Quotulatiousness

February 27, 2024

Javier Milei gets ghosted by US media after posting rare budget surplus in Argentina

Filed under: Americas, Economics, Government, Media — Tags: , , , , , — Nicholas @ 03:00

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.

January 26, 2024

Javier Milei to the parasites in Davos – You are the problem

Filed under: Americas, Economics, Media, Politics — Tags: , , , , , , — Nicholas @ 03:00

Jon Miltimore on Argentine President Javier Milei’s visit to the World Economic Forum in Davos earlier this month:

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

Javier Milei went to Davos to attend the 54th annual World Economic Forum (WEF) meeting last week.

Attendees of the meetings — often derided as global elites who bask in their pomp, privilege, and luxury as they try to address global problems with collectivist solutions — received a jarring message from Argentina’s newly-elected president: you are the problem.

“Today I’m here to tell you that the Western world is in danger,” Milei said in his prepared remarks. “And it is in danger because those who are supposed to have to defend the values of the West are co-opted by a vision of the world that inexorably leads to socialism, and thereby to poverty.”

[…]

This is just a sprinkling of the topics discussed in Davos, of course, but you’ll notice a common current that runs throughout them: the solution to virtually every problem requires more government and “collective action”, and less freedom.

This is precisely the kind of thinking Milei, a self-described libertarian, took aim at in his speech, which was a clarion call for leaders to reject collectivist thinking and embrace individual freedom.

“The main leaders of the Western world have abandoned the model of freedom for different versions of what we call collectivism,” Milei told the audience. “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.”

As Milei pointed out, few can better attest to the failures of collectivism than Argentines. The country surged to prosperity in the latter half of the nineteenth century, only to experience a massive drop in prosperity due to its embrace of Peronism, a blend of fascism and socialism named after the left-leaning revolutionary Juan Domingo Perón (1895–1974) who dominated Argentine politics for decades following his initial ascent to power in 1946.

While many of Milei’s predecessors, such as the jet-setting Cristina Fernández de Kirchner, a self-described Peronist and progressive, were delivering international speeches in Copenhagen about tackling climate change through “a new multilateralism”, Argentines watched their country slowly collapse into poverty.

By embracing protectionist trade policies and rampant government spending, Peronists set Argentina’s economy on fire. By 2023, 40 percent of the population was in poverty and inflation had reached more than 140 percent due to massive money printing. Because of the constantly eroding value of pesos, Argentine merchants are compelled to update prices on chalkboards throughout the day.

The human disaster in Argentina was not caused by climate change or AI or “misinformation”.

It was caused by Argentine politicians and bureaucrats abandoning free-market capitalism, an economic system that brought about unprecedented human prosperity across the globe, and a stark contrast to its various collectivist counterparts — fascism, Peronism, communism, anti-capitalism, etc.

This is why Mr. Milei called capitalism the only “morally desirable” economic system, and the only one that can alleviate global poverty.

January 15, 2024

The radical anti-state agenda of Argentina’s Javier Milei

Filed under: Americas, Economics, Liberty, Media, Politics — Tags: , , , — Nicholas @ 04:00

Jon Miltimore compares the Venezuelan experience after electing Hugo Chavez in 2007 to Argentina’s radically opposed choice to elect Javier Milei as President late in 2023:

Javier Milei, 8 October 2022.
Photo attributed to Vox España via Wikimedia Commons.

In November, the country elected libertarian Javier Milei as its new president. And whereas Hugo Chavez said, “All that was privatized, let it be nationalized”, Milei is essentially saying the opposite: All that was nationalized, let it be privatized.

Milei started by cutting in half the number of federal ministries in Argentina, reducing them from 18 to nine. This was followed by a massive currency devaluation.

Milei did not stop there. In a recent televised announcement, he said he would “repeal rules that impede the privatization of state companies”.

Those words were backed up by a 300-measure order designed to deregulate internet services, eliminate various government price controls, repeal laws that discourage foreign capital investment, abolish the Economy Ministry’s price observatory, and “prepare all state-owned companies to be privatized”.

Milei capped it off on Wednesday with a 351-page omnibus bill that takes aim at Argentina’s regulatory state and would grant Milei emergency powers “until December 31, 2025”.

