Argentine President Javier Milei’s Economic Policies Face Severe Criticism as Inflation Surges

By Jose Quarracino
Tuesday, 30 September 2025 04:02 PM EDT

Argentine President Javier Milei, who recently relied on a financial bailout from the U.S. Treasury to avoid default, has publicly claimed his nation’s public finances are stable and under control. Without assistance from Scott Homer Bessent, the Argentine government would have faced irreversible insolvency.

A month prior, on August 21, libertarian economist Saifedean Ammous—adviser to Salvadoran President Nayib Bukele—published a critique of Milei’s economic policies on the Ron Paul Institute website. The analysis dismantles Milei’s portrayal as a liberal or libertarian figure, labeling him an “inflationary populist” who diverges from core libertarian principles.

Ammous previously highlighted inconsistencies in Milei’s 2023 pledge to avoid money issuance. Data revealed Argentina’s monetary supply soared in 2024:
– M0 (monetary base): +209%
– M1 (M0 plus deposits): +133%
– M2 (M1 plus savings accounts): +93%
– M3 (M2 plus foreign currency deposits): +123%

The study underscored that Milei’s government issued far more money in one year than the preceding Kirchner administration over four years. Despite this, Milei has blamed previous governments for Argentina’s economic woes.

Additionally, the current administration slashed public investments in infrastructure, salaries, pensions, healthcare, and education. Job losses reached 184,000, while real wages rose by 32%.

Ammous further noted that Argentina’s public debt increased by 19.4% within six months of Milei’s tenure, rising from $370 billion to $442 billion. This contradicts Milei’s anti-debt rhetoric, as he has criticized borrowing for burdening future generations.

The author argued that Milei’s policies mirror traditional Latin American populism, using inflation and debt to secure short-term popularity while creating long-term instability. Despite his free-market claims, Ammous described Milei as a “statist producer of inflation and indebtedness,” undermining libertarian principles.

Milei’s administration has faced criticism for its contradictory approach, with some questioning the risks of U.S. support for a leader whose policies appear to contradict his stated ideologies.