27/11/2023
In the chessboard of Argentine politics, a game played with fervor and intensity at the heart of the southern hemisphere, the pieces had long remained static. The board was monopolized by a kaleidoscope of left-leaning and progressive coalitions—stalwarts from bygone administrations who clung to the baton of power within the roseate walls of the Pink House, the presidential palace gazing out onto the Plaza de Mayo. Yet, in 2023, this political tableau was upended by a maverick from Generation X, a man whose tousled mane and bushy Elvis Presley-esque sideburns belied his disruptive influence. Javier Milei, the outsider, the interloper, burst onto the scene with a flourish, a whirlwind of eccentricities and audacious stratagems that left the status quo not just beaten, but bewildered. His antics were as flamboyant as they were varied—from donning superhero garb to wage war against the perennial specter of inflation that stalks the Argentine psyche, denying the excesses of the Military Juntas that ruled his country, to staging comedic skits on television and radio. He wielded blackboards like weapons, delineating his plans to slash spending through an economic shock therapy that seemed as radical as it was resolute. Yet, beneath the spectacle, beneath the theatrics, lay a political ideology that Milei claims is as potent as it was divisive. Milei championed libertarianism, a creed that drew clear battle lines in the sand.
On one side stood his opponents, whom he painted as a corrupt "caste" of parasites, fattening themselves on the state's coffers while formulating policies detrimental to the majority. On the other side stood Milei himself, chainsaw in hand—a nod to South American populism and demagoguery—vowing to "destroy them". This narrative, steeped in Rothbardian libertarianism and Friedman-esque trickle-down economics, echoed the Reagan-era mantra of "Making America Great Again". It was a narrative that resonated with an electorate yearning for change, for a break from the status quo. It was this narrative—coupled with Milei's deft navigation of pop culture references and sensitive social topics—that catapulted him to victory. Now, as Argentina's president-elect, Javier Milei stands at the precipice of power, his radical reformist agenda poised to reshape the Argentine political landscape. Yet, before he embarks on this journey, it is incumbent upon us to scrutinize the man and his message. To place Javier Milei under the microscope and dissect the ideological underpinnings that propelled his meteoric rise: That of an unstable man leading an unstable country.
Who is Javier Milei
Javier Gerardo Milei first drew breath in the bustling city of Buenos Aires on the 22nd day of October, in the year 1970. The offspring of a humble bus driver and a housewife with roots steeped in Italian heritage, Milei's early years unfurled within the charming confines of Villa Devoto—the well-heeled district, its streets lined by a stately procession of trees, was a testament to the grandeur of 1904, erected as a haven for the Italian immigrant elite who boasted deep pockets.
His childhood was framed by the austere teachings of Roman Catholicism—a heritage that continues to reverberate in his discourse and educational choices. Private Roman Catholic schools served as the backdrop to his academic pursuits, where he earned the moniker "The Madman, El Loco", a testament to his fiery temper, unapologetic assertiveness, and brash demeanor. These very traits, born from the crucible of a turbulent upbringing marked by verbal and physical abuse, would later serve as the wind beneath his wings, propelling him into the hallowed halls of the Pink House.
The quintessential Argentine, Milei embraced the national love for football, even pursuing the life of a goalkeeper in the lower leagues until the year 1989. His career trajectory took a sharp turn towards economics, a field that presented itself as both a refuge and a challenge amidst the tumultuous landscape of hyperinflation under the presidency of Raúl Alfonsín. It was during this period that Milei found himself drawn to the principles of Reaganomics and the economic experiments of the Chicago Boys and Milton Friedman in Chile.
Yet, Milei was no mere student of economics, his intellectual appetite whetted by the theories of trickle-down economics that held sway over Washington DC during the Reagan era. He was also an artist at heart, finding solace and expression in the realm of music. He lent his voice to a cover band for the Rolling Stones, as though seeking to imbue his economic theories with the raw, emotional power of rock and roll.
