Four years ago, 108 economists – including the celebrated income redistributionist, Thomas Piketty – signed a letter denouncing the “very harmful for the Argentine economy” policy ideas on which Argentine President Javier Milei had campaigned. They claimed that his proposed “major reduction in government spending and tax rates would increase already high levels of poverty.”
How do those predictions look now? Not everything is rosy in Argentina and the financial outlook is still rocky as Milei cleans up a half-century of corruption and socialist policies, but many of Argentina’s key economic measurements have shown modest to dramatic improvement.
The three most impressive are compiled below. Inflation is still too high, but it is WAY down from its 120% rate. The stock market has quadrupled (!) and poverty has been cut roughly in half.
One good source for the latest in Argentina’s rebound is our friend Dan Mitchell at Freedom and Prosperity, who recently posted this chart:
Both poverty and “severe poverty” have been cut in half since Milei took office and began to implement his reforms.
For now, the 108 economists who warned of economic collapse should apologize, crawl back under their rocks of academia, and keep estimating how many angels can fit on the head of a pin. Maybe they’ll get that right.
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