Why It Looks Like Milei’s Reforms Might Actually Be Working
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We're now just over 100 days into Milei's premiership with drastic cuts and a sharp currency devaluation, he's now in a race against the clock to get the economy back on track. In this video, we're going to take a look at Argentina's economy, whether Milei's reforms are working, and why he's still popular.
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00:00 - Introduction
00:44 - Milei's Objectives
01:31 - Balancing the Budget
05:34 - Dollarisation
06:21 - Staying Popular
07:46 - Sponsored Content
I think milei being honest and saying its going to suck at first really helps him hold on to support.
what they dont realize is while it will SUCK at first, it will never be good at the long run if he does what he says he will do. I dont think alot of people truly know what dollarization means for an economy, and the video doesnt explain it. Im Turkish, and our biggest, long-term PROBLEM is dollarization. Bc while dollarization provides short-term stability, it takes gives all economic control of the nation to AMERICA. Now if America lowers interest rates bc they want economic growth, that might be the opposite of what you need and your economy will be driven into the ground but you will have 0 ways of fighting it. The opposite can also happen where the USA experiences a crash, dollars value falls and they raise interest, that will FORCE you into a recession when you couldve been experiencing a boom. From now on you will be tied to the giant, praying their economic situation 100% mirrors yours. But it rarely will, considering Argentina is a developping nation and USA is an already developped one with much different priorities. I get not trusting your politicians but what they are doing is like committing suicide bc you are insecure about your looks. The privitization is also as deadly in the long-term but that can be more complicated, dollarization on the other hand has complete consensus on its consequences
@@meretricioussimp7759 thank you. Milei is a fascist. a lot of what is going on in Argentina resembles Mussolini era Italy
@@meretricioussimp7759your country is dollarized because the Turkish Lira is a horrible currency that Erdogan has ran into the ground. The only reason dollarization took place is Erdogan's fiscal policy that transferred wealth from the poor to business owners via inflation.
I'm no economist but dollarization is likely the effect of the Turkish Lira going from 10TRY per Euro to 35TRY in less than 3 years
@@meretricioussimp7759he's doing exactly what Chile and New Zealand did 40 years ago and, and now Chile is the wealthiest and most developed country in south America and New Zealand is one of the richest countries in the world.
Milei is a libertarian and wants there to be as much ease to do business as possible, and as much freedom as possible. And everyone knows that Ease of doing business and Economic Freedom are very strongly correlated to development and overall wealth.
Dollarization is just a way to strip the government of as much power as possible to levy taxes on its citizens (no dollarization = inflation, inflation = hidden taxes on liquidities and cash)
@@meretricioussimp7759 Hyper inflation is a lot worse then dollarization. I suspect milei has a good chance of atleast improving the current situation.
Just be honest with people. He said it was going to suck. He didn't sugarcoat it.
So he's like that guy from Shreck, eh? "Some of you will die, but that's a sacrifice I'm willing to make."
Also very honest, yes?
@@miriamweller812 There is a huge difference between Farquaad sending people out to die to get him a wife and Millei moving the country into a rough transition period from an already fundamentally broken economy into something sustainable.
@miriamweller812 better than some fairy pretending everything is gonna be alright, while knowing perfectly well it isn't like the second movie 😂
@@miriamweller812 Well people saw that and voted him in anyway, so they must be willing to make sacrifices for prosperity too.
@@miriamweller812 He is literally saving people, not sacrificing. Hardly comparable.
Argentinian here. A few notes. Apparently the idea isnt to ditch the Peso in favor of the Dollar, its more about a free use of EVERY currency out there, which taking into account our history of using the us dollar for savings, will result on that currency taking over the peso. But who knows really. As for China, he always said the private sector can do business with any country, yet Argentina as a state will try to avoid that. Las week for example, they announced that a port in the south that aims to aid ships crossin both oceans or reaching antarctica will no longer be a collab between argentina and china, and will recieve financial help from the US instead.
Great summary, our political-economic history and present is incredibly convoluted, even for us.
Argentina's debt is in dollars, the less it uses dollars, the lesser the dollar debt will grow. It can do by trading with China which won't require them to use dollars. What do you think if China will just accept dollars for its goods? After all, China is Argentina's 2nd biggest trading partner. Where will Argentina get that dollar, which it lacks of, to buy those chinese goods? - it'll have to buy it from the US thus increasing again its dollar debt.
@@rap3208 You are forgetting details of Argentina's economy, which is understandable, as Argentina economy is absolutely bonkers... The people of Argentina hold the second largest reserve of dollar bills in the world, amount to about 400 billon USD according to recent measures... all in the black market, because the government was a plethora of morons and thiefs, so people protected themselves from that. So there you have from where the dollars will come, from the people using them in the streets
@@fedediazceo yeah, they just can't get their acts together. They can for a few years, then after disaster again. They have always been up and down economy.
@@rap3208 that's true. The only way to fix that would be to cement changes in the constitution to avoid this to happen again, but that is nearly impossible. Eliminating the official currency is a step in the right direction, but not a definitive solution. Who knows, there's a lot of potential in the country, if finally the people there realize it, could be a wind of change
@@fedediazceoand if lucky the us will follow with the libertarian party and then here in the the uk with our tiny one
When watching news like this from foreign far away countries, it is good to see the locals correcting or collaborating the news story.
taking the words of peronists isnt smart as they are the reason the country was so fucked in the first place
Showing once again why comment section is important
don't believe anything about the will of milei to save Argentina, he is anarchocapitalist, he doesn't believe in states nor helping people.
Agreed. but the term you are looking for is "corroborating," not "collaborating."
@@eddietat95 My thought exactly! I was going to make this comment but you beat me to it.
Concerning the China trade thing. He was very clear that he didn't want people to stop trading with China. His goal was to stop the government from trading with China.
Dude spend years trash talking China and when China gave him a lesson reminding him that they are the biggest investors snd trading partners, then almost cutting swap out dude went "it was a prank bro argentina will trade whit china"....
And specifically, he did not want to be party to "China" manipulating the Argentine government.
@@varimatra2088 do you even understand his ideology? He is pro FREE TRADE, but he is against the government of china gaining influence in the country. A lot of countries are perusing this policy
@@arfajob4246 manipulating 😂😂😂
That’s basically the same thing in this day. All trade has to be conducted via government agencies one way or another
Good luck to Argentina.
Make ARGENTINA Great Again 😎 Milei
@@Booz2020again?😂
It used to bbe great literally a century ago @imperialist4862
Quite a long time has passed
@@Booz2020 Again? It's never been great lmao
(we're keeping the islands)
Well he run a campaign saying everything was going to really suck at first, that gives him a lot of support when things suck
That was a sensible thing to say ... And he probably believes that things will become better in a few years, after his "shock therapy". He will retain his support for at least a year. But, if things keep getting worse for most Argentinans, he will loose his support within three years.
He also run his carreer saying that he wouldnt touch public universities and yet we are facing a near shutdown because they dint have enough money to pay for electeicity since they have the same budget from 2023 wich has seen almost a 300% of inflation. Also he said he wouldnt touch retirement salaries and yet the old people are paying this adjustment. Doesnt invest in teachers, medicine, hospitals, public services, public transport, social fees for vulnerable people, doesnt let importation of oncologic treatments enter the country and doesnt want to give food to shelters, he denies we had a dictatorship over the 70's and freely lend land without passing through the correct stages of legislation to aprove USA army to take for free a military base. He sweares to mentally discapacitated people on twitter and hates women. We are currently most of us unable to eat the 3 meals because he let every sector of economy use their own criteria to handle prices so they put whatever they want on price tags and they keep augmenting prices even if salaries dont. He also wants to shut down cientific research, cinema, theater, official communications and by himself its inserting Argentina in external wars just because of male pride by his own words. Honestly...we couldnt be worse right now
Also they promote violence making people run their cars to people protesting and celebrating it, believed inflation data from a bot from twitter that was trolling live in an interview, these are facts, yet we are having memes all over the place to cope with the situation, at least laughs are everywhere 😅
He has no support nowadays. Many are wondering if he will finish his term as president.
@@Mrpozo69 That's an enormous lie. I am Argentinian, I am in the ground, I communicate with people of different social backgrounds, and there is a sense of hope and an idea that this time things will go better. Whether that hope and support reppresents what it will actually happen, is another thing.
As a Chilean I really hope Argentina gets in better shape. All of Latin America would be glad to see them succeed.
Btw, here in Santiago we are seeing something that had not happen for a while: Argentinians coming in mass to shop. I was in IKEA last week and most people shopping that day were from beyond the Andes. Clearly the inflation there has gone through the roof so it's more convenient for them to cross the border and shop for household items, electronics, and clothes in our stores, even after the inflation we went through and the high dollar exchange rate we still have. It's kind of crazy bc last year, before Milei, things were opposite: Chileans crossed the border in huge numbers to buy mostly food in Argentina, bc the devaluation of the peso there made everything really cheap for us.
you guys are lucky you have a socialist president who actually sounds like he cares about your people, as hard as that sounds given hes a politician. Unless, I'm wrong...
