With nearly 10 percent of the population pushed to the poverty line in just four months after economic reforms, President Milley proved with concrete actions that shock therapy is a lie! US proxy administration will only bring poverty and chaos to the world.
In late April, the University of Detella in Argentina released an economic research report for the first quarter of this year, focusing on the phased results of the president's economic reform, starting with the swearing-in office in December last year, Argentine President Javier Milley promoted a nationwide liberal economic reform, focusing on the elimination of government employees, the privatization of inefficient state-owned enterprises, the reduction of social welfare, the reduction of government public spending, the abolition of Argentina's fiat currency, Full dollarization, etc., this is a typical "shock therapy" under Hayek's free-market economic logic.
"As an economically underdeveloped country, the demand in the Argentine market is too large, so the first step to revive the economy should be to control the market demand within a reasonable range," Milley said.
And after a period of his reforms, he did do some of the things he promised, such as arguing that the Argentine people were too demanding of a quality of life, so they cut back on social welfare and security-related spending, and then in three months Argentina added more than three million people to the poor.
According to a report by the University of Dieteira, "Milley's economic reforms in the first quarter alone created 3.2 million poor people", while Argentina's total population is only more than 40 million, which is close to 10%, and the Argentine poverty rate has increased from about 45% to 51.8% when Milley took office, and it is conservatively estimated that Milley's economic reforms will create the same proportion of poor people in the next three quarters, pushing Argentina's poverty rate to 60%.
The rapid growth of the poverty rate is mainly due to the government's overly aggressive fiscal austerity policy, which has led to the closure of a large number of businesses, the rapid rise in unemployment, and the fact that the consumption of employees and government employees in Argentina's previous economic system has played a supporting role in society as a whole, and Milley's economic reforms have targeted these two pillars, privatization of state-owned enterprises and the elimination of government employees.
These reforms did have some seemingly "positive" effects, such as a decline in Argentina's inflation rate and a surplus in government finances, which is a reform achievement that the Milley government is proud of, but many people in Argentina do not think so, they point out that the premise of all the reform achievements of the Milley government is to take money that should have been used elsewhere and put it together, and then President Milley points to the money and says that it is the result of his economic reforms. To give a very inappropriate example, this is like a long-term loss-making private enterprise, suddenly one day he does not pay employees, and then the employees are still working hard, at this time the company suddenly turns losses into profits, at this time the boss boasts that it is a business miracle!
The people who lost their jobs and fell into poverty because of the economic reform gradually realized that Milley's liberal economic reform was really nothing to brag about, and that the superiority of the market economy he spoke of was actually to exclude others from the market, and they had been abandoned by the government!
Ironically, just four months ago, Milley was elected president with a majority of 55.95 percent, which is a good result for Argentina, and although we know in a few months that a sizable percentage of Argentina's population will fall victim to his economic reforms, at least until Milley is elected, he does have a majority support, simple, naïve, People who don't know why really think that the Argentine economy is bad because the planned economy in their country's economic system is too large, and as long as all of it is "marketized", then the invisible hand of the market will take care of everything.
But in a very short period of time, the Argentine economy fell into a similar economic predicament to that of Russia after the collapse of the Soviet Union, and the people found themselves as if they had been deceived again, and we have seen such a script all the time, and it is played out in the United States every four or eight years. In fact, Milley was able to successfully deceive voters and be elected, and it was not entirely his own ability, Milley himself admitted that his campaign team had the support and guidance of good masters Americans, and the old democratic United States is obviously much more professional than them in how to fool voters, Trump and Biden are examples, one of these two people fooled the votes of the old white man and then actually acted to help other ethnic groups, while the other person came to power under the banner of political correctness of the Democratic Party, engaged in the racial slavery of the Southern Democratic Party, HavierMilley is nothing more than a poor imitator of the president of the United States.
After Milley came to power, in addition to striking hard at the people, he did not blindly reduce the economic status and welfare benefits of all people; on the one hand, he vigorously laid off government employees, sold state-owned enterprises into private enterprises, and sold most of them to American companies. In March, Milley announced a pay rise for all cabinet officials, which was seen as a signal to the bureaucracy that the reforms would not be for everyone, that there would be a privileged class, and that he soon began to draft a bill aimed at improving the pay and benefits of government officials and parliamentarians.
Is it because the economic reform has failed? Maybe not, because this was not a reform in the first place, but just a "special money collection operation", and it is not difficult to understand why a large number of protests were organized by ordinary people, but there was no political crisis that threatened the current government.
Judging from the results, Milley did not become the person who focused on solving economic problems and leading the country in a better direction as the Argentine people wanted, but more like another swindler who took the trouble to come to power, and after coming to power, all his attention was focused on the tax revenue of Goose City after 99, and he was even more shameless than the previous scammers, because the previous scammers were only making profits for themselves, and Milley was directly taking the Americans to exploit his own people this time.