Argentina’s president, Javier Milei, is cutting back in every possible way as he attempts to dig the country out of one of its worst economic crises in its history.
In a video that’s now gone viral, the economist is seen traveling on a commercial flight rather than a private jet, speaking briefly to fellow passengers as he led a “long live liberty!” chant.
The airline company Milei was flying with, Aerolineas Argentinas, was re-nationalized in 2008, and since then the government has lost $8 billion of its funds. For many years, Aerolineas Argentinas has been in financial ruin.
Argentina can control inflation and de-growth in part by closing down ineffective state-run businesses, according to Milei.
The nation is dealing with a 140% inflation rate and a 5% Gross Domestic Product (GDP) growth deficit. [...]
Earlier this month, Milei slashed car purchases for government officials by 50% and also announced a reduction in government drivers and vehicles. (OANN)
President Milei is welcomed by fellow passengers as he flies commercial to reduce government spending in Argentina.
— Visegrád 24 (@visegrad24) December 30, 2023
🇦🇷 pic.twitter.com/WkJDi3wlQL
President of Argentina, Javier Milei flies commercial to reduce the cost of Governance. His fellow countrymen and passengers are happy as they express their delight upon seeing him on board the plane.
— Max Obesi (@IamMaxObesi) December 30, 2023
Now, this is Leadership. pic.twitter.com/ZrwFMA3CGu
Javier Milei was spotted yesterday flying commercial to Mar de Plata.
— Ada Lluch 🇪🇸 (@ada_lluch) December 30, 2023
It’s his personal vacations so he used his personal money.
Last week, the President of Spain used the Presidential Private Jet to go to Toledo for vacations, which was 93 miles away from Madrid.
The… pic.twitter.com/UrBpeCyRjt
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The video comes as Milei is taking drastic measures to address Argentina's economic crisis.
In his inauguration speech, he warned that the fiscal shock to the country would be painful as emergency economic measures are undertaken to “avoid hyperinflation.”
“[T]he conclusion is that there is no alternative to adjustment and no alternative to shock,” the president said in that speech. “Of course, this will hurt the level of activity, employment, real wages, on the number of poor and destitute people. There will be stagflation, it is true, but it will not be very different from what has happened in the last 12 years. Let us remember that in the last 12 years GDP per capita has fallen by 15% in a context where we have accumulated inflation of 5,000%.
“So we have been living in stagflation for more than a decade," the libertarian continued. "Therefore, this is the last straw to begin the reconstruction of Argentina.”
Last month, chief spokesman Manuel Adorni said the nation is “heading towards hyperinflation” and “the decision is to avoid it.”
With inflation hitting 161 percent, according to the Associated press, Argentina’s currency losing roughly 90 percent of its value against the dollar, and poverty affecting about 40 percent of the population, “shock economic measures” have been announced.
These moves, which the government has been clear will make the economic situation “worse than before” in the short term, include devaluing the Argentine peso by 50 percent, cutting state jobs and subsidies for gas and electricity, and reducing the number of ministries from 18 to nine, among other efforts.
“If we continue as we are, we are inevitably heading toward hyperinflation,” Economy Minister Luis Caputo said last month. “Our mission is to avoid a catastrophe.”
The International Monetary Fund, which has repeatedly bailed Argentina out, has been supportive of the Milei administration’s efforts.
“These bold initial actions aim to significantly improve public finances in a manner that protects the most vulnerable in society and strengthen the foreign exchange regime,” IMF spokeswoman Julie Kozack said in a statement. “Their decisive implementation will help stabilize the economy and set the basis for more sustainable and private-sector led growth.”
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