
<p class="wp-block-paragraph">The Argentinian government has managed to run its first budget surplus in over a decade just two months after its new president, Javier Milei, took office. ;</p>



<p class="wp-block-paragraph"><em>A budget surplus occurs when a government collects more money than it spends. This means taxes can be lowered and the economy will be stimulated by increased consumer spending. ;</em></p>



<p class="wp-block-paragraph">Milei, a libertarian, achieved a surplus of roughly $620 million through an ambitious plan equivalent to 5% of the nation’s GDP. For the United States, this would be equivalent to a spending reduction of $1.4 trillion during a single year. </p>



<p class="wp-block-paragraph"><strong>Details include:</strong></p>



<ul class="wp-block-list">
<li>Firing every public employee who was hired within the past year</li>



<li>Cutting appointed government positions by 34%</li>



<li>Pausing all public infrastructure projects, government publicity campaigns, and money transfers to local governments</li>



<li>Devaluing the local currency by roughly 56%</li>



<li>Halting import/export quotas and licenses</li>



<li>Increasing taxes for non-agricultural imports and exports </li>



<li>Expanding direct aid programs for childcare and access to food </li>
</ul>



<p class="wp-block-paragraph">The plan, described by Milei as “shock therapy,” is designed to treat an economic crisis brought on by years of over-spending, excessive money printing, and <em>Peronism</em> (a mix of socialism and fascism) that saw Argentina devolve from prosperity to poverty. </p>



<p class="wp-block-paragraph"><strong>According to a recent study, inflation in Argentina is above 200% and 57.4% of its citizens live in poverty.</strong></p>



<p class="wp-block-paragraph">“The main leaders of the Western world have abandoned the model of freedom for different versions of what we call collectivism,” argues Milei. “We’re here to tell you that collectivist experiments are never the solution to the problems that afflict the citizens of the world &#8211; rather they are the root cause.” </p>



<p class="wp-block-paragraph">Milei’s free market approach is similar to strategies that have helped Ireland, Hong Kong, Estonia, and others recover from economic crises (and reduce the government&#8217;s influence over individuals). However, as journalist Jon Miltimore points out in the first article linked below, the mainstream media in the US all but refused to comment on Argentina’s success. </p>



<p class="wp-block-paragraph">This could be due to embarrassment (the US, which is more than $18 trillion in debt, hasn’t seen a budget surplus since 2001), but is more likely due to the close relationship between the mainstream media and the US government, the latter of which opposes free-market libertarians like Milei in the interest of self preservation.</p>



<p class="wp-block-paragraph"><em>Reuters</em> published a brief article that mentions the budget surplus, but primarily focuses on Milei&#8217;s decision to devalue the peso as the reason poverty in Argentina jumped from 49.5% in December to 57.4% in January. That may be true, but it&#8217;s clear that dramatic steps were necessary in order to put Argentina on the right path. </p>



<p class="wp-block-paragraph">Milei, 53, was elected on campaign promises to “dollarize” Argentina’s economy, slow the inflation rate, eliminate the fiscal deficit, and remove some power from political dynasties. It seems like he is doing exactly what he promised. </p>



<p class="wp-block-paragraph"><a href="https://fee.org/articles/javier-milei-delivers-argentina-s-first-surplus-in-over-a-decade-and-us-media-is-silent/">Javier Milei Delivers Argentina’s First Surplus in Over a Decade &#8211; and US Media is Silent </a></p>



<p class="wp-block-paragraph"><a href="https://twitter.com/DanielDiMartino/status/1734755187661668593?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1734755187661668593%7Ctwgr%5E1bda6d315211b8de14177763770a716461e47332%7Ctwcon%5Es1_&;ref_url=https%3A%2F%2Ffee.org%2Farticles%2Fjavier-milei-delivers-argentina-s-first-surplus-in-over-a-decade-and-us-media-is-silent%2F">X Post from Daniel Di Martino</a></p>



<p class="wp-block-paragraph"><a href="https://www.reuters.com/world/americas/poverty-argentina-hits-20-year-high-574-study-says-2024-02-18/#:~:text=Other%20measures%20included%20slashing%20energy,the%20green%20since%20August%202012.">Poverty in Argentina hits 20-year high at 57.4%, study says </a></p>

New Argentinian Conservative Leader Achieves First Budget Surplus in Over a Decade