In the grand tapestry of life, Javier Gerardo Milei is a character of flamboyant hues and audacious contours. A scholar steeped in the doctrines of economics, he has trodden the hallowed halls of the Institute of Economic and Social Development and the Torcuato Di Tella University. Immersed in the intellectual banquet laid out by luminaries such as Hayek, Friedman, and Rothbard, he emerged with a worldview that would shape his subsequent career trajectory.
In this high-stakes game of power and prestige, Milei's intellectual prowess caught the discerning eye of General Antonio Domingo Bussi. To liberals, Bussi's name bore the scars of human rights violations, a legacy of his actions during the Military Junta. Yet, in the labyrinthine world of politics, Milei found himself serving as an advisor during Bussi's tenure in Argentina's legislative branch. It was here, at the nerve center of political intrigue and strategy, that Milei truly cut his teeth in the art of governance.
As though lured by the melodious siren song of the private sector, Milei heeded its call, serving under the protective wing of Eduardo Eurnekian—an Armenian billionaire who bore the distinction, and perhaps the burden, of being a bitter adversary to another figure of immense wealth and influence, former Argentine president Mauricio Macri. This rivalry was as potent as it was toxic, with Milei taking arms against Macri during his administration. One could venture that such fierce loyalty to Eurnekian came with its own set of obligations: In the intriguing game of political chess that is Javier Milei's campaign, contributions are not simply a matter of writing a check and sending it off in the mail. No, the process is far more nuanced, wrapped up in layers of bureaucracy and corporate influence. If one wishes to financially bolster Milei's political ambitions, the road leads to Nicolás Posse, the general manager of the SUR Business Unit of Aeropuertos 2000. It is through Posse's hands that campaign funds must pass, a testament to the interconnected web of business and politics that defines Milei's campaign.
This thread of corporate involvement does not end with Posse. Indeed, it extends further, reaching into the echelons of provincial senatorial candidates. Prominent among these is a figure who holds a high-ranking position within the world of Eurnekian — a titan of industry whose influence has seeped into the very fabric of Argentine politics. Thus, the landscape of Milei's campaign emerges, a complex tableau of political ambition, corporate power, and economic strategy.
A solitary figure in his personal life, Milei remains unattached, a bachelor in a world where the wedding band is often seen as a badge of success. Those privy to his private world have scant evidence of romantic entanglements. His sister Karina serves as his emotional bulwark, a vestige of their shared childhood. Yet, Milei is not without passions. He wears his expertise in tantric sex like a medal, regaling television and radio audiences with tales of his sexual prowess during his political campaign—a tactic that resonates with South American voters who appreciate the machismo narrative.
Despite his right-wing declarations, Milei's lifestyle could easily be mistaken for that of a liberal New Yorker. Unmarried, with his canine companions—Milton, Murray, Robert, Lucas, and the dearly departed Conan, who purportedly urged him from beyond the grave to venture into politics—serving as his surrogate family, Milei confounds the traditional image of an upper-middle-class Roman Catholic Argentine of Italian descent.
A tireless devotee to his work —because raging workaholic is an understatement—, Milei's journey from Bussi's aide in Congress led him back to the private sector. His intellectual pursuits found a home at the very educational institute that had shaped his postgraduate years. This academic endogamy allowed Milei to remain ensconced in the intellectual environment he cherished, nurturing the next generation of economic thinkers in the process.
Having Studied The Man, Let’s Study His Politics
Mystical, esoteric, and solitary, we have dissected the man. Now, let us delve into the political ethos that propels him towards the illustrious Pink House, buoyed by a resounding 56% of the Argentine ballotage. Javier Milei stands on the precipice of power, brandishing a libertarian, anarcho-capitalist agenda shaped by the teachings of Rothbard—an ideology that often finds itself at the receiving end of propertarian counterarguments.
Sipping Kool-Aid from the chalice of Reagan-era trickle-down economics—or "voodoo-nomics," as some skeptics label it—Milei pledges a radical transformation of the economic landscape. His promises of dollarization and spending cuts, while bold, court the specter of economic uncertainty and the potential for mass protests.