@jasonhudson7552 Boric's government, in economic terms, has surprisingly been similar to the center-left governments we had decades ago, same ones his coalition hated, lol. People here love to complain that Boric "wrecked the economy" but, truthfully, he started with everything in horrible shape after the riots of 2019 and the pandemic. Lately the statistics have demostrated his Finance minister and the Central Bank have done a good enough job and we're recovering better than what the doomsayers have been saying. Chile has, so far - thankfully! - kept strong-ish institutions and a moderate way to treat most things, although we are dealing with political polarization as it has been the case elsewhere in the West
@@jasonhudson7552The thing about having a socialist in charge of Chile is that Chile is still a developed, fundamentally free market economy. Slapping a bit of socialism on top of that tends to work very, very well.
But having a system that is core socialist never works. The best systems are always capitalist-with-exceptions (or perhaps market-driven-with-exceptions, if capitalist means something other than a market-driven economy to you), and that's what Chile is.
Chile had to go through about two generations of hardcore right wing economic rule to get there, though. Most likely, Argentina will need to do the same. Hopefully it will be a faster process, though.
@@AUniqueHandleName444 And being "free market" was how the USSR went from a semi-feudal country in the 19th century to the second world economic power in the 20th century. apparently
"free market" economies are just tools to funnel money to the 1%
The post war rebuild of west europe and japan happened because the US dropped a fuck ton of money there for geopolitical reasons.
Argentina is not in that position.
@@AUniqueHandleName444 certainly an interesting point. But I think it comes down to having a compatible economic system with the rest of the world. After 1976 China wasn’t far right wing obviously, but finding a place in global economics became one of their main priorities.
Only Argentinians can answer if the policies have worked. I hope they have worked. Argentina should be a big player on the global stage.
The short and sweet is that macro numbers (what the video focuses on) are improving, but quality of life for the regular Argentinian has gotten worse. To give a quick example: prices for everyday goods have spiked so much that they are now comparable to European prices, yet the average Argentinian earns around 1/8 of what a regular European earns.
The cost of the reforms is being paid by workers and retired people: that's why it's so key for Milei to start showing results fast, before popularity starts fading.
@@rodrigolealmartir5902 they have to endure everything what is happening if they get rid of them the politicians and they cronies Argentina will be prosperous once again
The average person is now doing much worse. Currency devaluation does help the economy but you do need to impliment systems to protect average people from it and that's not what Milei is doing. Also with how low the taxes are it will make Argentina's inequality even worse.
Argentina's GDP likely will rise but this might be on paper only.
Behold neo-liberal economics. The numbers go up.
All of them. Including wealth inequality, poverty and homelessness.
@@rodrigolealmartir5902 I mean it was going to happen no matter what. The only question was how much and if they could recover. Argentina has been in a pretty bad place for a long time and it is surprising it lasted as long as it has.
There is one bit of misinformation that I see repeated everywhere, Milei didn't suddenly changed his policy of dollarization in favour of currency competition, as the later has always been his policy.
The term "dollarization" was used as a simplification due to the fact that Argentinians would most likely choose the dollar for their daily exchanges instead of let's say the Brazilian real, since argentinians are already accustomed to using the US dollar for their savings, therefore the term "dollarization" was chosen. This isn't something "radical" or unique in the region either as neighbouring Uruguay has this exact policy implemented.
But didn't Milei say that he also planned to close down the central bank?
What you described is exactly what dollarization means. You can't handle the fact that a BRICS-applicant ditched the 3rd-world-country club in favor of U.S. dollar.
@@seneca983 Yes, so there is no longer a monopoly on legal tender. A central bank means a monopoly of credit in the hands of the state. If people are free to use whatever currency they want, why would they need a central bank? The state no longer can print the money they hold, instead the state has to be honest like they say they are and tax them now if they want to steal money.
@@NullParadigm The Central Bank of the Argentine Republic is a specific governmental institution which issues the Argentine Peso. Just having currency competition is not the same thing as this institution being closed down or not being able to issue currency.
I think much of Milei's dollarization talk is for purely political reasons to rankle the Kirchnerites and their unreasonable anti-American views and to align himself with the much more economically successful US & West, i.e. the dollar is a symbol of how Milei is going to lead Argentina to be more like like the rich & free US than the poverty laden out of touch Peronist model that they have today.
Situation in Egypt is the same boat with hyperinflation due to atrocious economic management and sheer incompetence. I feel your pain and relate to everything I'm reading, I hope you come out of this sooner than later, and hopefully set a world example with your success in the near future 🤞🏼
Best wishes for all of us ❤
Egyptians having 20 children each probably also contributes. The country is massively overpopulated. 110 million people in a country which is 90% desert, crammed into a tiny area around a river.
@@jgw9990 Birth rate has actually declined to 2.85 as of 2023, and population growth has steadily decreasing as well over the past 10 years. Still, your point stands and more work indeed needs to be done to manage those population numbers in the present and future.
However, the primary reason for the dire situation Egypt finds itself in today is due to a combination of other factors, mainly cronyism, corruption, absolute (military) rule by law, complete disregard of economic principles and expertise, and absence of any real democracy and oversight. White elephants and megaprojects have been a staple of the last 10 years, with a pastoral economy and unchecked military power that has engulfed the private sector. All that have basically bankrupted the country's coffers, and- unsurprisingly- have all but disastrously failed, plunging the country into a terrible economic crisis since 2022.
We're speaking of levels of incompetence and "outrageosness" in Egypt that have not been seen for the last 150 years.
The solution is basically "the world is gonna bail us out" nowadays, with government void promises of "doing the right thing" each time a lifeline appears.
The ex-President Mubarak, the long-time ruler who was ousted in 2011 uprisings, is missed by most people nowadays.
@@jgw9990 Birth rate has actually declined to 2.85 as of 2023, and population growth has steadily decreasing as well over the past 10 years. Still, your point stands and more work indeed needs to be done to manage those population numbers in the present and future.
However, the primary reason for the dire situation Egypt finds itself in today is due to a combination of other factors, mainly cronyism, corruption, absolute (military) rule by law, complete disregard of economic principles and expertise, and absence of any real democracy and oversight. White elephants and megaprojects have been a staple of the last 10 years, with a pastoral economy and unchecked military power that has engulfed the private sector. All that have basically bankrupted the country's coffers, and- unsurprisingly- have all but disastrously failed, plunging the country into a terrible economic crisis since 2022.
We're speaking of levels of incompetence and "outrageosness" in Egypt that have not been seen for the last 150 years.
The solution is basically "the world is gonna bail us out" nowadays, with government void promises of "doing the right thing" each time a lifeline appears.
The ex-President Mubarak, the long-time ruler who was ousted in 2011 uprisings, is missed by most people nowadays.
Don't breed like rabbits, maybe the nile would have sufficient wheat to then sustain a smaller population.
He never said he would cut trade ties with china. He vehemently believes in free trade. He opposes political alliances with the brics nations & wants to align more with the west. He delivered.
He did 😂
He is trying to full throat America
@@sownheard better dirty business with US than kowtow to china
Bro the dude is going full blown Westernist and hoping the western globalists bail him out to show why the no government model works. Which is probably moronic because its clear BRICS and the global south are the future. Might work in the short term, but long term thats a bad bet.
@@sownheardcope
@@nicholasfooong. NSA bot
To note - Argentina's public sector isn't like your public sector - like Venezuela with the PDVSA oil company - it was often used to buy votes or political favours in exchange for a job. Many Gulf countries do the same for their citizens in putting them in extremely comfy, low work demands public sector jobs - but those Gulf countries can get away with it due to essentially their majority migrant workforces. **This does not imply all public sector jobs everywhere are 'comfy'** - In reality, in most nations, they are often underpaid, understaffed and overworked.
That‘s even the case in a lot of western countries nowadays
@@piekay7285 As stated - IT IS NOT.
In Finland we have some specific terms for that, like "shelter job" and very peculiar "jam pole" (Like a stake with a jar of berrysauce on top; one populist came up with it, describing politicians etc. as "only caring that their jam pole stays up.")
Greece is exactly the same. ''democracy'' at work
@@ChineseKiwi It is. Depending on the country your living in this might not be as pronounced. Germany and France do it a lot with government employees that are put into their positions through overwhelming bureaucracy. In German we joke about that being a "Arbeitsbeschaffungsmaßnahme" (the term is used to describe situations where the government puts people into jobs, just so that they have a job.
The initial devaluation wasn't as sharp as you say. The "official" exchange rate was an absolute lie and only a handful of government official's friends could actually use it. Most of people and companies used either the black market ("dolar blue" as it was known here), or several types of exchange rates that you could get via the stock market and/or with heavily taxes over the official exchange rate.
The peak inflation in january-december-february-march was due to the enormous amount of money the previous administration put on circulation in just a few months just to try to win the elections by shear Clientelism and patronage.
but what you say doesn’t align which what they want, so they will just ignore this…
False. They have printing nonstop!
Slava ARGENTINA 🦾
@@pdaz17 They did have nonstop printed but amped it up during the election.
@@VMF-rj8qo agreed but also cause of the price gouging from the captured markets across most industries. Inflation isn’t just money printing.
Recession is thrown around in hushed tones like it’s a dirty word, but when your economy is as far out of whack as Argentinas, it’s exactly what needs to happen to get it back in line. Once this painful event has taken place the playing field will be levelled and they can build from there. Really hard right now for Argentinians but it’s long term thinking and I agree with this message.