Giving any president emergency powers is no small thing, even during a genuine crisis. Though Milei’s bill is designed to curb state power, not to expand it — a notable contrast to the typical crisis response paradigm — history and recent events in El Salvador show how emergency powers can be abused and used to violate human rights and liberty.

Whether Milei can get his full agenda through is unclear, but there’s reason for optimism.

His stunning election is itself evidence that Argentines are hungry for change. He’s already shown an impressive pragmatism to wed to his undeniable political flair, surrounding himself with a slew of talented policy experts. This includes Federico Sturzenegger, a former chief economist of Argentina’s central bank who two decades ago managed to turn around the failing Bank of the City of Buenos Aires. Sturzenegger’s reforms were so effective they became a Harvard case study.

Success is by no means certain, of course.

Recovering from decades of Peronism — a blend of socialism, nationalism, and fascism, which dominated Argentina’s political system for years — will not happen overnight. And Argentina’s political class has spent the last few years making a bad situation worse.

Still, the great economist Adam Smith once observed that the key to economic prosperity is surprisingly simple.

“Little else is requisite to carry a state to the highest degree of opulence from the lowest barbarism, but peace, easy taxes, and a tolerable administration of justice,” the Wealth of Nations author said.

Milei knows this. He has not just read Smith (in addition to Austrian school economists such as Friedrich Hayek and Ludwig von Mises). In a 2017 profile, he dubbed himself “Adam Smith’s heir.”

A heavy dose of Adam Smith is precisely what Argentina needs, and Milei has correctly diagnosed the affliction of Argentina’s once-prosperous economy.

“The state doesn’t create wealth; it only destroys it,” Milei said in a widely viewed 2023 interview.

December 3, 2023

“I find myself despising the elites I joined in ways that shock me. I have come to despise the woke left, their indifference to crime, their reveling in reverse-racism, their deep hatred of Western civilization”

Filed under: Britain, Europe, Media, Politics, USA — Tags: , , , , , , , , , — Nicholas @ 05:00

I’ve been reading Andrew Sullivan’s Substack since he started and it’s always been a pretty clear indicator that as soon as the name Trump is mentioned, the rest of the piece can be ignored because he’s been saying the same things for literally years now. This week’s article is a significant break with that tradition. It’s not that he suddenly likes Trump but that he seems to have gained more understanding about why other people support him:

As old-time Dishheads may recall, I was one of a handful of pundits who thought in early 2016 that Trump not only could, but probably would, win the election. I could feel his appeal in my lizard brain, and had long studied the fragility of liberal democracy in my frontal cortex. But the moment I knew his presidency was almost certain was when the Brexit result was announced in June, when everyone still assumed Hillary was a shoo-in. Something was stirring. And that’s why, after my annual trip back to Britain last week, I’m feeling the nausea again.

[…]

Add to that anger a lockdown far more intense than in the US and a period of crippling inflation, and you have a recipe that will likely lead to a Labour landslide next year. And in so many countries right now, for a variety of reasons, you see the same “blow it all up” mentality, turfing out incumbents mercilessly, often in favor of performative populists of various hues and flavors.

Look at the Netherlands: a progressive country that just saw Geert Wilders’ hard-right anti-immigration party go from 10 percent in 2021 to 23.5 percent of the vote, and become by far the biggest party in the Dutch House of Representatives, with center-right parties open to joining them. Or Argentina, where a weirdly coiffed, former rock-singer, Javier Milei — who had a near mental breakdown in a televised interview during the campaign, complaining about voices that weren’t there — wiped out the Peronist establishment in a landslide.

Orbán’s decisive re-election, Meloni’s electoral victory in Italy, and Sweden’s lurch to the right all suggest a sudden widening of the Overton window in much of Europe. In Germany, the AfD, the far-right movement, is now polling at 21 percent of the electorate, compared with 15 percent for Chancellor Scholz’s Social Democrats and 9 percent for the Greens. None of it is particularly coherent. Milei is Steve Forbes in a very bad toupee — about as far away from Boris’ Red Toryism or entitlement-friendly Trumpism as you can get. The only truly consistent thing is the ridiculous hair, and contempt for elites.