Argentina, after all, grapples with a profound economic crisis. As of October, the year-on-year inflation rate stands at a staggering 142.7%. The International Monetary Fund grimly forecasts a contraction of 2.5% in the country's gross domestic product this year.
Milei's campaign was built on a bedrock of ambitious promises—to dollarize the Argentine economy, to drastically slash public spending, and to dismantle regulations and curb state intervention in an effort to stimulate private-sector investment. In his maiden speech as the election victor, Milei painted a stark picture of Argentina's "critical situation." His proposed solution? Swift and drastic reforms, eschewing gradualism in favor of immediate action. The stage is set, and as Milei steps into the spotlight, Argentina awaits the unfolding of his audacious economic experiment.
Ambiguity, Loneliness, Impulsiveness & Ghetto Ethics Are Bad Partners
From a political perspective, Milei can be viewed as a child of our times—an offspring birthed in the crucible of an uberized, post-pandemic, populist right-leaning zeitgeist. His voter base, largely disillusioned by the perceived mismanagement of Alberto Fernández, Mauricio Macri, and Nestor and Cristina Kirchner, is less concerned with the lofty ideological musings tucked away within the pages of "The Road to Serfdom", "Human Action", and "Man, Economy and State with Power and Market". Instead, their focus is firmly on the tangible realities of economic governance.
Milei's admiration for Donald Trump is revealing. Despite Trump being a man deeply entrenched within the establishment—a member of the very "Caste" that Milei professes to abhor—he finds something to respect. Similarly, he has expressed admiration for Jair Bolsonaro, a seasoned political player who ascended to the Planalto's highest office seemingly as a reaction to the status quo's inability to contend with Lula and his cronies’s political shenanigans.
Thus, Milei emerges as a paradox. He is both a critic of the establishment and an admirer of its figures, a man who navigates the murky waters of politics with a compass guided by both pragmatic reality and high-brow ideology.
Complex Political Landscape & The Discontents Of Applying Economic Shock Therapy
In the intricate tapestry of Argentine politics, Javier Milei, the newly elected president, finds himself in a peculiar position. His campaign rhetoric painted a picture of sweeping structural reforms, yet the reality of his party's modest presence in Congress may serve as a sobering counterpoint. Despite Milei's resounding victory—defeating his rival by approximately 12 points and securing wins in all but three of Argentina's 24 electoral districts—the legislative power of his party, Freedom Advances, is limited. With control over only 38 of the 257 seats in the Chamber of Deputies and a mere seven out of 72 in the Senate, the path to implementing his ambitious agenda promises to be an uphill climb.
A key pillar of Milei's platform, the official dollarization of Argentina's economy, seems especially elusive in the short-to-medium term. While he has reiterated his commitment to this cause, the legislative hurdles are formidable. Replacing the peso with the U.S. dollar would necessitate an act of Congress—a near impossibility given the current composition of the legislature. Furthermore, such a move would likely require constitutional reform, demanding two-thirds of the votes in both the Chamber of Deputies and the Senate. Milei has suggested a potential workaround in the form of a referendum. However, even organizing such a referendum would require Congressional approval.
Confronted with these limitations, it seems plausible that Milei will pivot towards de-regulation and spending cuts as initial steps towards realizing his political vision. Yet, these measures are likely to incite considerable social unrest. In lieu of immediate dollarization, Milei may seek to reduce Argentina's fiscal deficit, currently hovering around 2% of GDP, and eliminate bureaucratic red tape to make the country more attractive to foreign investors. His proposed measures include drastic reductions in the number of ministries, a halt to hiring new state employees, a shift from permanent welfare payments to time-limited unemployment benefits, and lifting subsidies for electricity, natural gas, and public transportation. While most of these policies can be enacted via executive decisions, bypassing the need for legislative support, they are likely to inflame tensions among the millions of Argentines who rely on state welfare and subsidies.