I'm not saying you're incorrect but your logic here doesn't follow. Where's the evidence to support this claim
Gotta love the Free Market Solution
@@skettisauce4651 If the issue is inflation then unfortunately to cool the economy you need to hit the breaks. This can be terrible with a welfare system as expenditure goes up.
@@micayahritchie7158 America did it in the early '80s. The Federal Reserve slammed the breaks on the economy and inflation went down.
@@micayahritchie7158 When you misallocate resources by printing more of the currency(stealing the money from everyone, and giving it to government debt holders), there needs to be a correction, when the government spending inevitably stops, and the factors of production are reallocated to where they should be. In the short term, this causes a "bust," where prices in the stolen-from sectors rise due to an artificially lowered profit. In such deflationary periods, individual spending and entrepreneurship are discouraged, as people save more, leading to the recession.
I see nothing in this video to actually support that his reforms are working. In fact, the video admits that his reforms haven't even passed congress.
He said some of them haven't made it through. He apparently has control of some things, to have a budget surplus for the first time in ten years. Maybe it's a good thing that some things are slowed down. I was never a fan of wildly swinging policies.
0:04 "We're now just over 100 days into Javier Milei's premiership". He's not the prime minister of anything, he's the President of Argentina!
I think administration should be used in Presidential... administrations. No one ever says the Biden premiership. Its the Biden administration.
@@daviddestefanis2989 I'm from Argentina, the country this video is about. We say "presidencia" when referring to a President's term in office, which you could translate as "presidency".
@@daviddestefanis2989 here premiership refers to him having the top job, not his administration
Yeah, this video starts wrong and doesnt make any sense
Premier is head of the government.
Best of luck to Argentina!
2:58 He said the Argentinian GOVERNMENT would cut all ties with the Chinese GOVERNMENT. However, Argentinian people would be (and are) free to trade with Chinese people.
Go figure. He did not cut ties with the Chinese government in the end.
And what’s the difference? That’s interfering into economic relations anyway. Same thing happened when the US told Ukraine not to deal with the chinese. And now Ukrainians are crying about china being pro Russia. Why shouldn’t China turn back on Ukraine after that? Same will happen to Argentina in time
So they are going to close their embassy in China and expel Chinese embassy in Buenos Aires? What does cutting all ties with China's government actually mean? No diplomatic relations? He's full of shit. He can't cut all ties with China. It is impossible.
In that case, you (and Milei of course) clearly don't understand how international trade actually works.
@@AdrianPalmira could you explain?
I'm Costa Rican, but I have an Argentinian friend living there. She told me just 2 days before that she is considering not having more medical insurance because how insanely expensive it have turned, that their electricity bill went double, without the regulations Milei erased off, companies are demanding the prices they want for their services, and even their university isn't using their electricity in their buildings...
Yes, Milei said it was going to suck. But this is not "to suck". That term becomes tooooooooooooooooo short for what's going on.
Really hoping "shock therapy" doesn't have the same results as it did for post-Soviet Russia:
"With the exception of Belarus, the Eastern European states adopted shock therapy. Nearly all of these post-Soviet states suffered deep and prolonged recessions after shock therapy, with poverty increasing more than tenfold. The resulting crisis of the 1990s was twice as intense as the Great Depression in the countries of Western Europe and the United States in the 1930's. The hypothesized one time jump in prices intended as part of shock therapy actually led to a lengthy period of extremely high inflation with a drop in output and subsequent low growth rates. Shock therapy devalued the modest wealth accumulated by individuals under socialism and amounted to a regressive redistribution of wealth in favor of elites who held non-monetary assets. Contrary to the expectation of shock therapy proponents, Russia's rapid transition to the market increased corruption, rather than alleviating it.
"The cost to human life was profound, as Russia suffered the worst peace time increase in mortality experienced by any industrialized country. For the years 1987 and 1988, roughly 2% of Russia population lived in poverty (surviving on less than $4 a day), by 1993-1995, it was 50%." - Shock Therapy (Economics)
I am in a few minds about this. I want this to work because if it doesn't it is going to ruin the quality of life of many people. There will be poverity just like that of Russia. However I don't want this to work because I do not wish to see these policies enacted on my country. I believe that these policies cost the people too much in terms of health and livelyhood to be worth it.
@@thetidycookie6713you've provided a perfect summing up really. None of the people praising Milei actually want similar policies to be enacted in their own countries. It's always nice and easy to call for other people to fall into poverty...
What's different about Belarus? Aren't they capitalist? Or was the transition slower and more measured?
@@tempejkl Belarus didn't adopt shock therapy. Much like China, Belarus choose to retain centralised political and economic control as they opened up to foreign capital.
In the long run, shock therapy kind of worked in most of these countries, except for Russia, there it created a corrupt mafia oligarchy. But Poland, the Czech Republic, Hungary, Romania, the Baltic states, they are all doing quite well now economically.
East Germany didn't have a shock therapy, it had a soft landing into the West German welfare state. They never experienced the hardship that public servants or pensioneers experienced in their Eastern neighbouring countries. But this also hindered them to get back on their feet and do something for their own future. They just waited for the job center to send them to some professional training and complained that the unemployment money was not enough to fly to Gran Canaria, only to Mallorca.
Inflation isn’t falling, the rate at which it is increasing is slowing down.
very important!
So it's the derivative of the derivative of the prices?
@@curtrontv yeah that’s the term. It’s disinflationary…but a month over month comparison isn’t enough data at the very least to even conclude that the market is becoming disinflationary. But that is definitely the word I was looking for.
The proper economic term for this is "disinflation", although it is rarely ever used.
No, it's the prices which aren't falling, the rate at which they increase is slowing down. Inflation is falling.
Why didn't you mention that the poverty rate jumped from 49,5% to 57%, might be important too you know
Poverty rates also peaked at a touch over 60% in December before the election. More vitally you really should just mentally put that statistic on the backfoot because it it's not an oobjective measure of anything. 'poverty rates' are easy to massage as something set by the arbitration of the surveyor and doesn't necessarily reflect practical living conditions. Wherever it is you are getting that jump from it isn't the more sober readings at around 11-13%. (obnoxiously spliced apart since yt is fussy about off-site linkages.)
ht t ps : //w ww . u nice f.or g/ arg entina/in forme s/in fo rme-pobre z a
I don't expect you to read it in Spanish, but if you download the PDF and translate it you'll find it states the data comes from INDEC, which is the local institution that uses national poverty lines. Argentina right now has highest HDI in the Americas at 0.880, after Canada and the EEUU. (Fancy Espanola speak for usa) For South American standards, Argentina is in a boom right now and that tracks with other more non-fungible stats like electric frugality vs profit, the food supply and just the much lauded budgetary surplus.
.
Or the fact the budget surplus doesn't exist because the goverment is holding back payments. It's like saying you have a 1000 usd surplus before paying rent. It' doesn't make any sense.
@@clorox1676 Do they intend to ever make these payments?
Reminder that it’s not deflation, it’s disinflation. Very important distinction
Care to let us know what that distinction is?
@@apdanielski Deflation involves prices going down. It is often seen as bad for the economy, with the idea that people will delay purchases waiting for lower prices, making the situation worse.
Disinflation means the inflation is going down, so the prices still rise but not as fast as before. It is the second derivative of the price level, and is usually not called disinflation but just 'less inflation'. In most contexts (especially here) that is a good thing.
You can go further. When Nixon campaigned for a second term, he said the rate of inflation was decreasing (i.e. the rate of disinflation was slowing down), meaning the third derivative was negative. "This was the first time a sitting president used the third derivative to advance his case for reelection."
@@apdanielski Deflation is when your inflation is a negative percentage.
e.g. -13%
(which is not good, because rich people will start hoarding currency...a little inflation forces them to buy assets, aka invest in things that need to be built, made, etc, by people who needs jobs...printing money doesn't create jobs...a rich guy storing his wealth in real estate, that creates jobs because someone has to design, build, maintain, etc, that real estate)
Disinflation, is a decrease in the rate of inflation. E.g. when inflation goes down from 230% to 130%, that's disinflation.
@@tylerdurden3722 yeah, but that bullshit only make sense if you agree with keynes ideas.
Your conclusion is - ihmo - way too symplistic as it ignores all not-measured effects on society.
And even some measured ones, the poverty rates has skyrocketed since he entered office, but of course he’s doing wall street’s bidding so he’s good in their book.
this is a joke right? kinda hard to report on things that aren't measured, which is funny.
Average liberal conclusion. Money number on paper go up ? Ok good. Liberals are unable to see or understand the entire situation especially when it comes to economics.
@@juancarlosalonso5664 If your public finances go bust, poverty is inevitable. Better take drastic measures, get borrowing conditions under control and then gradually build up a more sustainable safety net.
@@2tiddies404 his butthurt is immesurable
A video on indian elections would really help my political science project right now
Modi is going to win. Might get more seats and expand in the south. Opposition is too weak. Thank me later
Oh,what exactly is your topic?
@@navinthehouse4710 Modi is going to win. Will lose seats in Parliament and stay irrelevant in the South just like before. Opposition is weak but not as weak as 2019. Thank me later.
