Can Milei’s New Budget Revive Argentina’s Economy?

On Sunday, Milei presented an optimistic outlook for the economy alongside even more cuts to public services. But with Argentina still in recession and more signs of decline, have his radical economic policies already ran out of steam?

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[TLDRnewsGLOBAL]

CORRECTION: At 6:30, we (embarrassingly) claim that a 4% monthly inflation rate translates to an annual inflation rate of 160%. This is incorrect - it actually translates to an annual rate of 60% (we forgot to subtract 1 when we did the maths). Apologies for this sloppy error, and we hope you nonetheless enjoyed the video!

[EmilJunker]

A 4% monthly inflation rate translates to a yearly inflation of 1.04^12 which is about 1.6, meaning 60% inflation, not 160% like you stated in the video! So Milei's target of 18% YoY inflation actually isn't copletely unrealistic (but probably still way too optimistic)

[povilasmatusevicius]

4% monthly inflation is 60% yearly inflation, not 160%.

[viviancarolgioao]

It's sad how difficult things have become in the present generation. I was wondering how to utilise some money I had. I used some of it for e-commerce business, but that sank. I'm thinking of how to use what's left to invest, but I don't really know which way to go.

[elpanchomayonesa]

people outside of argentina talk about the cuts as if 60% of the population being below the poverty line wasn't a big thing

[frankpred]

Yesterday I saw an article saying Milei was gaining traction, today he is out of steam. I feel like I’m seeing a modern telling of ‘The Little Engine that Could’ play out here but I can only hope for the people of Argentina that the ending is like the children’s tale.

[jonobidonofanas]

It would have been strange if Milei would have fixed Argentina in a few months when the country has been struggling for decades. Only time will tell if Milei can fix the country

[primal]

I hope the lives of the people of Argentina get better

[lordmashie]

Argentina definitely feels like an economic experiment rn. The results would be interesting.

[andrecruz]

in a country with high debt and high inflation, things were always going to get worse before they got better.
This Shouldn't be news for anyone.

[lelik]

When public sector spending is a large chunk of GDP (37%), cutting the public sector spending is going to reduce GDP until the private sector can grow to step in. So, yes, GDP will fall.

[watchdealer]

A 60% inflation rate is phenomenal considering inflation was hitting 211% in January of 2024.

[arturcostrino]

"It is not clear why he is increasing the spending in the military". Wait until the next Argentinian election and you will understand why.

[MaxTheLazyCat]

I just hope the people of argentina eventually do get a better country

[Robnson]

He is doing good things for Argentina and people should be hopeful and get behind him. The alternative is so much worse.

[zUJEjVD]

Sure, cut health budgets and quadruple military spending on a continent that has had more military coups than actual wars. The only wars since WW2 being a short one between Ecuador and Peru in 1995 and a war between Argentina and the UK over the Falkland Islands in 1982.

Sure Argentina is abundant in natural resources and so may be unable to go the Costa Rica route, but surely the status quo is sufficient in the current geopolitical climate.

[santigamerprogamer]

Hi, argentinian here. I've seen a lot of comments talking about how "this proves how free market and shiet doesn't work" and things alike, but I haven't seen anyone talking about real solutions, so could you, dear foreigners who just watched a video explain to me your plans to save Argentina? The more civil the discussion, the better.

[Magdalena-ul]

We Are in Unchartered Financial Waters! every day we encounter challenges that have become the new standard. Although we previously perceived it as a crisis, we now acknowledge it as the new normal and must adapt accordingly. Given the current economic difficulties that the country is experiencing in 2024, how can we enhance our earnings during this period of adjustment? I cannot let my $680, 000 savings vanish after putting in so much effort to accumulate them.

[srdjan]

Cutting budgets to school and healthcare while increasing military budget? The writings on the wall with this one

[Schnitzelfox]

Milei: I am a libetarian and anarchist.
Also Milei: lets quadrouple military spending.