Javier Milei: New president tells Argentina 'shock treatment' looms
BBC NewsDec 02, 2023
'Shock Treatment': Argentina Devalues Peso by 50%
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The Facts
Javier Milei’s newly sworn-in administration devalued Argentina’s peso by more than 50% against the US dollar on Wednesday as part of the libertarian’s comprehensive plan to reverse the country’s debilitating economic crisis.
Economy Minister Luis Caputo on Tuesday announced the plan to devalue Argentina’s currency from 400 pesos to the US dollar to 800, while Milei warned of the looming shock treatment to deal with his country’s economic "emergency" in his inaugural speech earlier this week. He said, "For a few months, we're going to be worse than before."
The Spin
Right narrative
Javier Milei is staying true to his campaign promises and doing what’s best for Argentina, even if it stings in the short term. He understands that triple-digit inflation and a 40% poverty rate cannot come down overnight and that the only viable solution is to drastically reduce the size of government. While many politicians around the world print more money to temporarily stave off growing doom, Milei is taking a principled stand that will benefit future generations of Argentinians.
Left narrative
The man who can't understand the data on COVID deaths shouldn't be in charge of national economic policy. Milei is taking a radical and dangerous approach that could further damage Argentina’s fragile economy and democracy. The far-right leader calls himself a libertarian but is acting far more like a fascist with his austerity measures as he exploits the anxiety of Argentinians to portray a doomsday scenario that can only be fixed by him.