@@navinthehouse4710he won't win
@@utuberme1 Why is modi irrelevant in the south? is it a religion/ethnicity thing? or is there a lack of attention from the federal government on the area?
If you sell everything in your house, you get some quick cash, but does that really achieve much in the long term?
False equivalency, it’s like removing 7 different Netflix subscriptions
@@carteriffic1681 The problem is much more complex than my rhetorical question, obviously. Besides, that's another false equivalency, because having more government employees is also a way of redistributing money, which is good for a consumer economy.
@@Fanaro the last thing this country needs is made up jobs with undeserved salaries financed by the people that do something actually useful.
@@Fanaro If that really works you might as well just give then UBI instead of a fake job.What you fail to realize is that what matters here is increasing PRODUCTIVITY rather than CONSUMPTION. An increase in CONSUMPTION with a shrink in PRODUCTIVITY are destined to cause SHORTAGES and RATIONING(which can come in the form of less quality products[watered milk yay!!], queues, empty shelfs or straight up rationing, in the worst of cases).Finally, please note that collective stupidity is killing people and ruining lives every second so it is a moral obligation to throw your point when you notice that it just doesnt make sense,rather than holding it out of pride.Have a nice day.
The U.K. sold off most it owned for quick cash and a Conservative Party fantasy. Now it has very lithe Britons are poor, capitalism shows itself to be a fraud.
As an Argentinian, I think some thing to Note:
1) Some of people are will to resist to solve the economics problems of the Country. But, at what cost? It´s fair that Argentina produce electrical energity, oil and Gas and now the people have their bills dollarization?
2) Some of the Good news like superavits in the budget are in cost of not paying, have a lot of cuts of programns (not only about the politian CASTA) and a lot of increase of public service. If I don´t pay my bills and the ends of the month I will find me with more money, but it´s doesn´t mean that I solve the problem.
3) The industry is in very bad numbers. A lot of companies are closing or fired his emploees.
4) The social, is very traumating: as everything grow and increce, but no as fast as our salary, we are seeing that a lot of people are now entering in the poberty.
5) I think he has a lot of problems to express what he wants. He is all the time fighting with all the people who is against him or doestn´t thins as him.
6) Yesterday we have one of the biggest and masive march in defense of public education. From the Goberment they said it was all about politian and this is from the people who lost the election. But we are talking about 500/800K of people only in Buenos Aires. This may be a warining signal for him. He must attend to the peoples issues.
That´s my thoughts. I´m not very enthusiastic about his or his government.
Thanks for the space.
(sorry for my bad writing).
All good, I think you wrote a clear message for the people outside of Argentina, to understand your point of view.
Inflation and poverty rates are still increasing, though, it's way too early to get too optimistic.
Inflation is still increasing not as fast as it was before Milei.
Inflation is decreasing
Went from a death, to bleeding out on an alleyway
Good point. This video is very weird. It states how poverty is up and inflation is up, and for some reason says those are both good things. No, those are bad things. Milei's policies are not off to a good start.
@@mariusfacktor3597 well if you're a hardline libertarian increasing poverty isn't a bad thing, unless it's your own poverty, of course.
Did I miss something about the privatisation of state companies, or did it just not come up? Depending on the company that's not a great idea. Privatisation of utilities may save money short term but leads to effective monopolies since there are not competing power grids or water lines in any given region. Whoever has distribution rights can provide poor service and customers have no other option. Additionally, private companies almost always use revenues that should go into maintaining and upgrading infrastructure to instead reward investors and board members. If something breaks in few years they don't care, they got paid already and even if they are forced to resign they usually have generous severance agreements. And usually just get hired at another company, doing the same thing
Before Milei the public sector utilities jobs were being given to people as a form of political patronage instead of because they are qualified. This is how you end up with countries like South Africa, where the public utility sector is so corrupt that nothing ever gets done, the tax paying public are forced to "load shed" (face rolling blackouts), and the employees have no incentive to care. When the state is corrupt, public utilities are a huge mistake.
The same can be true for public companies though, sometimes even worse. Germanys DB and Telekom (T-Mobile in other countries), which are owned completely and in large parts by the state have government supported de-facto monopolies, which hurt everyone
It always does, those that at first don't seem predatory will eventually becomes predatory since the ideology doesn't encourage anything else. They usually hides very well when it starts... but as the drug dealer... the first try is always free. If I recall correctly, some tech bro wanted to 'upgrade' the NHS computer operating system (or something like that) free of charge, but can't answer whether it will remain free of charge for future upgrades. They always show their true color when you become dependent.
@@foregone_roulette you're not wrong. I was commenting more generally. And also from a fiscal responsibility perspective since that was the focus of the video. I forgot to mention it explicitly but once utilities start breaking the government has no choice but to either give the private company money to fix it, fix it themselves, or re-nationlise the company. Long term the government probably spends more on repairs than what the cost of proper maintenance would have been.
@@piekay7285 Not really true, which is the point of a Democracy. It's more complex then that. For one *State run entities* does 'compete', it just doesn't compete the way private sector does. They are ultimately operated by the government on some level and it's the political parties in competing with their records for the public's vote. So when you say DB & Telekom hurts, it's the ruling parties that sets the policies that hurt. Authoritarians regimes is a double edge sword, in that they get a lot of time to figure what works best, if that really is the goal. But it also means it's very hard to change how the company is run since you can't change the government. Private companies, you never have the means to change how it is run without getting involve. A democratically state run entities means you vote for the people running your company, as you say, you get what you voted for.
Just briefly mentioning that the poverty rate hit almost 50% does not paint the reality of what is going on here, prices have become similar to Europe, and the average salary is of around 250 to 300 usd per month. The civil unrest that is brewing is going to blow up soon as people are using credit cards to buy food and spending whatever they saved in hopes of things getting better soon... But the times that Milei is counting on and the starvation of the people in Argentina do not align with one another. All political commentators and analists are seriously discussing how much longer this government will last. The economy being saved comes with this mentality of "everyone on their own" and "0 public infrastructure", it will cause entire towns to dissappear or go into disarray, and similar to those things, there are many others, from the closeness with both internal and foreign military forces, as well as complete disregard for the elderly. The version of the country that you are stating that will be fixed, is a shell of a society that only cares about the wellbeing of the wealthy and hopes the poor die out in silence.
Leftie detected. Los k le venden la Patagonia a los chinos y utds felices. Milei empieza a cuidar la soberanía argentina y lo toman como algo malo. Después intentan acusar de vende patria...viven en una nube de pedo los zurdos dios mio. Quédense tranquilitos que quedan 3 años y 7 meses más. Viva la libertad carajo
I live in Argentina. I have to eat rice, just rice no seasonings or something else, almost every day because I can't afford other food. Its cold but I don't turn on my heater because I can't afford the electric bill it will cause, inflation is so bad that I can barely afford to pay my tiny appartment's rent, I had to cancel my healthcare plan because they raised the price so high that it was either have that or be homeless. I also lost my job two months ago because the place I worked at couldn't afford to stay open to they close shop and fired everyone, and I haven't been able to find another job despite being experienced, having a degree on computer hardware, and speaking two languages, because nobody is hiring right now. Oh, and my sister isn't driving her car anymore because she can't afford gas, she's trying to sell it at half the cost its worth but nobody wants to buy it. That man isn't fixing sh*t.
What do you think in the long run would help ppl like you in Argentina.
We have proverb, it could be translated as: "Dont celebrate happy landing if you didnt made the jump/flight yet". Meaning there is still alot of "road ahead".
Its also easy to be "budget responsible" for short while, the longer this period is, the harder it will be for people to accept. Now they understand but wait a while, "things will get better" and they suddenly wont feel such need to continue in being budget responsible. One wants bigger pension, other wants bigger unemployment support, another wants affordable public housing...
I know what iam talking about, when we were entering EU, we needed to do alot of stuff but it was kinda quick once we knew what we need to do. If this period was longer, people might ask where are the benefits (for them personaly) of "stronger ecconomy" or "less corruption" etc.
When you say "when *we* were entering EU..." who is 'we' dawg, where u from ma boiii
@@toriannasigourney9737 When i say "we" i mean "we not founding members". I was born in country that doesnt exist anymore. Hope its enough, i like pointless mystery and dont find it very relevant. People are usualy quick to tell you from where they are, for some reason i dont care, its only pupose is to project another personal bias into the calculation.
@@DaweSMF I get that my man, I was just curious about which country had to go through this process and ended up better after some sacrifice ♥
@@toriannasigourney9737 No worries, i can tell you tho, most fromer Warsaw Pact/Eastern Block countries. Just Russia and Ukraine didnt do much outside of corruption. Just lately Ukraine started to even think about some changes.
Its not popular opinion nowdays but tehre is reason why Ukraine was one of the poorest European countries and also one of most corrupt. If this was not the case, people would not run out of Ukraine loooong before 2014.
Usualy you need some motivation for change, if you can just emigrate to different country, lot of ppl will do that. People go the way of least resistence.
Dont think people were happy here to make sacrifices, they were not and till this day people are not happy. They are not happy becasue the state doesnt give them exactly what they want tho, not becasue the state is in poor shape. Imo its leftover from socialism, people still have feeling somebody (government) needs to take care of them. They didnt grasped that democraccy is about your own ability to forge your own future.