In this volatile landscape, protests and demonstrations may become a common sight, and Milei's campaign pledge to clamp down on protesters could lead to violent confrontations. Such heightened social unrest, coupled with soaring inflation levels, could destabilize Milei's government, and potentially trigger an early general election. As Argentina embarks on this new chapter under Milei's leadership, the stakes are high, and the path forward is fraught with challenges.
Polities Are Made Within High Trust Societies
During his high-octane presidential campaign, Javier Milei sent shockwaves through the diplomatic quarters with his audacious promises to recalibrate Argentina's foreign relations. He pledged to put a freeze on ties with China, citing its Communist governance, and Brazil, influenced by its left-leaning administration, while seeking to cozy up to the United States and Israel. Under Milei's watch, it seems likely that the corridors of Buenos Aires will chill towards Beijing and Brasilia, at least diplomatically and politically.
However, the prospect of completely severing trade ties with these nations seems far-fetched, given the economic realities. China and Brazil are not just any trade partners—they represent Argentina's top two export destinations. It's akin to biting the hand that feeds, a step too far even for the intrepid Milei.
Instead, a more plausible scenario could see Argentina pushing for a radical overhaul of the Mercosur trade bloc, which counts Brazil, Uruguay, and Paraguay among its members. The aim? To shake off its protectionist shackles and usher in a new era of free trade. An outright exit from the bloc, while dramatic, is less likely given the economic implications.
Another BRIC In The Wall
One potential political maneuver could be Argentina's withdrawal of its candidacy to join BRICS, a group that counts both China and Brazil as members, scheduled for January. This move, while symbolic, would have only modest immediate repercussions. After all, BRICS is primarily a forum for discussion, with limited economic impact. Yet, it would send a potent political message, underscoring Milei's commitment to reshaping Argentina's international alliances. As Milei steps onto the global stage, he does so with a clear vision, albeit one that is bound to stir controversy and debate.
Western Uniqueness Made Argentina Great, Ghetto Ethics Destroyed It
Consider, if you will, the figure of Javier Milei: a man marked by his solitude, his aggression, and his impulsivity. Picture him at the helm of Argentina's foreign policy, steering it with the same traits that have come to define him: an isolationist stance and an unwavering faith in the invisible hand of the market.
Begin by acknowledging the pivotal role the agroindustrial sector plays in Argentina's economy, a sector shaped by the vestiges of the European Manorial system and an ancient Indo-European instinct for land ownership and group persistence. This is a narrative as old as the nation itself, tracing its roots back to the European immigrants and Spanish conquerors who first set foot on Argentine soil and established the "Estancias" “the Gaucho”, and "Haciendas"—expansive swaths of fertile land ideal for cattle breeding and crop cultivation.
Yet Milei, in a move as audacious as it is perplexing, wishes to sever commercial ties with Argentina's primary trading partners, upending decades of political alignment. The absence of rationality in his proposed foreign policy betrays an alarming lack of foresight for a self-proclaimed pro-life, pro-gun ownership, right-wing libertarian. It's as though he's willing to embrace the very economic autarchy he criticizes in Juan Domingo Perón's doctrine, all within the very land that Perón once ruled—a country beleaguered by deep-seated corruption, union cronyism, and a bureaucracy borne out of accidental socialism.
It seems that Milei, solitary as ever, desires a similar fate for Argentina. He offers a glimmer of hope, promising to dismantle trade barriers and attract foreign capital. But is this enough to counterbalance the potential fallout from his radical reforms?
Milei's ideology is firmly anchored in Rothbardianism, characterized by its critique of the Austrian School of Economics. This school of thought emphasizes the ethical and moral implications of economic propositions, proposing a "proof of possibility"—a series of rational choices and tests of reciprocity—to demonstrate the feasibility of radical reforms.
As an economist, Milei is well-versed in concepts such as Pareto optimums and Rawlsian leftist ethics. Yet, he rejects these in favor of a classic liberal ethos, offering solutions within a framework of ethical constraints. This approach, while intellectually intriguing, raises questions about its practicality and potential consequences for Argentina's future.
