Market Talk – November 29, 2024
ASIA: The major Asian stock markets had a mixed day today: • NIKKEI 225 decreased 141.03 points or -0.37% to 38,208.03 • Shanghai increased 30.76 points or 0.93% to 3,326.46 [...]
Javier Milei’s First Day in Office – Reduce the Size of Government
Argentina’s new President, Javier Milei, is making headlines around the world for vowing to radically change Argentina’s failing political system. Milei campaigned on implementing a “chainsaw plan” that would swiftly cut useless bureaus that drain government resources with no or minimal benefit to the public. Milei stuck to his campaign promises and slashed the number of federal agencies from 18 to 9.
El Presidente de la República Argentina Javier Milei firmó el decreto de designación de ministros. Este decreto reduce la cantidad de ministerios existentes a 9. pic.twitter.com/FNB18pC7va
— Oficina del Presidente Javier Milei (@OPEArg) December 10, 2023
The reduction in the size of the government reflects Milei’s proactive approach and sets a precedent for the drastic measures he deems necessary to overcome Argentina’s economic challenges. The ministries that remain include Interior, Foreign Relations, Defense, Economy, Justice, Security, Health, and the recently created Ministry of Human Capital, which consolidates several previous ministries. Mileni cut agencies such as the Ministry of Women Genders and Diversity, which he believed existed as leftist pet projects.
Inflation is quickly rising close to 200%, and over 40% of the population lives below the poverty line. The nation’s net foreign currency reserves are estimated at negative -$10,000,0000. The International Monetary Fund (IMF) and some private creditors expect a large payment by the end of January to the tune of $4 billion. “There is no money,” the new president said before Congress. “The outgoing government has left us on track towards hyperinflation,” Milei said. “We are going to do everything we can to avoid such a catastrophe.”
Milei rightfully believes that the country is close to collapsing. He has an unnerving task ahead of him as major changes are necessary to reverse years of policies that ruined a nation. Imagine choosing to allocate funds to a diversity panel while nearly half the country is food insecure. Reducing the size of government is a guaranteed way to cut expenses and useless regulations that do not benefit the people.
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