@@DaweSMF you from lithuania? ive heard that proverb in lithuanian
Corrupt big businesses can make an economy appear to be going better, at least in the short term, if they are getting what they want.
True. GDP figures are heavily biased towards laissez faire economics.
@@tempejkl That's a very convoluted way to just say "laissez faire economics are better".
@@alm9322 gdp =/= quality of life. Plenty of European countries have a lower gdp per capita than the US and yet their citizens are happier, healthier and have more economic security despite the US having freer markets.
GDP only measures the flow of capital insode a country. You can have two companies exchanging trillioms while doing nothing amd will have a stellar GDP.
Countrary to that you can have an excelent socialized healthcare system that generates little to no GDP because it's tax funded and doesn't directly sell anything
@@dargondude2375 It is true that just GDP alone is not a very good metric at measuring quality of life. However there's no way to have a good quality of life without good GDP. It is a necessary condition, but not the only one. Surely the former quasi-socialist, or at least etatist rule delivered neither good economy nor good quality of life. The only examples where good GDP growth does not translate to increasing life quality are natural resources-rich authoritarian dictatorships, that can just earn oil money without doing anything, but that's obviously not Argentinian case.
Argentina's poverty levels hit 57% of population, a 20-year high in January, 2024 source Associated Press
Socialism will do that.
@@Kwisatz-ChaderachMilei is an ancap?
@@Kwisatz-Chaderach As of *january,* meaning *after* Milei took office and dramatically raised inflation. Milei is not a socialist, and neither is the establishment government
It was 55% in November 2023, when the previous government was still in.
milei taking a leaf out of ussr. if you don't have any people alive, you can't have any poverty. economy fixed.
what are you even talking about
Nothing. As usual the far right Neo Nazi favourite subject….Nothing.
Well, you know what they say. Extreme problems require extreme solutions.
True but considering privatisation and austerity has not helped the Uk I’m sceptical if will help there
@@gothicgolem2947 Argentine is a far more extreme case than the UK ever was
@@gothicgolem2947The problem that the UK has is that it wants to carry out austerity but is not willing to make cuts where it should since it is unpopular and does not deregulate. If you decide to reduce taxes, you must accompany it with a reduction of the state and a deregulation of the economy.
In the case of the United Kingdom, your politicians are apes, they decided to leave the EU in exchange for deregulating the economy and moving to a liberal model, which I understand and respect. The problem is that you left the EU but did not change your policies significantly, you did not look for new markets to replace the EU and you are still in a love hate position with the EU.
@@markdowding5737It is literally like if you stopped living with your parents in order to gain freedom and gain new opportunities that your parents prevented you from doing and once you lived alone you decided to maintain a set of similar rules that prevented you from changing since "maybe your parents can get angry.".
then you are in a situation where you are worse than before since you have to pay rent and you have not improved your lifestyle.
Funny how nobody in the developed western nations admits that and they continue to hang on to their bloated welfare state and civil service, but think it's completely fine for less fortunate countries to go through that "process".
Argentina for decades was in decline and becoming poor. I think maybe drastic measures with short term worsening situations is needed for a long term improvements. Maybe.. not sure.
I don´t think "Milei´s" solution is a good idea, indeed, Argentina has declined ever since it adopted hardline neolibral policies in the 70s,
@@Letsthinkaboutit-mb7nnneoliberal means printing insane amounts of money?
@@museli_addict the mass privatisations and cutbacks is something he would agree with neoliberals on for sure, and Argentina has had a basically neoliberal approach since the 70s, with a few tweaks the other direction under the Kirchners.
@@Letsthinkaboutit-mb7nn Argentina is known for having a bloated state with many inefficient public sector jobs, even dubbed noqui by Argentinians themselves. Let alone the price controls, dual exchange rates and high tariffs for imported goods.
The claim that Argentina has been a hard-line privatised economy since the seventies just isn't true.
@@museli_addict it is, that´s quite literally what the junta did, not to mention civilian presidents like Menem. Argentina doesn´t have that many SOEs compared to many other economies, certainly not compared to Singapore, often credited as a capitalist miracle (where 25% of the economy is state owned).
Let me save y'all 9 minutes: No, he hasn't.
Short answer:
It doesn't.
Long answer:
What the heck made anyone think any of the mess he caused would somehow be a good thing lmao.
Braindead
POV: you don't have arguments and just say "it doesn't". Give arguments to defend your tesis.
@@TismentInflation is still high and ordinary people can no longer afford necessities, important institutions such as universities are being closed down to “save money” without consideration of long term damages, selling important part of the economy such as utilities to investment firms will only mean higher prices in the future, most importantly, he hasn’t even begun to address the main issue of their economic problems: mountains of foreign debt denominated in dollars.
Reactionaries gonna react
Remember people, a strong economy often only tells half the story.
Not his fault that the congress resist his policies
Remember, looking at only the last 4 months while ignoring how the decades of prior mismanagement have necissated the current reforms tells much less than half the story.
@@pedroavellarcosta9389 05:03
And it's the only story that content farms like TLDR can be bothered to report. Those guys probably fell headlong for the myth of the booming UK economy in the 1980s and 2000s. Then wake up 20 years later to an increasingly impoverished economy where nothing functions because most people don't earn enough to consume and pay taxes.
@@pritapp788 just like the US economy is doing relatively well atm on paper but the average citizens are struggling
Decreasing inflation month to month basic by causing a massive inflation in the first place and creating a budget surplus by taking away livelyhood of thousands is not a great achievement. This might just be the easiest part of the plan. Milei just riped the bandage out, now he is got to deal with all the rot and infections. Things will only get worst before they get better. Let's see how fast Milei can turn thing around cause god knows he wont have long time with people struggling from all the austerity measures.
The state had too much spending, cutting it was the only alternative, what's your idea? Keeping up the previous system of absolute subsidies for literally everything and having to print another 900 billion pesos to pay for it?
@@santi2683the alternative would be seeing how the money can be spend more effectively and only cutting expenses that don't add anything for society
@@santi2683 the problem here is if he will be able to fix the things before argentinians become too miserable to wait for campaign promises
And as latin american leaders tend to go: he done goofed
@@jacaredosvudu1638 No, the people who voted for him know this time that this is the only path because we already made that mistake. Mauricio Macri's government, from 2015 to 2019, tried to fix the economy through gradual, less painful means. But since everything was so gradual the effects of said reforms were slow to appear and the people ran out of patience, voting him out of office and choosing a new populist government that promised to lift everyone's salary through massive spending again. What followed was the disastrous last government where inflation got so high that no matter how much the government raised the salaries, those salaries would lose their purchasing power after a week or two because they just kept printing more and more money. That's why Milei won under the seemingly unattractive premise of just ripping the bandage off and implementing shock measures that would worsen the economy at first but would ensure stable, healthy growth for the future. We have already made the mistake you speak of in recent years and learned our lesson from it.
The Argentines knew it and accepted the risk.
It’s one thing to privatize some… but privatizing every state company can come back and hit them hard in the long term…
I think it can go well if the country manages to commit fully to liberalism, because then the government will not need to hold that power to stabilize anything, since things will stabilize on their own
@@goddamndoor3647not at all eventually some companies will form monopolistic competitions that will cause a unequal equilibrium and allowing for those companies to raise price
@@mizukage_josh9125 a monopoly can happen anyways, look at the US, almost everything is owned by a handful of companies like pepsico or p&g. The government is almost always useless on that regard, it always ends up being a corrupt snake nest money dump, we must rely on the people being strong and defending their freedom by choosing who to buy from and compete against someone with better service when they lack opposition.
Every single state company is losing money. It does nothing but cost the state and provide sub-par services. The faster the economy is privatized the better
@@jonasastrom7422 not every state company goal is to produce money it’s for the public consumption example is the MTA its goal isn’t to become a monopoly but to provide transit in the New York Metropolitan area and standardized transportation. It’s a public good that needs to be subsidized
Milei basically just said "Look, we're fucked and it's gonna hurt a little before we'll get back on tracks, but good news: England is even more fucked too and if we are quick we can get las malvinas back while they're not looking"
You mean spending less than you earn lowers your debts ?
In general, what the Milei government is looking for is: reduce spending -> have a surplus (have a positive cash balance) -> not have the need to print more money -> reduce inflation -> gain confidence to be able to refinance old debts with cheaper credit -> reduce spending...
Reagan tripled the deficit so not really
@@americaninternationalist1917 tbf he kinda did the opposite by increasing mili spending
@@americaninternationalist1917 who asked for Reagan lore?
@@penzorphallos3199 “economic liberalism” never worked and never will work. All economies are planned economies (including all western countries)
WTF, people are starving to death in Argentina. The food is more expensive than Europe and the salary are the same as Haití...
Oh no, but that doesn't matter because all these instant economic geniuses say "extreme problems, extreme measures" and "at least he was honest about being bad" 😂😂😂
Argentinians stay strong!! The world is watching, we are counting on you to show strength! Many bad people are trying to take over the good people. But Argentina is a shinning light for us all! We are all behind you!!!!
Show us what you are made of!!!!
