Milei's Mandate

Javier Milei’s sweeping victory in Argentina’s midterm elections is nothing short of historic. His coalition, La Libertad Avanza (“Liberty Advances”), captured roughly 40 percent of the national vote — outpacing the Peronist opposition by nearly ten points and flipping Buenos Aires province for the first time in decades. For a country mired in chronic inflation, recurring defaults, and economic malaise, Milei’s success is not merely a partisan triumph — it is a referendum on 40 years of failed economic management and a potential last chance to restore the principles of limited government and open markets to Argentine public life.

The results consolidate Milei’s political position and strengthen his economic mandate. When he was elected president in 2023, many viewed his self-styled libertarianism and chainsaw-wielding campaign antics as a form of performance art. But nearly two years later, Argentines have doubled down on his growth experiment, rewarding his early austerity and liberalization efforts with renewed legislative backing. Milei’s efforts have also won the backing of President Donald Trump and Treasury Secretary Scott Bessent, who have extended Argentina a dollar swap line. The message, following Milei’s win in the midterm election, is clear: voters are willing to endure short-term pain for the promise of long-term stability (for now).

That willingness reflects a profound shift in Argentine political psychology. For decades, Peronism has been the prevailing force in Argentine politics. The printing press financed fiscal deficits; subsidies and controls substituted for productivity; and each successive crisis brought another IMF bailout. Inflation became a way of life. In 2023, consumer prices rose over 200 percent year-over-year but have since fallen substantially since Milei came into office, appointed a competent inflation fighting central banker, and cut fiscal deficits.