No Trade Partners With Political Realignment.
To fully comprehend the labyrinthine complexities of Javier Milei's economic vision for Argentina, one must first acknowledge the formidable challenges he faces: the Central Bank's barren coffers, a staggering debt program of $44 billion owed to the International Monetary Fund, and the thorny issue of currency exchange rate control. Milei's ambitions for geopolitical realignment are not only ethically questionable but also impractical, considering the country's precarious financial situation.
China, as Argentina's most significant trade partner, is a crucial piece in this economic puzzle. With exports valued at over $7 billion—an increase of 29% from 2021—Argentina's ties with China are not easily severed. On ideological grounds, too, Milei seems unlikely to rock the boat. His vocal support for organ trade—a practice with which the Chinese Communist Party is all-too-familiar—suggests a certain alignment of values. Add to this the fact that Argentina exported 33,000 tons of lithium to China in 2022, feeding the insatiable appetite of Chinese tech factories, and the picture becomes even more complex.
Milei's adherence to the principles of libertarianism, inspired by thinkers like Hoppe and Rothbard, raises further questions. How can a man who misapplies separatist ethics between states provide the necessary scope of property for reciprocal exchanges and the rational formation of voluntary polities?
In his solitude and isolation, Milei seems to envision transforming Argentina into something akin to Crusoe's Island—a self-contained entity separated from the world by an oceanic moat. But such a vision neglects the realities of Argentina's deeply entrenched culture of tax evasion and reliance on the welfare state.
The Errors Of Mises & Rothbard In Privatization Are Caveats To Milei’s Intentions
Milei's push for privatization, borrowed from Rothbard's playbook, appears ill-suited to these realities. In a society where private goods are consumed by owners and commons prevent all from consumption, the transition from public to private ownership is fraught with challenges. Competition in the market incentivizes the production of private goods, but it produces negative incentives in the construction of commons due to loss aversion.
The solution, then, lies not in Rothbard's ethics—which merely replace low transaction cost state parasitism with high transaction cost universal parasitism—but rather in increasing incentives for the private production of commons as a status symbol and personal monument that can be passed down generations. It's about expanding the scale of commons produced by public means, free from privatization.
Milei's vision for Argentina is grand, but it is also riddled with contradictions and blind spots. As he navigates the treacherous waters of economic reform, he would do well to remember that in the real world, ideology must make room for pragmatism.
The question of morality, when examined through the prism of land ownership and the development of fixed capital, presents a fascinating conundrum. It plunges us into an intricate tapestry of socio-economic philosophies, where liberty and barbarism coexist, and where the ethics of different social structures are woven together in a complex dance of power dynamics.
Liberty Discourse Won’t Pay The Bills
Consider those individuals who, for various reasons, are unable to secure land or develop fixed capital—be it heavy production systems like metals or formal institutions for dispute resolution. Their inability does not stem from a lack of desire but from a complex interplay of socio-economic factors. Does this make them less moral, less deserving of liberty? Or does it merely underscore the return to a form of partial barbarism, where might is right, and the powerful dominate the weak?
Murray Rothbard, the libertarian economist, provides us with a unique perspective on this issue. He posits that the ethics of the traveling merchant, the ghetto, and organized crime are intrinsically linked. These are societies on the fringes, operating outside the bounds of conventional morality, yet they follow their own set of rules, their own code of conduct. Is there not a form of liberty in this, albeit one that differs from the norm?
On the other end of the spectrum, we find the aristocracy, the extended family warriors, farmers, and shopkeepers, those who made Argentina a breadbasket. They represent the high trust society, where ethics are grounded in community values and shared responsibilities. They create liberty as both a formal and informal institution, shaping societal norms and expectations. It's a different form of liberty from Rothbard's vision—one steeped in tradition and hierarchy—but liberty nonetheless.