It amazes me people still believe libertarians. “At least he is honest that it will suck at first”. You know it is never going to be better
Try socialism/peronism for 60 years and you will get to Argentina's situation. Going against the invisible hand isn't such a brilliant idea after all.
No matter what, market liberalism is the best way to develope societies if civil rights still remain in place ofcourse.
@@arielg544 LMAO, he thinks peronism governed 60 years straight. This poor soul doesn't even know how to open Wikipedia
@@arielg544 why don't you count in all the states in which decades of libertarian-esque economy led to the same ruin? Most of Africa, for example, is basically a libertarian paradise without a central government, taxes or social security, and it only leads to neocolonialism and permanent poverty.
@@moaii3311they made the bases for what came up after and any government till now changed that
@@user-tc9sk4ei9ymost of africa is run by socialist/leftists, you can search and see what parties rule each african country
If we all stop paying the electric bill and buying food, we would also be richer, but would also starve and die. That's basicaly whats he's doing.
Argentina could be on fire after Milei presidency and libertarians would still claim it's "making it better" lmfao.
It is easy to talk about the economy, but inflation and poverty have a real impact on people. Any govt should balance the welfare of its most vulnerable communities with any reforms.
yeah, milei is taking from the poorest to give to the richest! he is great!
Inflation is increasing even more than it did before. To be honest, his actions aren‘t working at all and they won‘t
I usually love your videos, and this covered Milei's goals well, but to say his reforms are working is to suggest they're producing results for working people...and they weren't actually mentioned here. Saying the government would balance the budget by making cuts doesn't actually tell me if people are better without those public agencies. Can you kindly cover what's going on with employment, wages, household debt, health, and life expectancy?
You are only looking for excuses to attack Milei, if the Argentines themselves agree with his reforms.
You clearly missed the point
@@asm7406 more than 800.000 people protested yesterday in the capital city and more across the country. His policies are very much disliked by many. It's not an excse, it's just what these kind of policies provoke.
in Poland after fall of communism, first years have been also extremely hard, but now after more than 30 years of uninterrupted growth we see fantastic changes and fantastic economical results.
We had so called Shock Therapy and few years after so called Stretegic Plan for Poland
"Poland lacks about 1.5 million affordable homes, with about 14% of Poles living in substandard conditions, and 40% or 15 million people, living in overcrowded conditions of more than 2 persons per room. With about 70% of Polish families unable to afford a mortgage, Poland builds too few housing units, while the rent market accounts to only 6% of total housing. Poland ranks one of the lowest in the EU for building housing for low-income families"
the economic conditions of Poland and Argentina are RADICALLY different, though. Argentina is a largely lower middle income country with a mostly agricultural economy, whereas Poland had a large industrial base inherited from the communist government, was a member of the EU and was already a rich country, even in the communist era (though lacking consumer goods and civil liberties, the two main factors of the dissolving of the communist government, as well as other hypocrisy inherited from the USSR, such as lack of democratic participation, which was caused by the soviet 'siege mentality' and general fear of dissent).
@@ZimSan facts, but i don’t know what does this info has to my comment
@@ZimSan Every country has it's problems, you can find bad data about Germany too
100% of Poland industries are subsidized by the EU; furthermore Poland - just like the friends of old, which are just in a recession, i.e. the UK - is paid out more than it pays into the EU. Poland has 20+% inflation. Poland is so bankrupt that it used Druzhba pipeline as blackmail - "Oh, we found a leak. We have to close it for repairs" 06.08.2023; "Oh we fixed it" 08.08.2023; Yeah sure. Bullshite. - to get €1.2 Trillion of "War Reparations" from Germany, a topic closed in 1975! Thus indeed you are right "fantastic changes and fantastic economical results", with a lot of fantasy you can put lipstick on a pig and it ain't pearls before the sows.
You have no idea! Jqjqjaj 😂 he printed 12 billions to buy 5 billions dollars, numbers are all fake nothing is real in Milei's economy
The freezing of Omnibus is a real issue. All the fiscal policy will do little without microeconomic policy that revirorates the supply side of the economy.
They need a reason to blame Milei so they can go back to making money and living lavish lifestyles. Even if he was going to help they will attempt to stop him and blame him for failing. A president doesn't fail on his own.
Just a correction: the Omnibus bill is actually "the bus bill", omnibus is bus in formal Spanish.
Bus is short for Omnibus in English, too. I would like the word "charabanc" to make a return.
That's not really a correct translation. Translating it as only "bus" loses the second meaning of the word. In Latin "omnibus" means "for all". The name of the law package is both intended as something that carries lots of reforms (like a bus carrying passangers) while also being considered for the benefit of the people at large (for all).
@@gab_gallard Well, I think the latter is more convincing, since the state government ad for the package did use a bus.
@@ethandouro4334 A literal bus can also be called "omnibus" in English too (as also noted by another commenter above), though it might be a bit dated.
At least in America we had a bill that was called the "Omnibus Bill" so in American English it is not incorrect. In Philippine politics which is designed after the US, they use Omnibus a lot too in their English.
dont know why people love milei so much, he's ruining every social institutions
Good! The old way of doing things needs to be ruined.
@@jhou9835 Ah yes "Let's stop helping the Argentinian people to prioritise helping our American friends make more money"
But red line is going up, my dude
This mean that capitalis- I mean, the people are getting better
Poverty is RAGING in Argentina. Is worse than ever
Looking forward to the next TLDR video about Argentina in 6-12 months': "why Milei's reforms are not working".
they’ll pretend they never made this one 😂
It's clearly working. These policies have worked in every country they have been tried.
@@RaRd8zit’s been 100 days, let’s give it some time to say “it’s working”
also, where else have they been tried to any success?
@@cdw2468 Estonia, Ireland, Singapore, Taiwan, Switzerland
@@RaRd8z and what is your measure of “working”?
Honestly if the peronist establishment party won the presidency people wouldnt be talking about Argentina.
65% of Argentina's population is in need of food, Miley's caste was the people of Argentina
Privatización means all the $$ for corporations. And less public services. And higher costs for those services. Only about profit.
Let me give you an example.
State railways in Spain (RENFE); Best service in the EU, they operate commuter, regional and high speed lines, good trains, 15K employees.
Meanwhile, Argentine railways (Trenes Argentinos) Ok service, handles commuter rail and only 6 long distance lines, which only 2 are "fast" (120kph), rest of the lines are limited to 60-40kph; Anyway, 31k employees and they refuse to modernize or upgrade their systems since that would result in ppl getting fired.
Thats what we call parasites and why milei won tbh.
Meanwhile government services are full of people who have no incentive to innovate or work hard, and are filled with people related to politicians. It's literally picking what poison you want more.
Companies also have a reason to improve and drop prices. The state does not.
@@allenellsworth5799 True. The government also has a freight railroad, which has to compete against other private railroads on a decently sized part of the lines, guess what? Their services are actually decent and they make money. Its a shame tho, big daddy state takes away all of their revenue and uses it to finance Trenes Argentinos passenger services.
He has less than four months in office of course he will retain the support of the people that voted him in and are hopeful and desperate for change. However, this is just repeating the most positive version without any real analysis or context. The born yesterday will forget tomorrow style of news that just adds informational noise for content.
Macri made similar promises back in 2016. The problems are global not national.
I’m 1000% sure this video isn’t going to age well
You and Jimmy Carter.
Indeed. This video will age horribly. Far-Right fiscal policy gives economic growth in semi-developed nations without actually improving the life of the average citizen, and it usually falls right back down.
@@kingendercatYeah those poor Singaporeans, shouldn't have practiced those pesky "far right" economics
Singapore is a Dictatorship where citizens are forced to follow everything the State tells them or else they have their life quality threatened.@@jonasastrom7422
@@jonasastrom7422 lmao my man thinks singapur is an example of anything. That's like comparing the Vatican to Italy and saying, oh yeah that's what happens when you don't base your entire country identity around God.
The previous party was not stupid - the reason they ran things the way they did and the IMF never complained was to help exporters at the expense of everyone else domestically.
IMF / World bank same capitalist lenders.. corporate elite of the EEUU. Why no country should take loans from them.
Of course they are. He's doing what everyone has always known is the right way to govern. The only reason it doesn't happen everywhere is because citizens don't have real say in how governments operate in most of the world.
Even if the situation returns to normal, as is likely, the real challenge is to ensure that Argentina does not sink into its cycle of crisis again in the next 5 years
Si baja la inflación y la economía vuelve a crecer nadie va a votar de nuevo al peronismo.
@@arielgoldfarb4118 El hecho es que políticas económicas muy liberales corren el riesgo de mejorar la situación sólo a corto plazo y luego iniciar una nueva crisis económica, como ya ocurrió en 1999-2002.
3:00 He has always say that Argentina as "state" would no longer make business with China, but that Argentines were free to make business with wherever they want.
He said this IN ALL INTERVIEWS on spanish and english from always. He never change his mind and he is doing exactly that.
That's not what he is doing. Now the new peso bills for example are printed in China.
@@atena-sophiegiltjes-grache7693that was order by the previous goberment, get your fcats right
Quite a daring take from TLDR on this topic: focussing only economic themes and issues while neglecting the social side of the story is quite dangerous, considering Milei's position on the Argentinian dictatorship - him being a negationnist - and his close ties with descendants from the regime...