And the fear of the crazy right has gone. Milei and Wilders instantly moderated on some of their most outlandish positions, as soon as power was within reach. No, Milei won’t dollarize the Argentine economy, it turns out; and no, Wilders won’t ban mosques, as he tries to build a coalition government. Meloni has talked up immigration control, but in power, she hasn’t done much about it, and her support for Ukraine and the EU has been a big surprise. Poland’s hard-right party showed it could not stay in power forever this year, and in Spain, Vox lost ground. But in all this, a taboo has been broken — the same kind of taboo that the election of Donald Trump represented. The small-c conservatism of the Western electorate has expired.

That’s why I find the re-election of Joe Biden so hard to imagine. Biden is the incumbent of all incumbents. He became a senator in 1973! He has been vice president for eight years and president for four. He’s extremely old for the job he is doing, and everyone knows it. He has presided over inflation higher than at any time since the 1970s, and a huge new wave of legal and illegal immigration. We may now have a higher percentage of the population that is foreign-born than in the entire history of this country of immigration. Americans’ support for a border wall is the highest it’s been since 2016.

And Gallup’s latest polling on how the public feels about crime should terrify the Democrats. Coming back to DC this week after seven months away, I’m struck by how stark the decline has become. It says something when a city is experiencing a massive wave of carjackings, bars the cops from pursuing them, and just hands out free AirTags so you can track your stolen car yourself.

And the key, lame argument from Biden will be that Trump is too big a risk to take. He’s right. Broadly speaking, I agree with Bob Kagan on the crazed ambitions of this tyrant wannabe. But how has that argument worked out so far? Impeachments and indictments seem to have strengthened, not weakened him. And what we’re seeing all over the world is that voters are rushing toward the risky candidates, not away from them.

And Trump has already been in office for four years, and … democracy didn’t end, did it? Or at least, that’s what his supporters will say. They’ll remember the pre-Covid years as the good old days (and economically they wouldn’t be wrong), and also vent anger at an elite that seems to care more about pronouns and “equity” than protecting the border or controlling crime — the core functions of government. I’d be worried if Biden were ahead of Trump by five points in the battleground states. But he’s actually behind.

And though I will never vote for Trump, in my lizard brain, I kind of get the appeal. Inflation and mass immigration, alongside a bewildering and compulsory cultural revolution, are the kind of uncontrollable things that make people vent, especially if the president seems oblivious to these concerns — as Biden does. When Elon Musk f-bombed on Andrew Ross Sorkin and the advertisers who are boycotting X this week, the rational part of me shook my head. He’s bonkers and may see his company collapse from his whims and rages.

But at some deeper level, I also wanted to yell “Fuck yeah!” I find myself despising the elites I joined in ways that shock me. I have come to despise the woke left, their indifference to crime, their reveling in reverse-racism, their deep hatred of Western civilization. I hate how they’ve taken so much of the progress we made on gay integration and thrown it all away in transqueer solipsism. I loathe their piety and certainty and smugness. I found their instant condemnation of Israel, even as October 7 was taking place, shocking.

November 30, 2023

The challenge facing Javier Milei

Filed under: Americas, Bureaucracy, Economics, Government, Liberty, Media, Politics — Tags: , , , , — Nicholas @ 03:00

Craig Pirrong outlines just how much work Argentinian President-Elect Javier Milei will have to accomplish to begin to bring Argentina’s government in line with his electoral mandate:

When I wrote Milei is not a leftist, let’s say that rather understates the matter. Milei loathes leftists and leftism, and repeatedly refers to them on television and in public appearances in scatalogical terms, calling them “leftards”. He despises collectivism, and asserts bluntly that leftists are out to destroy you. His mission is to destroy them first.

As someone so vehemently hostile to the left and well outside conventional political categories, Milei’s victory has triggered a mass moral panic, especially in the media. The New York Times coverage was (unintentionally) hilarious: “Some voters were turned off by his past outbursts and extreme comments over years of work as a television pundit and personality.” Well, obviously a lot more weren’t, but I guess one has to take solace where one can, eh, NYT?

Milei’s agenda is indeed a radical one, especially for a statist basket case like Argentina. To combat the country’s massive (140 per cent annualised) inflation, Milei says he will dollarise the economy and eliminate (“burn down”) the central bank. He also wants to reduce radically the role of the state in Argentina’s economy. He says he wants to “chainsaw” the government – and emphasises the point by campaigning with an actual chainsaw.

His election on this programme sparked a rally in Argentine financial markets, with government debt rising modestly and stock prices rallying smartly.

