A prosperous & well-educated nation can still be destroyed by economically illiterate socialists.
Javier Milei – the libertarian candidate who swept to victory in Argentina’s Presidential election – represents an electorate making a decisive change in the face of persistent socialist failure.
The economic status quo in Argentina is horrendous, with inflation currently around 140%, which is only a continuation of Argentina’s long-running economic stagnation and repeated bouts of inflation that wipe out the savings and purchasing power of Argentinians.
Faced with either continuing with the status quo or electing an outsider promising a clean break from socialism, Argentinians chose the latter.
For quite a while, Argentina was on the same path as the United States and Canada. It was going to be an advanced, high-income first-world nation. But Argentina fell under the sway of Peronism, and embraced increasing state-intervention and socialist economic illiteracy.
Argentina then kept on falling further and further away from what could have been:
Kind of amazing how steady Argentina's retreat from the economic frontier has been. Aside from a bit of bumpiness in the 1990s and 2000s it's essentially a fairly straight and consistent decline in the GDP per capita rankings globally. pic.twitter.com/uyhG8bdkUJ
— Mike Bird (@Birdyword) November 21, 2023
Rather than make difficult short-term adjustments for long-term gain, Argentinians repeatedly voted for what seemed the ‘easiest’. They voted for more spending, more intervention, more money printing, more defaults, and on and on.
Argentina's Peronist Disaster.
This is the legacy they leave to Milei.
Fiscal deficit of 5% of GDP.
$400bn government debt.
Country risk 2,400 bp.
Funds rate 133%
Central bank remunerated liabilities (Leliqs) $23 billion. 10% of GDP.…
— Daniel Lacalle (@dlacalle_IA) November 20, 2023
So, the key takeaway from Milei’s win is that Argentina’s are trying to vote themselves out of socialist-induced decline.
There is a clear warning for Canada here.
We should be the richest nation on Earth on a per capita basis. The world’s strongest economy and military power is our next door neighbour and closest ally. We have nearly endless natural resources. We have a well-educated population.
But we are in the early stages of heading down the same path that wrecked Argentina. Canadians voted for an economically illiterate socialist – Justin Trudeau – who is now holding on to power because of another economically illiterate socialist – Jagmeet Singh. And they are both overseeing a rapid decline in Canada’s per capita GDP.
Thankfully, we don’t have to spend decades stuck in an Argentina-style socialist nightmare.
We can vote our way out soon by defeating Trudeau and electing Pierre Poilievre and the Conservatives. Let’s make the most of that chance and save our economy and country before it is too late.