Argentina's chainsaw economics: is Javier Milei's campaign to smash the state working?

阿根廷的电锯经济学:哈维尔·米莱摧毁国家的竞选活动是否奏效?

Money Talks from The Economist

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2024-12-13

51 分钟
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Argentina has become famous for its repeated defaults and rampant inflation. Successive governments have promised to get the country out of its economic mess, but have failed. Argentina's current president Javier Milei is a self-described anarcho-capitalist, who came to power with a mandate to slash public spending and end the country's triple-digit inflation. After a year in the job, what impact have his drastic measures had? Hosts: Mike Bird, Ethan Wu, and Alice Fulwood. Guests: The Economist's Kinley Salmon; Santiago Bulat, director of the Argentinian economic consultancy Invecq; and Brad Setser of the Council on Foreign Relations. Transcripts of our podcasts are available via economist.com/podcasts. Listen to what matters most, from global politics and business to science and technology—subscribe to Economist Podcasts+.
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  • The Economist.

  • The year is 1896. Henry Ford has just completed his first experimental automobile,

  • and Nicholas II has been crowned as the Tsar of Russia.

  • Far away at the southern end of South America,

  • the agricultural powerhouse of Argentina ranks as the sixth richest nation on Earth.

  • Its GDP per capita is almost as high as the world's leading nations, Britain and America.

  • It was considerably higher than that of Spain, the country's former colonial master,

  • or Italy, the nation from which many immigrants to Argentina had arrived.

  • But the 20th century was not so kind to Argentina.

  • First,

  • its export markets were damaged during the First World War as global commerce slumped.

  • Not long afterwards,

  • the Great Depression crushed the open trading system that Argentina depended on.

  • Politics was in flux too.

  • Argentina saw a succession of military coups, six in total between 1930 and 1976.

  • During this tumultuous period, Argentina's most influential political figure,

  • Juan Domingo Perón, served three terms as president.

  • Guided by his unique brand of economic nationalism,

  • Perón engaged in a massive program of spending in the post-war period.

  • He nationalized industries and public services,