Marc Abear: Argentina provides example of free markets vs socialism

To The Daily Sun,

Argentina is the focal point for the revitalization of western capitalism. Argentina’s experiment in economic freedom is a foray into economic reinvigoration. For nearly a century, Argentina has been an economic basket case.

For too long, the entire West has problematically chased Keynesian economic philosophy. John Maynard Keynes said government should spend from its reserves to stimulate the economy in avoidance of economic downturn. The abuse of Keynes has led to gross governmental overspending, followed by stagnation, unsustainable debt and radical inflation.

In the early 20th century, Argentina was one of the wealthiest countries on Earth. From the later first half of the 20th century, Argentina began pursuit of nationalist socialism; internal redistribution plus external protectionism with corruption and expropriation of private property.

Between 1980 and 2023, Argentina saw a decrease in living standard. The Argentine people finally had enough in 2022 and elected Javier Milei president. He is an Austrian school economist dedicated to free markets.

With clarity he articulated proposed cuts to government spending. Milei told the left, “Economic freedom, limited government, and unlimited respect for private property are essential elements for economic growth.” We Argentines know the poverty produced by collectivism very well. It is not a fantasy, nor is it inescapable.

Milei has pursued his vision with speed and power. The results are astonishing. He has cut the number of ministries from 18 to eight, fired much of the public sector workforce and dumped the intermediaries in the welfare system.

The budget was cut by 32%, bringing a fiscal surplus for the first time in years, and lowering inflation from a 25% to 2% month-over-month. The stock market has skyrocketed. Investors are looking at Argentina as a place to put their money. Milei and Argentina show, it doesn’t have to be this way.

Marc Abear

Meredith