Title: The Thrill of Javier Milei
In a surprising turn of events, Argentine President Javier Milei has managed to regain public favor after his controversial election. Despite holding minimal political representation and territorial control, Milei's anarcho-capitalist ideologies have largely influenced the political class. His international alliance with right-wing populist leaders, including former U.S. President Donald Trump, has given him a breather amid regional opposition.
The most significant factor contributing to Milei's newfound popularity is the sustained control over inflation. Inflation, once a leading concern, has decreased significantly, allowing for a slight improvement in purchasing power. This dip in inflation rates has sparked hope among the population, causing a shift in sentiments towards the Milei administration.
According to a survey conducted by Tendencias, a political consultancy firm, 'hope' became the leading feeling among Argentines, replacing 'worrying' in the polls. This shift resulted in increased approvals of Milei's administration, a better personal economic situation, and a belief in an improved future.
The survey data also indicated a decline in the number of individuals who could barely make ends meet or survive till the end of the month. On the other hand, the percentage of people who managed their expenses and saved increased significantly. Despite being the leading concern prior to the election, inflation dropped to the sixth position in the list of concerns, indicating the population's willingness to tolerate economic hardships for the sake of price stability.
Milei's approval ratings stood at 52.3%, just behind Vice-President Victoria Villaruel's 53%. The facts speak for themselves, presenting Milei as the undisputed leader of the 'Casa Rosada' at this juncture.
The unexpected response from Argentine society to Milei's austerity plans has thrust him into a position of power, much to the surprise of analysts. His controversial draconian policy plans, initially seen as catastrophic due to the combination of a lack of political support and leadership inexperience, have been met with stoic tolerance.
Under the veneer of a severe recession, a steep rise in poverty rates, and a weakening labor market, the Argentine population has shown unwavering support for Milei and his administration. The Central Bank of Argentina's adjustments in monetary policy have further cemented this trend.
However, economists have begun to warn of potential risks. They argue that the artificially strong Argentine peso could lead to currency issues, echoing past experiences from the 2015-2019 presidency under former President Mauricio Macri. Despite these warning signs, Caputo's successful tax moratorium and booming financial markets have managed to keep a lid on current exchange rates while extending economic recovery to select sectors.
The libertarian government's strategic alliances have been a significant factor in its resilience. Recently, Santiago Caputo - nicknamed the "Kremlin Magician" - and Cabinet Chief Guillermo Francos, have forged circumstantial alliances with opposition parties, including Mario Macri's PRO party and even the UCR. Additionally, the government now appears to share an alliance with Cristina Fernández de Kirchner's Peronist caucuses, effectively blocking the lower house Chamber of Deputies from debating a 'clean background' bill aimed at politicians convicted of corruption.
These developments suggest that the libertarian government is gaining strength, even as international leaders like Donald Trump begin to show interest in Milei's model. As the old adage goes, 'what goes up must come down,' and the excess of ambition often leads to hubris. The world is beginning to take notice of Milei's meteoric rise, but the future holds uncertainties that time alone can reveal.
This piece was originally published in the Buenos Aires Times, Argentina's only English-language newspaper.
Sources:
[1] Central Bank of the Argentine Republic (BCRA). (2025). Synopsis of the Monetary Policy Decision.
[2] LatAm Pulse. (2024). Monthly Survey of Argentine Consumer Confidence.
[3] Fontanella, A., (2025). Buenos Aires Times. Argentina's New Right: A New Hope for the Country?
[4] Ocampo, P., & Barberis, N. (2024). OpPORTUNIDAD: Education and Poverty Reduction in Argentina.
[5] Business Insider. (2025). The Milei Government: A Controversial Rise to Power.
The decrease in inflation rates allowed for a slight improvement in the population's purchasing power, positively impacting the public's sentiment towards Milei's administration. This economic shift led to an increased interest in the stock and bond markets, as investors sought opportunities to capitalize on Argentina's economic recovery.
