Jon Miltimore on Argentine President Javier Milei’s good economic news that the legacy US media are resolutely ignoring:
Argentine President Javier Milei speaking at the World Economic Forum gabfest in Davos, Switzerland, January 2024.
Photo by Flickr – World Economic Forum | CC BY-NC-SA 2.0
Argentines witnessed something amazing last week: the government’s first budget surplus in nearly a dozen years.
The Economy Ministry announced the figures Friday, and the government was $589 million in the black.
Argentina’s surplus comes on the heels of ambitious cuts in federal spending pushed by newly-elected President Javier Milei that included slashing bureaucracy, eliminating government publicity campaigns, reducing transportation subsidies, pausing all monetary transfers to local governments, and devaluing the peso.
Milei’s policies, which he has himself described as a kind of “shock therapy,” come as Argentina faces a historic economic crisis fueled by decades of government spending, money printing, and Peronism (a blend of national socialism and fascism).
These policies have pushed the inflation rate in Argentina, once one of the most prosperous countries in Latin America, above 200 percent. Today nearly 58 percent of the Argentine population lives in poverty, according to a recent study.
And Milei rightfully blames Argentina’s backward economic policies for its plight — policies that, he points out, are spreading across the world.
“The main leaders of the Western world have abandoned the model of freedom for different versions of what we call collectivism,” Milei said in a recent speech in Davos. “We’re here to tell you that collectivist experiments are never the solution to the problems that afflict the citizens of the world — rather they are the root cause.”
The revelation that Argentina has done something the US government hasn’t done in more than two decades — run a budget surplus — seems like a newsworthy event.
Yet to my surprise, I couldn’t find a word about it in major US media — not in the New York Times, the Associated Press, the Washington Post, or Reuters. (The New York Sun seems to be the only exception.)
I had to find the story in Australian media! (To be fair, the Agence France Presse also reported the story.)
One could argue that these outlets just aren’t very interested in Argentina’s politics and economics, but that’s not exactly true.
The Associated Press has covered Argentinian politics and Milei extensively, including a recent piece that reported how the new president’s policies were inducing “anxiety and resignation” in the populace. The same goes for Reuters and the other newspapers.
A cynic might suspect these media outlets simply don’t wish to report good news out of Argentina, now that Milei is president.
