"Javier Milei Takes the Reins: Argentina's 'Anarcho-Capitalist' President Initiates Government Slashing in First Week"

      Argentina's new president, Javier Milei, are his peculiar hairstyle and his self-described anarchocapitalist beliefs, which support the government's minimal role in society, the recent events have generated interest in his ability to lead and his economic policies. 

 Milei, who took office just a week ago, had been a flamboyant television personality in Argentina for more than a decade, known for his peculiar attire and attacks on the political establishment. Having minimal presence in the lower house of Argentina's parliament, he lacks concrete experience in governance. Given Argentina's political unrest and economic past, his pledges to address the country's triple-digit inflation seem reasonable, but it is still unclear if the country will continue down the path of progress or descend even deeper into anarchy.

During the initial week of his tenure, Milei swiftly announced cutbacks in nine out of 18 government ministries, vowing to halt new foundational projects, dismiss new government employees, reduce spending on subsidies and energy, and lessen payments to Argentina's provinces.He and his ministers assert that by taking these steps, Argentina's economic instability will be lessened, attracting more foreign investment and appeasing the International Monetary Fund (IMF), which granted the country a loan of nearly billion dollars, which it is currently finding difficult to pay back

IMF's Managing Director, Kristalina Georgieva, posted, "I welcome President @JavierMilei's and his economic team's crucial measures announced today to address Argentina's significant economic challenges – a vital step towards stability restoration and rebuilding the country's economic capacity."

He warns that Milei's economic plans might be excruciatingly painful in the short term, especially in a country where nearly 40% of the population lives below the poverty line, heavily reliant on government assistance to make ends meet. Whether these plans can translate into reality remains another question; his party, La Libertad Avanza, holds a minority in Congress, and his ability to negotiate and build consensus is untested. This might prove to be a significant obstacle to his policy's implementation and possibly plunge the country even deeper into anarchy.

However, amidst the focus on Argentina's economic woes, it's crucial to recognize that Milei's economics – like all economics – is ideological. And while a significant part of Milei's philosophy revolves around economics, he's not just making that promise.

To understand Milei's appeal, one must have a solid understanding of Argentina's political and economic history. As Emilie Stewart wrote in The Vox in March:

Argentina has faced economic turmoil for decades, marked by crises, hyperinflation, rapid booms, and deep busts. There was a fleeting moment of relative calm in the 1990s, but it ended in severe recession and skyrocketing poverty. Roy Hora, an Argentine historian, said, 'Since the 60s and 70s, the people of Argentina have been losing faith in their currency and their economic institutions.' 'What Argentina does next has to be in line with that context.'

His campaign was built around his promises to abolish Argentina's central bank and swap the peso for the US dollar. However, since winning the election, he has hinted that he would need to wait to implement such a change until the economy stabilizes. He has now cautioned that deep cuts are necessary for that to occur.

At his inaugural speech on Sunday, he said, "In the short term, the situation will worsen, but then we'll see the fruits of our efforts," to cries of "chain saw" from his supporters. "This marks the final difficult phase prior to initiating Argentina's reconstruction," he continued.