Such a dissertation could not be found at a Bolsonaro rally. This alone suggests that the Milei phenomenon should be understood in light of Argentina’s own history, not in terms of a neighboring country’s contemporary politics.
As I wrote for Reason in 2020, Argentina became one of the richest countries in the world at the end of the 19th century because it followed the precepts of Juan Bautista Alberdi, the classical liberal polymath whose writings informed the crafting of the country’s 1853 constitution. Having escaped the regime of Juan Manuel de Rosas, a particularly brutal tyrant, Alberdi opposed militarism and advocated for “free immigration, commercial freedom, railroads, and unrestrained industry.” In general terms, this was the model that a series of elected governments put in place between 1880 and 1916, a period that roughly coincides with Argentina’s golden age as an exporting powerhouse. Buenos Aires began to rival New York commercially, and Paris aesthetically.
What changed since then? Once liberals turned to economic nationalism—President Hipólito Yrigoyen (1916–1922, 1928–1930) limited foreign companies’ ability to operate the railroads and founded the world’s first state-owned oil company in 1922—they paved the way for corporatist strongman Juan Domingo Perón, whose movement has dominated Argentine politics with few interruptions since the 1940s. The Peronist era has been one of steep national decline. The question now is whether a new era is about to begin.
Benegas Lynch (who is a fierce critic of Trump) considers Milei an ideological heir to Alberdi and credits him with having reintroduced classical liberal ideas into politics after an 80-year absence. Milei himself constantly refers to Alberdi and says he strives to reclaim his legacy. On Sunday, he told his supporters that, if Argentina rediscovers its tradition of liberty, it can become a world power again in a few decades’ time. Is this comparable to, say, Trump’s MAGA nationalism? Only if you ignore the methods that Milei has said he plans to employ.
Milei’s main proposals include a unilateral commercial opening for highly protectionist Argentina, getting rid of the central bank, and mothballing the national currency by dollarizing the economy—a far cry from Trump’s economic nationalism. In fact, nationalists on both the left and the right oppose Milei due to his intent to dollarize. However, as my colleague Gabriela Calderón and I argue in a recent Cato Institute policy brief, dollarization is the right policy to tame the triple-digit annual inflation levels under which Argentines now suffer. Milei is the only prominent politician who recognizes that.
Would Milei’s political program pass all libertarian purity tests? Not if you consider, for instance, the unfunded promises in his policy proposals, such as shutting down ministries without firing any public employees. Milei also says that he opposes liberalizing drug laws because addicts make use of the public health care system, thus creating an externality at the cost of the taxpayers. To me, that sounds like a clever way to appeal to more conservative voters without losing libertarian bona fides. Electorally, the wager has paid off so far.
A once-prosperous nation has become an impoverished, inflation-ridden, brain-drained, serial defaulter to its international creditors. For exasperated voters, taking a gamble on the one candidate who understands the ideas of liberty might be the safest available bet.