Will 'Hot Potato' Derail Milei?

Shortly after Milei's election in Argentina, I recall seeing something about him on the news at a relative's house. I said something to the effect of I want to like him, but between his inconsistency and political opposition, I don't see him doing much good.

I was thinking both of his being a professed anarchist and of the altruist-collectivist influence of Catholicism on the culture of Argentina. I could not have foreseen Milei's evolution as a political thinker, nor, as best I can surmise, did I appreciate how badly-off Argentina was.

The latter might explain why his explanations of his agenda have such a receptive audience and why that agenda has so quickly borne fruit, as John Stossel recently reported:

I wish America's politicians would pay attention to Milei's free market reforms.

Argentina's rent controls had caused a shortage of apartments.

"When Milei lifted rent controls," says [Cato's Ian] Vasquez, "the supply of apartments in Argentina tripled and their price fell by about half!"

He also deregulated airlines, allowing new routes, pricing, and competition.

Argentina still has big problems, like lots of poverty. Argentina's tariffs, import bureaucracy, and high sales taxes make consumer goods expensive; an $800 iPhone costs almost $3,000 there.

...

Milei's success not only shows that cuts are possible, but that when they are explained intelligently, they are popular. After Milei cut government, his approval rating rose 6 points.

Sadly, I also could not have foreseen what is at best a horrendous misstep: Milei's tweet in support of a meme coin. Although he quickly retracted the statement, the damage -- to investor portfolios and his reputation -- was already done.

Yaron Brook discussed the breaking news of the Libra token scandal in Argentina.

As Yaron Brook notes (embedded above), the tweet amounted to government intervention in the economy, coming as it did from a government official. Worse, since such currencies are not backed by commodities, they are not safe stores of value, as their notorious volatility should indicate. (The Reuters piece aptly likens "investment" in such instruments to a game of hot potato.)

The move looks careless at best and corrupt at worst, and Milei is facing impeachment over it.

I completely agree with Yaron Brook that, for whatever faults Milei has, his downfall, should it occur, will be tragic for the cause of freedom, and not simply because of his pro-freedom economic moves.

-- CAV