From Hero to Headache: Javier Milei's Argentina Faces Economic Freefall as Global Right-Wing Supporters Go Silent
Once hailed as a libertarian trailblazer, Argentina’s President Javier Milei now finds himself presiding over an economic disaster that has shaken his administration to its core. The self-proclaimed political outsider and economic radical who came to power on a wave of anti-establishment sentiment is now grappling with collapsing financial markets, widespread civil unrest, and growing accusations of corruption. Even more telling is the sudden silence from his international fanbase—figures like Nigel Farage, Donald Trump, and Elon Musk—who once praised Milei as a visionary.
What began as a bold libertarian experiment in Latin America’s second-largest economy is now being dissected by analysts and political observers as a cautionary tale for the global populist right.
The Rise of Javier Milei: The “Chainsaw Economist”
Milei captured global attention even before assuming office. With wild hair, black leather jackets, and a giant red chainsaw as his signature prop, the economist-turned-TikTok star promised to tear down Argentina’s bloated bureaucracy and fight what he called “la casta”—the corrupt political elite. His anti-state, pro-market rhetoric resonated deeply with voters frustrated by inflation, stagnation, and decades of political dysfunction.
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| Donald Trump with Javier Milei at the UN general assembly in New York last month. |
Endorsements poured in from across the international right:
- Donald Trump: “My favourite president.”
- Elon Musk: “I love Javier Milei.”
- Nigel Farage and Kemi Badenoch referred to Milei as a political model.
- Niall Ferguson, the historian and commentator, called Milei’s early economic performance a “man-made miracle.”
Economic Mirage: Milei’s Policies Trigger Market Panic
For a brief moment, Milei appeared to be delivering on his promises. Inflation began to drop, and economic stability seemed within reach. But the so-called “miracle” began to unravel fast. The president, once adamant about scrapping Argentina’s domestic currency and moving to the US dollar, started boasting about the strength of his “super peso.” Investors, however, weren’t convinced.
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In the span of just a few weeks, the Argentine peso plummeted, and billions in capital fled the country. In a dramatic twist, Donald Trump’s administration pledged $20 billion in emergency aid, alongside a new IMF rescue package. All this came just ahead of midterm elections that are expected to deal Milei a humiliating blow.
“We are seeing in real time how a government can melt in front of our eyes,” said Argentine journalist Alejandro Bercovich. “I never thought they would collapse this quickly.”
From Populist Outsider to Political Liability
Milei’s once-dominant image as a bold reformer is now being eclipsed by accusations of corruption, economic mismanagement, and social neglect. His sister and closest advisor—whom Milei himself calls “the boss”—has been accused of taking a 3% cut on government drug contracts. Milei’s response? First, silence. Then he blamed AI-generated fake news. Finally, he laughed off the kickback, suggesting 3% was too small to matter.
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| Javier Milei and the Italian prime minister, Giorgia Meloni, at the inauguration of Donald Trump, Washington DC, 20 January 2025. |
Meanwhile, his “chainsaw economics” approach—massive layoffs, the closure of public agencies, and severe cuts to welfare—has left half of Argentina’s working population unable to cover their monthly expenses, according to recent reports.
Violent Protests and Electoral Rejection
The public backlash has been swift and violent. During a campaign stop in Buenos Aires, Milei was met with stone-throwing crowds and a resounding electoral defeat. While Buenos Aires has historically leaned Peronist, the opposition’s strong performance marked a dramatic reversal in fortune for a president who just months earlier had reshaped Argentina’s political map.
“The people thought this guy would make them better off,” said Maria Victoria Murillo, a Latin America expert at Columbia University. “Now they’re deserting him.”
Currency Collapse and Hypocrisy at the Top
Milei once threatened to abolish Argentina’s central bank. But in the wake of the peso’s crash, that same institution has been injecting billions into the market to stabilize the currency. Former Trump Treasury Secretary Scott Bessent blamed “speculators” for the crisis—a curious claim coming from someone who once helped George Soros break the British pound during the 1992 ERM crisis.
So much for the anti-elite, anti-globalist, outsider rhetoric. Now, Milei finds himself dependent on international financial institutions and the same global elite he promised to destroy.
A Global Lesson in Libertarian Failure
The irony is rich. For months, Milei was showcased as a model for hard-right populists around the world. His policies, media savvy, and outsider status made him a darling of the global right-wing populist movement. But now, those very supporters—Farage, Musk, Trump, and others—are eerily silent, as Milei’s presidency descends into chaos.
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| Javier Milei and Israel’s prime minister, Benjamin Netanyahu, at the UN general assembly last month. |
“No, no, no. People in Britain must know: this has been a disaster from which it will take us years to recover,” Bercovich warned, in disbelief that British politicians like Farage and Badenoch once saw Milei as a role model.
The fall of Milei offers more than just schadenfreude—it provides a stark warning. Libertarian populism, however viral it may be, cannot substitute real governance. The chainsaw politics that made Milei famous are now a global case study in how not to run a country.
Key Takeaways:
- Javier Milei’s presidency has plunged into crisis amid economic collapse and corruption allegations.
- Right-wing global figures who once praised him are now noticeably silent.
- The peso has plummeted, and Argentina is dependent on foreign aid and IMF loans.
- Public anger is boiling over, and midterm elections may seal Milei’s political downfall.
- His downfall highlights the dangers of viral populism and shock therapy economics.
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