He was ELECTED democratically. He was the most voted candidate in argentinas history and somehow you displaying him as a "dictator". Wow, you really don't care about objectiveness and empirism. The social side is that people will live under sucking conditions but they will at the end come out better than before. Since over 120 years Argentina was always declining. People knew it would suck, he said it would suck and they voted him for that. Now get up and work. A laburar zurdo
Imagine TLDR have to say something positive about a government reducing its size as well as costs and succeeding recover its economy.
I'm generally not a fan of economic "shock therapy", I think it tends to create instability and cause long term harm, a gradual transition is always better. But in the case of Argentina, attempts at gradual transition have all failed, so perhaps this is the only option left.
Attempts at gradual transition have failed cause they never even tried incrementalism, they blocked the social democrats from doing any meagre tax reform and allowed the Trumpian president (Mauritio Macri) to run loose with corruption and irresponsible government spending.
What "shock therapy" does in a third world country, as it was proposed by the IMF, is this:
- Privatize state assets
- Implement austerity policies that will cut social safety nets and increase poverty
- Open the market to more foreign investors
Guess what? Those foreign investors (aka first world corporation or subsidiaries) will swoop in and buy state assets at a cheap price and because there are no more social safety nets and people are desperate for money, the foreign corporations also have an army of obedient little minimum wage workers... how convenient innit?
Shock therapy? More like Banana Republic Therapy.
So gradually wait until 100% of the populace is poor? From the 60% that are today.
I'd wish.
For me the greatest fear is that for decades some sectors have grown used to their perks, and they will not give them despite the ever-increasing number of poor people. It's amazing there hasn't been political violence so far, like the type I witnessed in my childhood.
Hi I am an Argentinian living in London and recently also a Brit. It is great to see TLDR covering my beautifl fascinating and absolutely insane 😊country.
Argentina: We don't have unemployment in our country if unemployed cannot registry as such.
just ignore the famine and unemployment skyrocketing as well as the recession and the data says everything is fine lol
famine?? 😂
@@jonasastrom7422 Yes, famine. It existed before and its only getting larger.
@@moaii3311the Argentinians are to blame for voting peronism
@@jonasastrom7422 didn't think I would see you here too. Please delete your channel, you are misinforming people.
This country could feed 400+ million people, we aren’t going through a famine
Privatization of Public Companies especially utilities like electricity and water is always terrible idea. Just learn from Philippines, Bolivia, Puerto Rico, UK and many more countries. Just look what happened after privatization, it always lead to higher prices and even worst services. Utilities Privatization is only good when combined with price control, and higher corporate taxes and UBI.
Add italy to the list
Electricity as public asset was terrible in Brazil, same as telecommunication. The service is 3x more reliable now.
it all depends on how the privatization is done, if the public company is just converted into a private company, you have the same issue - a monopoly. you need to split the company into many parts to enable competition as well as incentivizing new businesses to enter the market with competitors at a similar size
Privatization without free competition in the area doesn't amount to much better.
It goes from a state monopoly that drains public funds, runs on deficit and delivers a poor service but, usually, at artificially low prices to a private monopoly that delivers ok services at higher, real, volatile market prices.
Simply opening that market and letting other providers compete is better than both. If the state business is solid and attends to consumers demands it will survive, if it isn't it won't. If it doesn't you then either reform it or sell it.
@@VMF-rj8qo uttillities are natural monopolies. All you can really have is a bidding before the service is provided.
No, he is solving the problem by not paying the provinces (which is a violation of the federation agreements). This is not a long-term sustainable solution because provinces will start to disobey the federal government since they have to let the federal government collect taxes but don't receive funding in return. He's just exchanging inflation for recession. The difficult thing is to avoid a recession or at least have a moderate one and solve the problem of inflation. Moreover, this economic analysis is missing the most important point in economics: the objective of the economy is to secure the best distribution of scarce resources for the well-being of society. It is pointless to improve macroeconomic figures if it doesn't improve people's lives. This doesn't mean that fiscal responsibility, macroeconomic growth, low inflation, etc., are not important, but rather that they are a means to an end. These factors are highlighted at the expense of indicators like the Gini index (an index of inequality/equality), the Human Development Index, mortality rate, life expectancy, and a myriad of other data points that reflect society's real situation.
The objective of an economy is to secure the best distribution of scarce resources for the well being of society? Don't tell Milei, he'll scream at you and call you a commie.
and of course they ignored this information
This is such a left wing opinion on economics I found myself booking a helicopter ride for reading it.
The economy is an organic emergent property, not something to be tinkered with for one mans belief on whatever he thinks 'the good of society is'.
People like you friend, are why Argentina needs Milei. Just leave people alone to live in peace and stop thinking you know what's best for everyone else.
@@jamiemobilerepairnow5968I found myself loading the mosin and showing you a brick wall in response to this right wing nonsense
@@jamiemobilerepairnow5968 Sounds way smarter than your typical right wing stuff... such as Trump's response to the pandemic :
- Make a mess, causing unnecessary deaths and an economic disaster
- Don't take responsibilities and blame others for your own failures
- When your successor eventually improves the situation with his 'leftist' approach... try to steal his achievements with tons of lies
- Profit
Reminder : At every step of the process, do not forget to count on the lack of education / stupidity of your supporters
It is worrying that Argentina will go from being anti-business to extreme capitalism (an economy that only works for large corporations). We need balance, not more extremes.
- Plan to improve education = Nothing (Milei reduced education budget 200%)
- Plan to improve health = Nothing (Milei reduced health budget by 200%)
- Plan to help SMEs = Nothing
- Tax reform to simplify and alleviate = Nothing (they only raised taxes) Argentine SMEs pay 50% taxes, while mining corporations take gold, lithium and rare earths and do not pay more than 1% (in Chile they pay 30% of taxes)
- Serious labor reform = Nothing. A decree that reforms 1000 areas of the state. Areas that cannot be changed by decree, without any consensus, or strategic vision that allows lasting and sustainable change over time.
- Remove environmental regulations (Glacier Law, Forest Law and Fire Law) + Remove the land law (Now you can buy land without any limit knowing that the large international investment funds have more money than almost all countries) + Ideas like “ Taxes are theft” + Ideas like “if a company wants to pollute, there is no problem” = Everything is set up so that large capitals exploit Argentina's wealth while they pollute and do not ask for a single dollar in return, to finance health, education or infrastructure.
- The cost of living has multiplied by three and purchasing power has fallen
- To hide the current economic disaster, the president insults and fights with all dissident voices along with an army of trolls to divert attention.
- The only real thing about everything Milei says is that politicians are a caste. But the current president is now the caste that works for the most powerful caste of all, concentrated financial capital.
Milei is a whacky person. He believes that his dead dog guides him. He doesn't have a clue of what he is doing. and lies all the time. He only does what her whacky advice him after spiritist rituals she performs. He also takes advice from his Rabi. No one else. It is a mad government against science and reason.
Couldn't have said it better myself.
4:54
A little context on this, as you should know Argentina has long suffered from high deficits, to finance them the state took on debt in USD (private and of international organizations) otherwise issued leliqs (a treasury bill) to borrow pesos and "hide the issuance", it is for that low interest rates "paradoxically" lower inflation in Argentina is because currency continued to be issued for the debt in pesos, which in turn increased the amount of debt to cover the deficit because the interest, which in turn increased the issuance of pesos and so on ad infinitum until which obviously changed the policy of the BCRA...
"Only a twelve percent spike I'm relative poverty! The economy is healing C:"
What an insane interpretation of facts. How could the anihilation of the social safety net, the eradication of people's savings, mass unemployment and a relative poverty rate of 50 PERCENT be viewed as a trend in the right direction?
"The trade deficit is improving c:"
I feel like I'm having a stroke.
First: the 50% poverty was caused by the previous governments, not by this one.
Second: sadly, the safety nets were marred by corruption AND so elephantiasic that they were driving the State into bankruptcy, also thanks to the past administrations. So sadly, if the country's economy is to heal to allow people to grow and prosper by themselves, those things must be reviewed and downsized. Unless you think that the previous path was correct, there was really no other option.
Basically the Argentine economy went from first world to at least second world. However, the people of Argentina still expected a first world quality of life. So they borred and printed money to keep that up, including this 'social safety net' you speak of. Do you think Argentina is a first world country? It is objectively not.
Milei is correcting decades of political mismanagement by the socialists.
Argentina, Venezuela, Cuba- all prosperous countries with excellent natural resources. Havana was at one time 6x more wealthy than Las Vegas. Cuba could have been wealthier than the Bahamas. Today, all of these countries are poor, despite their natural resources. What happened? Socialism.
@@daviddestefanis2989Thats a very oversimplistic view of things... if you really think that Venezuela went to drain because its spent to much on healthcare or public education you really dont know nothing about my country. We can agree that dictatorships are, for the most part, very innefficient at managing economies.
@@themsuicjunkies 1. You'll note the words public education and healthcare don't show up in my post.
2. I would guess you have a very different understanding of socialism if you think that's what socialism is about.
Did Venezuela nationalize industries? Experience corruption, mismanagement, and hyperinflation?
Looks like socialism struck again...
Your country literally has more oil than Saudi Arabia.
