Who’s Afraid of an Anarcho-Capitalist? In Argentina, economist Javier Milei wins the presidency decisively over Peronism.
by Merrill Matthews
Economist Javier Milei, a self-described libertarian and anarcho-capitalist, easily won Argentina’s recent presidential election. The media, who regularly referred to Milei as a far-right-wing eccentric, are mystified. Why, the media pundits wonder, would Argentines choose a libertarian economist over a known socialist, Peronist Economic Minister Sergio Massa, who has been overseeing Argentina’s failed economy with 140 percent inflation?
Part of the media’s stunned response has to do with Milei’s economic proposals.
He has promised to abandon the Argentine peso and dollarize the economy, shutter the country’s central bank, slash government spending and tackle the country’s huge debt load. So, of course the left is upset, even though all those proposals are positive economic steps.
Start with dollarization. As Investopedia explains, “Dollarization usually occurs in developing countries with a weak central monetary authority or an unstable economic environment. … The main reason for dollarization is to receive the benefits of greater stability in the value of currency over a country’s domestic currency.” That’s exactly what Argentina needs.
As for dumping the central bank, dollarization essentially outsources Argentine’s monetary policy to the U. S. Federal Reserve Bank. So, there’s not much need for a central bank, which has completely failed to do its job anyway.
But what really has the left upset is Milei’s plan to slash government spending—and using a chain saw to make his point. Government pork is the primary way leftists buy votes to stay in power. Spending cuts could be a real threat to that power and corruption.
Unsurprisingly, the media and the left are doing their best to create a negative public impression of Milei. A New York Times report is typical of most media portrayals. It refers to him as “a far-right libertarian” and says, “For months the national debate has revolved around his ascent, his eccentric personality and his radical economic proposals.”
In addition, the media are obsessing over his five cloned English mastiffs, four of which are named for now-deceased, prominent free market economists. There’s Milton (for Milton Friedman), Murray (for Murray Rothbard), Robert and Lucas (for Robert Lucas, Jr.). Two of those economists won the Nobel Prize in economics, and all three could be considered libertarians. And all of them would have supported Milei’s economic agenda.
But the left can’t stand Milei’s admiration for these economists. By contrast, had he named four of his mastiffs Maynard, Keynes, Karl, and Marx, the media would have loved him.
Originally published by the Institute for Policy Innovation. Republished with permission.
For more great content from Budget & Tax News.
