Government candidate Sergio Massa admitted defeat in the presidential elections in Argentina. “Javier Milei is the president,” said the current Economy Minister on Sunday night (local time) about his ultraliberal rival. “I congratulated him because the majority of Argentines voted for him.” After counting 86% of the votes, Milei was left with 55.95%, well ahead of Massa with 44.04%.
The self-proclaimed “anarcho-capitalist” Milei promises a radical turnaround: he wants to introduce the US dollar as legal tender, abolish the central bank and numerous ministries and cut social spending. The government candidate, Massa, defended the previous policy with massive state intervention in the economy and extensive social programs.
The second largest economy in South America is in a deep economic crisis. The inflation rate is over 140% and around 40% of people in the once-rich country live below the poverty line. Argentina suffers from a bloated state apparatus, low industrial productivity and a large parallel economy that deprives the State of much tax revenue. The national currency, the peso, continues to lose value against the US dollar and the mountain of debt is constantly growing.
Read more…