@@daviddestefanis2989 Hmmmmm, I wonder what the U.S and Cuba's trade relations are like. Probably amazing. And Cuba has an abhorrent homelessness rate! 0%! I know there should be more, but you see, that is called Socialism. It's very dirty and causes this awful thing called "equality".
No, this is all a sharade that is doom to fail. I am Argentinian and I can tell you this past 4 months have been absolutely terrible in all senses. The government stop funding schools, universities and many useful things in the name of “There is no money”. Prices of things have skyrocketed and cost the same as in UK or Europe.
The difference is that our country earns 300 times less than those countries so it is like prices of USA with a salary of Cuba.
Also taxes are being useless right now because instead of funding things it all goes to the Central Bank treasury so unless the government produces something it can lift up the economic adjustment “el ajuste”. But that seems very unlikely if their policies are not funding anything.
I am not saying the other government was good on the contrary it was bad but this one also has many flaws
You're the only Argentinian i've seen in this comment section. I wonder what all these american losers would think upon seeing this?
Also, at least in Cuba you can become a taxi driver, lol... support to argentinians from ireland 🇮🇪❤️🇦🇷
@@tempejkl ew a commie.
@@tempejklthey don’t care, it confirms their bias and tells them what they want to hear: it’s ok and even desirable for all to let the poor suffer
His honesty that things are going to be awful at first is a big part of it. Fixing over a hundred years of mismanagement is going to be a monumental achievement.
Exactly. Of course left wing people love to point how awful things are at current but as you said it it’s to repair a century of corruption and socialism. Spending more and running more deficits were only gunna make things worse longer term. These reforms are needed any person with any economic knowledge would agree
Because smaller government and less government spending = more freedom, more charity, less political jailing, and so on.
It's really baffling that the video doesn't mention the fact that Argentinians became substantially poorer than ever under these 'successful' reforms. If you're willing to starve your population and let the sick die for lack of funding for the health system, it's really easy to reach a budget surplus. It's also really interesting how this very channel calls out Erdogan for his 'unorthodox' economy handling by raising interest rates to decrease inflation while praising Milei for doing the same.
What a success! Spiking inflation, starvation, impoverishment, BUT look at all these beautiful Excel sheets showing blue numbers! 🥰
This video is an outlier from TLDR's standards. I don't remember having seen this level of bias before.
It's not an outlier: it's a very good indicator of the dramatic fall of standards on this channel. Shame, it was good while it lasted.
TLDR seems to have become a puppet of the capitalists... are they? No. Then why do they seem like that? Because they copy the actual puppets of the capitalists.
the neoliberal idea of “number go up = good” truly has rotted people’s brains
The ones who destroyed Argentine society and brought it this point were the previous governments, not this one. Milei only ripped the bandage off and is trying to take sustainable measures to ensure long term growth. Or do you believe that all the poverty and economic chaos just exploded out of nowhere now?
@@zddxddyddw - sure, one can argue that the increase in poverty has nothing to do with the current government.
You can't deny, though, that the issue should have been addressed. To state that the country is doing great while ignoring how poorer it became isn't journalism, that's PR for the Milei administration. I expect more from this channel.
Sure, Milei has fixed Argentina for its elite just as expected...
What elite? Reforming the laws so now parties are funded by themselves and not taxes? Reforming the government firing thousands of useless employees? Making the live-pension of expresidents gone? Oh yeah, he has fixed Argentina for its elite for sure.
Chupala
That picture shows that Milei does not know how to hold a chainsaw. 😂😂 You do not hold a chainsaw by the guard, you hold it by the handle.
He's clueless, in Economics and practically in any aspect of real life.
I hope for the sake of the people of Argentina that he is able to improve living standards
It is worrying that Argentina will go from being anti-business to extreme capitalism (an economy that only works for large corporations). We need balance, not more extremes.
- Plan to improve education = Nothing (Milei reduced education budget 200%)
- Plan to improve health = Nothing (Milei reduced health budget by 200%)
- Plan to help SMEs = Nothing
- Tax reform to simplify and alleviate = Nothing (they only raised taxes) Argentine SMEs pay 50% taxes, while mining corporations take gold, lithium and rare earths and do not pay more than 1% (in Chile they pay 30% of taxes)
- Serious labor reform = Nothing. A decree that reforms 1000 areas of the state. Areas that cannot be changed by decree, without any consensus, or strategic vision that allows lasting and sustainable change over time.
- Remove environmental regulations (Glacier Law, Forest Law and Fire Law) + Remove the land law (Now you can buy land without any limit knowing that the large international investment funds have more money than almost all countries) + Ideas like “ Taxes are theft” + Ideas like “if a company wants to pollute, there is no problem” = Everything is set up so that large capitals exploit Argentina's wealth while they pollute and do not ask for a single dollar in return, to finance health, education or infrastructure.
- The cost of living has multiplied by three and purchasing power has fallen
- To hide the current economic disaster, the president insults and fights with all dissident voices along with an army of trolls to divert attention.
- The only real thing about everything Milei says is that politicians are a caste. But the current president is now the caste that works for the most powerful caste of all, concentrated financial capital.
Milei is a whacky person. He believes that his dead dog guides him. He doesn't have a clue of what he is doing. and lies all the time. He only does what her whacky advice him after spiritist rituals she performs. He also takes advice from his Rabi. No one else. It is a mad government against science and reason.
@@suenoshumedospro5240 you are delusional.
Its going to happen 😊 i know
12% surge in the poverty rate seems like a great succcess indeed. good job Javier
it's a really complex thing to evaluate in just 4-5 months. normalizing the books from the government pov is one thing, affecting their citizens in the process is the complete opposite, these changes are not seen in just 2-4 years. It will take 10-20 years to see any data that shows that any changes implemented today were successful or not.
Quality of this presentation was master class
good on him i guess, but that privatisation of public utilities made me physically whince.
Yep, this would be an utter disaster; see the UK for further details.
Saying it’s going to suck and then it sucking is not a good thing … easy yes, good no …. Now the hard part …. Getting it to work …. Good luck with that …
Just like when you fix many things...sometimes things have to get worse first.
@@allenellsworth5799 ok well let’s see how well he does … something tells me having 60%+ of the population in poverty and depending on anarcho capitalism to save the day while outlawing protest isn’t going to end well, but I’m game …
@@Darkstarr-ud2go He didn't outlaw protesting. You can't even get the small facts right.
We can't sit here and pretend poverty was doing anything but going up already. Sometimes to improve things they have to get worse first. This goes for many problems in life.
@@allenellsworth5799 oh don’t try to be smug … he tried to outlaw protests, maybe still is … and I agree country has been in bad straights on and off for decades … and maybe just maybe his attempts to right the ship might help, but somehow I don’t think anarcho capitalism is a functioning process … I’ll text you when the population gets tired of the experiment….
Milei's reforms are great!!1!! As a fellow brazilian I can bearly buy the most prestigious football club in Argentina with my monthly salary!
Good luck and wishes to the people of Argentina
I don't think you can claim that anything is working while National Universities are slowly beginning to close, poverty rates continue to climb, and industrial output is at an all time low. It's easy to save money when you stop paying your bills. Doesn't mean its a good way.
They are downsizing, ever realized your bill is too high and had to cut things off of it?
Like a netfix account or a Amazon Subscription maybe even foods you like.
Why is the government paying universities anyway, not to mention why does the government have any relationship with industry's output?
Output doesn't matter unless your making money on said output.
If he can't stop the deficit , he can't stop inflation , if he can't stop inflation the people can't save and they get poorer and can even starve.
A doctor will tell you recovery will suck and the treatment will suck. But there is hope for the future.
A candy man will promise good times but make you ill and need a doctor.
The Argentinian right is cool with it because Milei´s policy has hurt those he has antagonized during his career. He will say the National Universities are Marxist factories or some dumb crap like that.
The government wasn't paying the bills, it started to pay the bills now
"Ministry of Gender and Diversity..
AFUERA!"
It was actually the Ministry of Women, Genders and Diversity - It's like a bunch of Harvard sociologists set up a ministry 😆
Ability to afford living without selling half your organs?
AFUERA!!
Based
@@phelan05manley21 found the big government advocate
@@guimts8881I am a communist, i am the complete opposite, we want the government smaller (over time). Poverty has went from 44 to 57% under Milei. Milei has lowered taxes for the rich while giving less to the poor.
On behalf of everyone with an interest in macroeconomics, I’d just like to thank Argentina yet again for providing another extreme example to observe and study. The world is truly indebted 😂
i dont think he's a god politician, but he sets the right goals
Can't wait to see this video age like a bad milk in a few years' time.
A bad milk? Lmao
@@fosyay1780whats the joke?
I remember leftists wanting a recession to happen after Trump got elected.
But the economy was doing much better until a "mysterious" disease of "unknown" origin was "accidentally" unleashed in 2019.
And now those same leftists are trying to convince us Bidenomics is working.
I remember lеftists wanting a recession to happen after Тrump got elected.
But the economy was doing much better until a "mysterious" dіsease of "unknown" origin was "accidentally" unleashed in 2019.
And now those same lеftists are trying to convince us Bidеnomics is working...
@@danielstewart8339That’s the thing, it sucks.