Argentina's Economic Revolution: Milei Wins

In this Institute of Economic Affairs podcast, IEA Director of Communications Callum Price interviews Axel Kaiser, co-founder and president of the Foundation for Progress in Chile and senior research fellow at the Adam Smith Centre at Florida International University. The conversation examines Argentina’s dramatic midterm election results under President Javier Milei, exploring how the libertarian government survived a critical political test after months of legislative battles, economic uncertainty, and a devastating provincial election loss that threatened to derail the entire reform agenda.Axel discusses the political warfare waged by Peronist and Kirchnerist opposition forces, who passed legislation to increase government spending and nearly collapsed Milei’s stabilisation program. The conversation covers how rising inflation, plummeting economic growth, and a 14-point loss in Buenos Aires provincial elections created fears that Argentina would revert to its century-long cycle of populism and economic failure. Despite these setbacks, the midterm results on Sunday represented a referendum between free markets and classical populism, with voters decisively backing Milei’s radical reforms.The interview concludes with lessons for Western democracies, particularly the UK and Europe. Axel argues that Argentina proves freedom works and that voters will support radical austerity and free market reforms if leaders tell the truth about economic realities. He criticises the welfare state model as no longer viable and expresses pessimism about Europe’s willingness to embrace necessary reforms, while suggesting the UK’s less ideological culture might make it more open to change than countries like Germany or France. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit economicaffairs.co.uk/subscribe