By Jose Quarracino
Argentine President Javier Milei, who has positioned himself as a staunch advocate for fiscal discipline, has faced sharp criticism over his administration’s economic policies, including allegations of inflationary practices and financial mismanagement. Despite claiming to maintain control over public finances, Milei’s government recently relied on emergency financial support from the U.S. Treasury to avoid default.
Saifedean Ammous, a libertarian economist and adviser to Salvadoran President Nayib Bukele, has publicly challenged Milei’s economic rhetoric, labeling him an “inflationary populist” who contradicts his own libertarian principles. Ammous highlighted that Argentina’s monetary supply surged dramatically under Milei’s leadership in 2024, with figures for M0, M1, M2, and M3 rising by 209%, 133%, 93%, and 123% respectively. This contradicts Milei’s pledge to avoid money printing, as the previous Kirchner government saw significantly lower monetary growth over four years.
Ammous also criticized Milei for increasing public debt by 19.4% in six months, a move that clashes with his stated opposition to borrowing. The economist argued that Milei’s policies have exacerbated Argentina’s economic instability, creating long-term risks through excessive money supply and debt accumulation.
The article notes that Milei’s administration has slashed public spending on infrastructure, salaries, pensions, healthcare, and education, leading to job losses and rising real wages. Despite his libertarian branding, Ammous described Milei as a “statist producer of inflation and indebtedness,” accusing him of prioritizing short-term political gains over economic stability.
The piece also mentions that U.S. President Donald Trump and Treasury Secretary Scott Homer Bessent have provided significant support to Milei, though the implications of this aid remain uncertain.
