Buenos Aires, September 2023. Hundreds of people crowded around to wave flags and film on their phones. The man with unruly hair and sideburns in the centre of them, clad in a black leather jacket, hoisted a roaring chainsaw above his head. This was an election rally taking place in the San Martín area of the Argentine capital a month before the presidential election - and the metaphor was explicit. The candidate Javier Milei believed the state was far too bloated, with annual debts that were bigger than Argentina's entire annual economic output. Rather than 'trimming the fat', as some politicians delicately put it, he said he would take a chainsaw to ministries, subsidies and the ruling political class he derided as la casta - the caste.
Milei had a history of performing provocations, from dressing in a libertarian superhero costume to smash a piñata of the Central Bank on live television. In 2023, Argentina was grappling with a staggering inflation rate of over 211% and a poverty rate of around 40%, driven by high public spending and chronic monetary mismanagement. Yet by 2025, Milei's reforms had led to Argentina's first fiscal surplus in 14 years and a significant drop in inflation to around 36%.
The UK Conservative Party leader praised Milei's measures as a template for future governance, while former President Trump lauded him as my favorite president. Their ensuing meeting in Washington is seen as both a validation of Milei's approach and a potential precursor to future collaborations.
However, the public response has been far less enthusiastic. Protests erupted against Milei's reforms, with clashes resulting in police using tear gas and water cannons against demonstrators. Detractors argue that the burden of Milei's austerity measures has fallen disproportionately on the working class, undermining social safety nets.
As recent local elections saw Milei's party suffer unexpected defeats, the markets reacted negatively, fearing instability within his administration. With crucial midterm elections approaching, Argentina stands at a crossroads: will Milei's radical changes solidify a path to recovery or precipitate further economic and social upheaval? The dichotomy between his supporters and critics underscores the complexities of his 'chainsaw' economics and the precarious balance of public sentiment in the face of austerity.
Milei had a history of performing provocations, from dressing in a libertarian superhero costume to smash a piñata of the Central Bank on live television. In 2023, Argentina was grappling with a staggering inflation rate of over 211% and a poverty rate of around 40%, driven by high public spending and chronic monetary mismanagement. Yet by 2025, Milei's reforms had led to Argentina's first fiscal surplus in 14 years and a significant drop in inflation to around 36%.
The UK Conservative Party leader praised Milei's measures as a template for future governance, while former President Trump lauded him as my favorite president. Their ensuing meeting in Washington is seen as both a validation of Milei's approach and a potential precursor to future collaborations.
However, the public response has been far less enthusiastic. Protests erupted against Milei's reforms, with clashes resulting in police using tear gas and water cannons against demonstrators. Detractors argue that the burden of Milei's austerity measures has fallen disproportionately on the working class, undermining social safety nets.
As recent local elections saw Milei's party suffer unexpected defeats, the markets reacted negatively, fearing instability within his administration. With crucial midterm elections approaching, Argentina stands at a crossroads: will Milei's radical changes solidify a path to recovery or precipitate further economic and social upheaval? The dichotomy between his supporters and critics underscores the complexities of his 'chainsaw' economics and the precarious balance of public sentiment in the face of austerity.
