Javier Milei sworn in as Argentina's president, pledges to waste no time in cutting taxes

Self-described anarcho-capitalist Javier Milei was sworn into office as Argentina’s newly elected president on Sunday.

Milei wasted no time in rallying his new constituents together to save his country’s economy. During his inaugural address, the newly sworn in president declared the South American country would have to make spending cuts.

“We don’t have alternatives and we don’t have time,” Milei told a crowd of thousands in the capital, Buenos Aires, according to the Associated Press. “We don’t have margin for sterile discussions. Our country demands action, and immediate action. The political class left the country at the brink of its biggest crisis in history. We don’t desire the hard decisions that will need to be made in coming weeks, but lamentably they didn’t leave us any option.”

While Milei was largely seen as the underdog candidate to his Peronist opponent and former minister of economy, Sergio Massa, his victory was hailed by some who believed Argentina’s economy needed a jolt of libertarianism.

The South American country has the continent’s second-largest economy, but has been enduring 143% annual inflation, causing the country’s currency to take a significant downturn.

It also owes $45 billion in debt to the International Monetary Fund (IMF), with $10.6 billion due to private and multilateral creditors by April and has suffered a trade deficit of $43 billion.

In the past Milei has directly communicated his concerns with the population, saying, “There’s no money,” and repeated himself during his inaugural speech, saying now was the time to rein in spending.

He said before it gets better, it would have to get worse, but there is a light at the end of the tunnel.

“We know that in the short term the situation will worsen, but soon we will see the fruits of our effort, having created the base for solid and sustainable growth,” Milei said.

Milei took the oath of office inside the National Congress building with outgoing President Alberto Fernández placing the ceremonial presidential sash upon him, a common South American custom.

Some of the lawmakers who attended shouted congratulations and the word, "liberty!"

Milei then broke traditional Argentine custom and addressed the public outside instead of making his inaugural speech just to lawmakers.

“Hi everyone!” Milei said, greeting the outside audience with a smile. “There is an overwhelming desire for change in Argentina and now there is no way back,” said the 53-year-old economist, confirming he would cut public spending by 15% of gross domestic product. 

The former macroeconomics professor said the country’s economy has suffered because former lawmakers “ruined our lives” with hyperinflation.

“In the last 12 years, GDP per capita fell 15% in a context in which we accumulated 5,000% inflation. As such, for more than a decade we have lived in stagflation. This is the last rough patch before starting the reconstruction of Argentina,” Milei said. “It won’t be easy; 100 years of failure aren’t undone in a day. But it begins in a day, and today is that day.”

Those in attendance reportedly waved both Argentine flags and the yellow Gadsden flag from the American Revolutionary War, featuring a snake and the words, “Don’t tread on me.” a symbol often championed by free market libertarians and patriots.

Milei shocked the world on Nov. 19 with an upset against Massa after losing the initial election round. His election was seen as a protest vote against the inflationary policies of previous administrations.

Some saw Milei’s candid approach and willingness to promise hard decisions as a sign of hope for Argentina’s future.

Milei, who has said he plans to convert to Judaism has promised to reduce government administrative bureaucracy and move the Argentine embassy in Israel from Tel Aviv to Jerusalem to demonstrate his commitment to the promised land remaining a Jewish state.

He has also shown support for Ukraine, Volodymyr Zelensky, in the country’s struggle against Russia.

The newly sworn in president cleverly used the inauguration as a meeting place for foreign diplomats and leaders, including Zelensky who made his first trip to Latin America since Russia invaded his country in February 2022.

The inauguration gave Zelensky an opportunity to meet with potential international partners from Europe and North America as it continues to recruit allies against Moscow’s invasion.

“Freedom is what unites us, Ukraine and Argentina. We truly cherish it, protect it, and stand ready to strengthen it together,” Zelensky wrote on X, the social-media platform formerly known as Twitter, after meeting with the new Argentine president. He said he also met with the presidents of Ecuador, Paraguay, and Uruguay.

To ease tensions between Moscow and Kyiv, Milei seated Zelensky close to Russia’s ambassador to Argentina, Dmitry Feoktistov, according to the presidential palace.

To ease the concerns of some of his centrist countrymen, he assured them he was not going to privatize education or health care and would not immediately loosen gun control restrictions.

Milei is a former professor of macroeconomics who has written several books and more than 50 economic papers. He has taught at Argentine universities and at schools abroad.

He also served as the chief economist for Maxima AFJP, a private equity company, served as the head economist at Estudio Broda, a financial advising company and was a financial consultant for the government at the International Center for Settlement for Investment Disputes.

The libertarian thinker also served as a financial adviser for HSBC Argentine, part of one of the largest bank chains in the world and since 2012 led a division at a national think tank, the Economic Studies at the Acordar Foundation.

In July 2021 he established the Freedom Moves Forward political coalition, which won a third of the votes in the 2021 Argentine legislative elections by securing 17% of the national vote.