‘The State Destroys Wealth’ — Javier Milei on Argentina’s Inflation Crisis

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Argentina faces hyperinflation, with the annual inflation rate at its highest since the early ’90s. The country’s general election is set for next month, and economist Javier Milei is projected to win by a wide margin. In a recent interview with Tucker Carlson, Milei attributed Argentina’s hyperinflation to the failures of socialism.

‘Frogs in a Pot of Water’ Is a Good Analogy for Argentina’s Slow Economic Decline, Says Milei

On September 14, 2023, Carlson posted an interview on the social media platform X with Argentine economist, businessman, and politician Javier Milei. The La Libertad Avanza political coalition leader discussed inflation and other topics, including abortion and climate change, with the former Fox News anchor. Milei pointed to socialism and the state for the country’s economic woes. His advice to the world:

Never embrace socialism … or the siren song of social justice.

In the video, Carlson remarks on Argentina’s beauty but notes that diners at restaurants use large stacks of fiat currency for meals. In August, Argentina’s inflation rate hit 124.4%, leading to a major cost-of-living crisis. The economic downturn troubling Argentina has bolstered Milei’s popularity. When Carlson asked about the inflation, Milei said it stemmed from socialism’s shortcomings.

“The issue is that Argentina began to embrace socialism over 100 years ago,” Milei told Carlson. “The analogy of frogs in a pot of water is useful here. When you turn up the heat slowly, the fogs don’t realize it. Until the time comes and when they try to jump out, it’s too late and they end up dead.”

Milei said that while socialism initially seemed appealing in Argentina, it’s a flawed economic system. He described a socialist system as: “If there’s a need, there’s a right.” He added, “It’s a problem because there can be infinite needs, but someone always has to pay for those rights. And the resources for that are finite. That sparks a conflict between infinite needs and finite resources.” The presidential candidate continued:

The conflict is easy to resolve, through economic freedom and private property. This is a natural mechanism to resolve this tension in society. But socialists don’t much like the invisible hand; they prefer the claws of the state.

Argentina’s general election is set for October 22, 2023, and a major political shift is anticipated. Milei plans to reduce the government’s footprint by eliminating 10 ministries and aims to significantly decrease public spending. He also intends to adopt another currency or commodity as his administration dissolves Argentina’s central bank.

In his conversation with Carlson, Milei stressed, “The state does not create wealth, the state destroys it.” The politician ardently champions the virtues of free markets, asserting that the non-aggression principle is the optimal path for the well-being of Argentine citizens.

“[Socialists] hide it behind the discourse of social justice,” Milei said. “This sort of social justice is deeply unjust because it’s premeditated by unequal treatment under the law and preceded by a robbery.”

What do you think about Javier Milei’s opinions about Argentina’s economic woes? Share your thoughts and opinions about this subject in the comments section below.