the group that profit the most from this. the losers in this are governmentemployees.
@@nox5555 yeah because government employees arent workers right?
why cannot a christ-like saviour be hated? are those two things really mutually exclusive?
This is the prompt I needed to unsubscribe from TLDR.
A country is not just numbers. Behind the figures you call 'an economic success,' there is an increasing poverty rate, declining social services, and other struggles. A country is not a company; its purpose is not to maximize profit. A country cannot take drastic measures that put the lives of more than half of its citizens at risk.
This is the proof. Every country should be running a trade surplus.
Isn’t that impossible? The countries with a trade surplus need to have countries with a trade deficit to trade with.
Also, some countries just don’t produce enough.
I'm honestly happy for the Argentinian people if this pans out. I can not explain why but It's just kind of infuriating to see that someone so outwardly unhinged is in fact seemingly incredibly competent, and the fact people trusted the process, went through it and it worked (so far). And the fact it wasn't sanctioned half way through the process or there wasn't an American founded coup attempt is very interesting. How often have we done something similar but decided to stop half way left things in shambles and then concluded the thing didn't work? Makes me think that an economic doctrine properly implemented on either side of the economic spectrum would work as intended if we just trust the process.
I badly want to believe you, but please state a successful leftist doctrine. Capitalism has its faults, but the alternative has proven time and time again to be unsustainable
The reason it angers you is because his success is forcing you to reevaluate your personal political prejudices
@@TheAmericanPrometheus but a screaming man wielding a chainsaw is not something I consider a political leaning.
The US can't overthrow him,he already bought several F-16 jets from them this year plus eliminating bureaucracy will create a path in for US companies
Optimize your nation 101:
Step 1: Remove inefficient government jobs, because inheritly the government doesn't make money.
Step 2: Profit and Growth.
He flipped the deficit by firing everyone and increasing the unemployment rate from 6.18% in 2023 to 8.45% in 2024
Bro is this channel actually kidding? April fools tldr?
its all smoke and mirrors and the poor are paying...
Well thank god the shareholders are doing well! I'm sure that'll have trickle down benefits. What a crock of nonsense.
wage growth passed inflation. so yes i do think it did trickle down.
@@yagzefegames7957 It does trickle down. Leftists are just mad that libertarian economic policies actually work.
@@Kalimdor199Menegroth ...As shown by the massive increase in poverty in the last year. The benefits don't seem to be trickling down.
Wish argentina the best
Still too early to say especially since 50% of the country is poor
It cannot be replicated simply because no other country was like Argentina. Not to mention the raw materials export is a whole another story of its own.
Some countries just need a lot of tough love. And argentina was one of them
this
Hopefully this will translate to a better life for the Argentinian public in general.
So far it have not
it cannot -- it is a massive wealth transfer from the bottom 80% to the top 1%. More than half of Argentina will remain permanently in poverty, if that figure doesn't continue to grow -- this is not new news, it is what happens whenever a government imposes this kind of austerity.