So, we find ourselves navigating the treacherous waters of morality, caught between the rock of Rothbard's libertarianism and the hard place of aristocratic ethics. The morality of those who cannot ally to hold land and develop fixed capital is not lesser or diminished; it's merely different, shaped by their circumstances and the world they inhabit.
In this complex dance of power dynamics, liberty takes on different forms, each as legitimate as the other. The ethics of the traveling merchant coexist with those of the aristocrat, each playing its part in the grand tapestry of socio-economic philosophy. It's a dance as old as time itself, and one that will continue to evolve as we journey into the future.
Javier Milei, with his voracious appetite for the works of Ludwig von Mises, appears to have stumbled into a philosophical quagmire. In his fervor for commodity prices and the mechanics of the market, he seems to have overlooked the fundamental tenet of Mises' philosophy: human action. Rothbard, too, in his extension of Mises' theories, strayed into uncharted territory by appealing to what can be perceived as predatory ghetto ethics as a group evolutionary strategy.
Yet, it is Milei, with his ideological blinders firmly in place, who finds himself on a precarious ledge. He fails to grasp the inherent damage that arises from championing low-trust societies—those whose strategies hinge on eugenic reproduction, hyperethnocentrism, psychological aggressiveness, and wealth expansion within a tight-knit group. The fallout? A parasitic private sector that leeches off the public infrastructure, a phenomenon already rampant in Argentina.
Privatization Isn’t A Panacea
Milei's fixation on privatizing YPF, the state-owned oil company, is a testament to this flawed approach. This zeal for privatization suggests an unsettling pattern—one that employs temporal language to weave a seductive narrative of moral hazards, a narrative that ultimately benefits a select few at the expense of many.
The adoption of such practices in Milei's program signals a glaring oversight: the neglect of the metaphysical underpinnings of Mises' and Rothbard's theories. Even Karl Marx, despite his ideological divergence, grappled with these same metaphysical quandaries. They all developed strategies that, while flawed, were rooted in their cultural heritage and the assumptions it engendered.
In his quest for economic reform, Milei would do well to remember that the road to prosperity is not paved with short-term gains for a privileged few. It requires a deep understanding of the intricate interplay between economics, society, and human action—a lesson that seems to elude him in his current trajectory.
In the labyrinthine world of Argentine politics, where the specters of corruption and union cronyism loom large, Javier Milei's ascendance is no less than a Herculean feat. To navigate this quagmire, he must deploy an arsenal of measures that encompass symmetry of knowledge, proof of such symmetries, and a staunch prohibition of involuntary external transfers. Yet, the task remains as intricate as it is daunting.
Humans, in their infinite complexity, often struggle with rationality. Yet, we possess an uncanny ability to discern moral patterns and status signals. We respond instinctively to these patterns, experiencing a flurry of positive and negative moral reactions. Even if we cannot analytically separate and articulate these instincts, they guide our actions and decisions, often in ways we do not fully comprehend.
The recent Argentine ballot stands as a testament to this phenomenon. The electorate didn't flock to the polls to endorse Milei per se, but rather to express their discontent with their predecessors. It was less a vote for change and more a chastisement of the past—a symbolic rejection of old guard politics.
This intricate dance of politics and psychology brings us to an intriguing crossroads—the intersection of pseudoscientific praxeology and Hoppe's argumentation ethics. While these theories offer valuable insights into human behavior and can prove useful for Milei, they are essentially descriptive. They were not conceived casually, nor are they universally applicable—especially to a country like Argentina, steeped in its unique values, morals, customs, traditions, and attitudes.
In the end, Milei's political journey is a masterclass in navigating the treacherous waters of Argentine politics. The challenge lies not just in understanding the flawed and failed theories of Mises, Rothbard, and Hoppe, but in adapting them to the unique cultural fabric of Argentina—a land where politics, tradition, and culture intertwine in an intricate tapestry of power dynamics: Can a lonely and unstable man fix the problems of an unstable country with theories that are yet to prove successful as they propagandize them from think tanks centered around group evolutionary strategies?
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