https://www.bloomberg.com/news/articles/2024-07-18/argentina-economy-posts-best-month-under-milei-despite-austerity
Argentina’s economy recorded its best month in May since President Javier Milei took office late last year as investors look for signs of recovery from another recession.
Yeah, going full unregulated capitalist will lead to short term growth, no question about it. Long term consequences are the issue, though.
considering the industrial activity collapsed in may, the recession is still going, the economy minister has no idea what is going on (yesterday he talked about people having to sell dollars to pay taxes (despite campaigning to dollarize the economy and eliminate taxation) (Spanish link), i would say that this is short term collapse, leading to long term collapse
Argentina is far from unregulated. And oftentimes unregulated capitalism placed in dysfunctional economies leads to significant short term contraction. Long term growth depends on putting the correct regulation back into place.
Milei is shitty but ending currency controls will go a long way toward giving the economy a good base. Getting inflation down to a decent level will make it so people will actually use the peso and not do their damnedest to get a hold of a stable currency like the dollar. And that is very important because countries should not be relying on a foreign currency that does not care about local situations. Milei's idea to dollarize the economy is idiotic in the long run. But I doubt that will actually come into fruition.
It's all the real issue. This is why eating in moderation is a good idea, even when starving. You also avoid refeeding syndrome this way.
I don't disagree and it can be hard to swallow... and Argentina's previous government was unquestionably incompetent... but I too am worried that Argentina might austerity themselves into being the next Greece.
Economics is fucking hard dude.