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Argentina's Economic Shifts: Balancing Inflation Control and Growing Poverty

President Javier Milei's controversial policies are garnering both support and backlash as they impact Argentina's struggling population.

By Daniel Politi, Lucía Cholakian Herrera and Ana IonovaSource: nytimes.com1 min read
Argentina's Economic Shifts: Balancing Inflation Control and Growing Poverty
Image via nytimes.com

In brief

A year into his presidency, Javier Milei has gained popularity for managing inflation, yet his aggressive economic reforms have placed millions of Argentines in poverty, sparking a divide in public opinion.

In Argentina, President Javier Milei's first year has stirred a mix of admiration and despair among citizens. The right-wing libertarian's policies, which prioritize aggressive economic reforms, have drawn the attention of foreign leaders, including President-elect Donald J. Trump, who praised Milei's achievements at a recent gala. Current surveys suggest that around 56 percent of Argentines hold a favorable view of Milei, making him one of the more esteemed leaders in the nation’s recent history.However, this acclaim is shadowed by significant hardships that accompany Milei’s austerity measures. The cuts have severely compromised essential services, driving over five million Argentines into poverty. Supporters of Milei, like Buenos Aires butcher Marcelo Capobianco, express gratitude for a leader who, in their view, has restored hope amid economic chaos. On the flip side, critics voice concerns that while the president might be achieving his goals to tackle inflation—currently one of the highest globally—the human cost is substantial. The balance of Milei’s successes and failures serves as a reflection of the broader struggles faced by Argentina as it seeks to navigate economic recovery while safeguarding the well-being of its people.

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