Will Milei be able to deliver? Some early commentary has doubted his ability to govern based on the fact that his party’s representation in the legislature is well below a majority. That may be an issue, but not the major obstacle to Milei’s ability to transform Argentina into what it was at the dawn of the 21st century: an advanced, rapidly growing economy and a relatively free society.

The real obstacle is one that is faced by anti-statists everywhere – the bureaucracy. (I do not say “civil service” because that phrase is at best aspirational and more realistically a patent falsehood. Akin to the Holy Roman Empire that was neither holy nor Roman, the “civil service” is neither civil nor a service.)

Argentina’s bloated state is its own clientele with its own interests, mainly self-preservation and an expansion of its powers. Moreover, it has created a whole host of patronage clients in business and labour. Milei’s agenda is anathema to this nexus of public and private interests. They will make war to the knife to subvert it.

Even a president with an electoral mandate faces formidable obstacles to implementing his agenda. The most important obstacle is what economists call an “agency problem”. The bureaucrats are agents of the chief executive, but it can be nigh unto impossible to get these agents to implement the executive’s directives if they don’t want to. Their incentives are not aligned with the executive, and are often antithetical. As a result, they resist and often act at cross purposes with the executive.

The modern chief executive’s power to force his bureaucratic agents to toe the line is severely circumscribed. At best, the executive can make appointments at the upper levels of the bureaucracy (such as the heads of ministries or departments), but the career bureaucrats who can make or break the executive’s policy are beyond his reach, and not subject to any punishment if they subvert the executive’s agenda.

November 26, 2023

It’s apparently political earthquake season

Filed under: Americas, Europe, Government, Liberty — Tags: , , , , , , , , — Nicholas @ 05:00

Elizabeth Nickson wonders if you can feel the Earth shaking in your area:

Did you hear the roar on the streets when Milei won Argentina? It built and built, and then everyone was out on the streets shouting, from windows, inside shops, houses. It is the future, all over the world. The Netherlands on Friday. Same same. Universal rejoicing.

Absurdistan does a solid line in doom, but our firmly held first principle is that every single one of us should be two or three times as rich, with massively increased scope and ability to do the things we want to do. Defeating the criminal cartel that runs Big Pharma, Big Ag, Big Government, Big Tech and Big Charity will light up the galaxy if not the universe. And … this. Especially this:

Unlike almost everyone in the media, Absurdistan knows regulation is the principal reason we are hornswoggled serfs. Even Trump’s team was surprised at the economic boom that came from his mild de-regulation; they thought tax relief was the key. It was important, none of us should be paying more than 25% in taxes, if that, but the regulation! You have no earthly idea how fiendish it has become until you start a business or require permission to create anything in the material world. Few journalists ever do that, the most they do is join a bank in “communications”, design an app or website, do PR, or “consult”. They are virtually, to a man or woman, children in the real world. So no one reports on the most brutal crippler of every man, woman and child on earth. Equally, virtually no writer I read has any grasp on the ingenuity, the creativity, the strength of the ordinary man. They all seem to think we need guidance from them, which is laughable. They have screwed up everything so utterly, we teeter daily on the edge of fiscal catastrophe.

Bloomberg reports on Milei victory

When Vivek Ramaswamy proposed instantly firing 50% of federal bureaucrats on Day One, I stood on my office chair and cheered.

When Javier Milei tore strips of paper representing government ministries off the whiteboard, I had to go out and run around the house a few times.

Africa is not limited by anything but confiscatory corrupt government, as asserted by Magatte Wade in her new book. Wade should be running things in Africa, which is polluted by commies, plutocrats, crooked multinationals, ravening bureaucrats, corrupt politicians and the brutalist green movement. The Chinese would stun the world if they could get rid of the vicious predatory communist regime that enslaves every man, woman and child. And not in the sense that they are “taking over”.

The mop-up will take decades. But unpicking the bad regs and shooing the bad legislators off to permanent exile, prosecuting the army of government thieves, and creating a multi-polar world, will be more absorbing than our endless self-cherishing, self-indulgence. Have we not all shopped enough? We have powerful enemies, but they are fully aware of how destructive they have been, their guilt written on their exhausted pouchy faces.

