In the last twelve months, theArgentina has become a laboratory of economic renewal under the leadership of Javier Mileia president who revolutionized the global political debate with bold and innovative choices. His rise to power, initially greeted with skepticism and derision, especially by those who ignored his solid cultural background in economics and political philosophy, is now demonstrating that the audacity in moving in the wake of classical liberalism, traced by the exponents of the Austrian School, and pursuing free market principles can translate into concrete and tangible results. Our country, plagued by structural economic problems, could draw important lessons from this approach.
And it’s true.
Milei also addressed the issue of statism abolishing entire government departments. This modus operandi not only led to the reduction of public spending, but also freed up resources for more productive initiatives. Our country, suffocated by an elephantine and often inefficient bureaucracy, should do the same thing. A profound review of state functions, with the elimination of useless bodies and overlaps, would in fact lighten the tax burden on citizens and stimulate competitiveness.
Another significant reform, which did not take long to prove successful, was the liberalization of the rental marketan industry previously strangled by regulations that had led to supply shortages and a black market. By removing the restrictive regime and repealing the related laws, Argentina has seen a 170% increase in the supply of housing units and a sharp drop in prices. In Italy another strategy is being pursued, despite the evident failure of the interventionist policies carried out up until today and the suffering, bordering on collapse, of the real estate market, in which stringent regulations and oppressive taxes discourage investments. Milei’s lesson is clear: only a free market, free of state interference, can guarantee housing affordability. Liberalizing the sector, both in construction and in property management, is essential to resolve the rental crisis and make housing an opportunity for all, not a privilege for the few.
The Argentine government has also focused on strengthening of the energy sectorwith particular attention to Vaca Muerta in Patagonia, one of the largest shale gas and oil fields in the world. Targeted investments and bureaucratic simplification have attracted international capital, relaunching a crucial sector for Argentina’s economic growth and global competitiveness. Italy, which suffers from energy dependence and high costs for families and businesses, could draw inspiration from this strategy.
Another strategic move by the Argentine chief executive was the abolition of tariffs on importsreducing costs for consumers and stimulating the competitiveness of businesses. In a world that is increasingly leaning towards protectionism, this policy is a beacon for nations that want to grow economically. The Italian government, with its strong vocation for exports, should promote trade liberalization at both a national and European level, resisting the sirens of protectionism.
Other reforms are in the works and will be current soon. Meanwhile, it should be underlined that the South American president’s approach also received the appreciation of International Monetary Fund (IMF)who recognized his government’s progress in containing inflation and reviving and stabilizing the economy. This recognition is not only symbolic, but represents a signal to the international markets of the credibility of the new Argentine course, an element that could also be valuable in the Italian context, often considered unreliable due to its high public debt and the difficulties in implementing reforms .
Certainly, the action taken by the Argentine President is not without criticism. Some problems await resolution, such as poverty and the process towards fulldollarization, which has not yet been completed. However, it is essential to consider that his government has only been in office for a short time, just a year, after decades of failed interventionist, demagogic and welfarist policies. Despite this, the first signs of the reforms he has implemented highlight that a return to the system of principles of liberalism and the free market can produce concrete results. Our country, too often immobilized by political compromises and the influence of corporate interests, would need a leader who retraces the deeds of the admired and appreciated Argentine liberal-libertarian, capable of breaking with conventions and introducing courageous reforms. Only in this way could economic stagnation be overcome, by decisively embracing economic freedom, reducing state interference and restoring centrality to citizens and businesses in building their own future.
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