Argentina is facing an economic and political crisis as President Javier Milei implements extreme austerity measures, including massive job cuts. Despite his lack of political experience, Milei retains high public approval ratings and a calm public reaction, even as the economy continues to contract. The government’s plan is causing severe economic downturn, with a 1.4 percent decrease in economic activity, a 30 percent drop in construction, and a rise in poverty to 55.5 percent of the population.
The current economic situation in Argentina has been deteriorating since 2011, with Milei inheriting a catastrophic situation of high inflation and recession. While the president’s economic plan was announced during the campaign, the population is feeling the effects of rising poverty and reduced safety nets. The International Monetary Fund has cautioned against overly harsh austerity measures, urging the government to focus on supporting vulnerable sectors to prevent disproportionate impacts on low-income families.
Despite concerns about the Milei administration’s amateur political organization and governability, the president’s popular support remains high. Utilizing social media and a digital army of supporters, Milei has managed to maintain his political capital and popularity. His advisor, Santiago Caputo, plays a crucial role in shaping the administration’s narrative and diverting attention from economic issues by engaging in culture wars on social media.
As the economic crisis deepens, questions remain about how long Argentine society will tolerate the recession and austerity measures. Will there be widespread protests against the government’s policies, or will Milei continue to successfully navigate the political landscape? The future remains uncertain, but for now, the president continues to ride the wave of public support while implementing controversial economic policies.
