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Argentina’s Belt Tightening

Argentina’s President Javier Milei is doing what he said he would do: reducing the size of the government. The Financial Times calls this taking “a chainsaw to Argentina’s state companies.”

Argentina’s decades of socialism grew the government exponentially and shrunk the economy for its people to devastating levels of poverty. Milei was elected for pointing that out. He has cut budgets to government entities with a mandate to slash staff and revamp business plans.

As quoted in FT:

“All of these companies . . . spend 20 per cent of their budgets on delivering their specific goals, and 80 per cent on management costs,” Guillermo Francos, Milei’s interior minister, told Argentine television network LN+ last month. “We must strive for efficiency.”

Melei calls himself an “anarcho-capitalist” and has pledged to send as much business back to the private sector as possible because, clearly, the government has done a crap job of running Argentina. What do you think, will it work?

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