Trump is a symptom, not a cause

People fighting the Borg wish for leaders but this is not a movement that requires leadership by anyone but each and every one of us. Trump is a symptom, not a cause. This is multi-headed, like Medusa, representing tens, hundreds of millions of individuals saying NO. Real politicians like Mike Johnson, Geert Wilders, Pierre Poilievre, Javier Milei, and Danielle Smith are listening to us and stepping up.

November 21, 2023

Javier Gerardo Milei, President-elect of Argentina

Filed under: Americas, Economics, Liberty, Politics — Tags: , , , — Nicholas @ 03:00

On the current evidence, Argentina has finally decided to turn away from both communism and Peronism to try something radically different in the person of newly elected Javier Gerardo Milei, variously described (disapprovingly) in the English-language press as “far right”, “extreme right”, “Trump-like”, and most alarmingly, “libertarian”. Here’s what Wikipedia had to say about him (before the edit wars get serious on his page):

Javier Milei, 8 October 2022.
Photo attributed to Vox España via Wikimedia Commons.

Javier Gerardo Milei (/miˈleɪ/ mee-LAY, Spanish pronunciation: [xaˈβjeɾ xeˈɾaɾðo miˈlej]; born 22 October 1970) is an Argentine politician, economist, and author who is the President-elect of Argentina.[1] Before rising to political prominence, Milei initially gained notability as an economist, as the author of multiple books on economics and politics, and for his distinct political philosophy.

As an economist, Milei is a vocal proponent of the Austrian School. He has critiqued the fiscal policies of various Argentine administrations and he advocates for reduced government spending. As a university professor, he has taught courses in macroeconomics, economic growth, microeconomics, and mathematics for economists.[2] He is also the author of numerous books and has hosted radio programs, including Demoliendo mitos and Cátedra libre. In 2021, he entered politics and was elected as a national deputy representing the City of Buenos Aires for La Libertad Avanza. During his tenure, he limited his legislative activities to voting, focusing instead on critiquing what he describes as Argentina’s political elite and its propensity for high government spending. Milei has pledged not to raise taxes and has donated his national deputy salary through a monthly raffle. He was a presidential candidate in the upcoming 2023 general election,[3] with Victoria Villarruel as his vice-presidential running mate.[4] He advanced to the run-off of the presidential election, in which he faced Sergio Massa.[5] On 19 November 2023, he won the run-off election with 56% of the vote to Massa’s 44% to become President-elect.[6]

David Warren certainly seems to like the cut of Milei’s jib:

Mr Milei not only swept the “youth” vote, but he did that while declaring: “Killing children is not a human right!” He mocked an accumulation of political corrections, while dropping a few more “flinch bombs” worthy of the XVIIth-century bishops who evangelized that country.

The outgoing president, another tedious Peronist like our pope, shared the old presidential palace with decorative plants. Carlos, my correspondent, claims that he could make Justin Trudeau look intelligent. If true, this would be an extraordinary accomplishment. He also leaves an amazing national debt, hyperinflation, energy shortages, &c.

Mr Milei seems to have won as Mr Trump once did in the United States: by not flinching. A point may be reached in national decline when even the young will pitch out the Peronistas. Godspeed to them, when they reach this point.

Nevertheless, one must continue to despise politics. Carlos echoes Borges: “No matter how bad an Argentine government is, the next will be worse”.

The Buenos Aires Times, quoted by Brian Peckford:

Milei promised to return Argentina, one of the richest countries in the world a century ago, to its former glory, after decades of stagnation, mostly under the populist Peronist coalition – big on welfare and government spending.

The president-elect vowed “a limited government, respect for private property and free trade. The model of decadence has come to an end. There is no way back.”

Milei offered special thanks to former president Mauricio Macri and failed opposition presidential candidate Patricia Bullrich, who threw their support behind him after defeat in the first round and helped bring over their voters to his force.

He also thanked scrutineers from his party and those from the opposition PRO party that had worked to protect and count votes at polling stations.

Milei ended his speech with his traditional trademark rallying call: “Viva la libertad carajo!” (“fucking long live freedom”).

News of the libertarian’s victory prompted wild scenes from supporters on the streets of Buenos Aires. The area around the Hotel Libertador, his traditional bunker for election night, was swamped by revellers celebrating his win.

It’s often said that socialists will dismiss any failures by socialist governments by declaring that it wasn’t “real socialism”. This is equally true for other political and philosophical beliefs:

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