Javier Milei's 'Thatcherite' Economic Reforms Spark Division in Argentina

Thu Oct 16 2025 21:36:00 GMT+0300 (Eastern European Summer Time)

With radical austerity measures reminiscent of Margaret Thatcher's policies, Javier Milei has garnered international praise but faced significant domestic backlash amid rising poverty and protests.

Argentine President Javier Milei has implemented Thatcher-like economic reforms to stabilize the country’s troubling economy. While he has drastically reduced inflation and achieved a fiscal surplus, the measures have led to widespread protests, job losses, and harsh economic adjustments for ordinary citizens. As multiple sectors express their discontent, Milei faces a crucial test in the upcoming midterm elections to maintain support and sustain his controversial policies.

In September 2023, Javier Milei, clad in a black leather jacket and hoisting a chainsaw, rallied supporters in Buenos Aires, emphasizing his radical approach to Argentina's bloated state structure. Since taking office, Milei has gained notoriety for his severe economic reforms, which he believes are essential for curbing inflation—over 211% annually at the time he assumed presidency—and reducing national debt.

Rather than simply 'trimming the fat' of government expenditure, Milei has promised to take a chainsaw to ministries and subsidies, aiming to combat the political elite he terms 'la casta.' His unconventional campaign tactics, including dressing as a 'libertarian superhero' and smashing a piñata of the Central Bank, have captured headlines.

Despite achieving a fiscal surplus for the first time in 14 years and noticeably reducing inflation to around 36%, these changes have brought hardship. The drastic cuts have led to widespread dissatisfaction, especially in poorer communities that feel the brunt of reductions in pensions and public services. Public protests have erupted across the country, with demonstrators clashing with police in demonstrations against Milei's austerity measures.

Internationally, Milei has attracted the admiration of figures such as British Conservative leader Kemi Badenoch and former U.S. President Donald Trump, who called him 'my favorite president.' The two are set to meet, emphasizing a strengthening relationship between Argentina and the U.S. amidst economic turmoil.

However, critics argue that the burden of Milei's reforms falls disproportionately on the working class, diminishing living standards and social services. Analysts warn that if public faith diminishes, the significant gains counteracting Argentina's historical fiscal recklessness may be jeopardized.

As the upcoming midterm elections approach, Milei's government faces an existential challenge: will it maintain the support necessary to stabilize its economic agenda, or will unrest lead to a reversal of progress? With the political landscape shifting rapidly, the outcome remains uncertain, posing questions about the sustainability of Milei's radical approach.