Javier Milei and the Fourth Theorem of Government

Back in 2017, I created my Fourth Theorem of Government in hopes of convincing timid Republicans that it would be politically beneficial to reduce the burden of government.

My example was Ronald Reagan, who did things that seemed politically unpopular, such as reducing the spending burden and pushing for tight money to bring down inflation.

However, those were among the policies that triggered an economic renaissance and Reagan then enjoyed a 49-state landslide when he ran for reelection in 1984 (even bigger than his 1980 landslide).

Today, let’s consider a new example of my Theorem.

Javier Milei was elected president of Argentina in late 2023 because he promised an agenda of free markets and small government would solve his nation’s severe economic problems.

And he has been delivering, slashing spending, balancing budgets, bringing down inflation, restoring growth, lowering poverty, dismantling red tape, and rejuvenating financial markets.

Do voters appreciate what he’s done? Well, there were important local elections yesterday in Argentina. This Reuters report by Eliana Raszewski suggests the answer is yes.

Here are some excerpts.

Argentine President Javier Milei’s government received a show of support on Sunday as candidates he has endorsed took the lead in a legislative election in the city of Buenos Aires. With over 99% of polling stations counted, Milei’s list of candidates led by his spokesperson Manuel Adorni was leading the results for the local legislature… Sunday’s election…was seen as the first important electoral test for Milei, who took office in late 2023. “It wasn’t simply a local election,” Adorni said on stage. “It was an election between two models … The model of the political class, the model of a privileged few, and the model of freedom. And today, freedom won – once again.” Milei’s administration had sought to frame Sunday’s local election as a referendum on his government’s national economic achievements… The outcome in Buenos Aires is considered an important step and indicator leading up to the national midterm elections in October.

As illustrated by these headlines, other media outlets also reported on the victory for Mileinomics.

This certainly seems like votes appreciate what Milei is doing to lift the yoke of government off the economy.

But let me add even more evidence. There were also some regional elections earlier this month. They didn’t receive as much attention, so I didn’t see any English-language reports, but here are some excerpts from a Google-translated report by Facundo Chaves.

…the climate of celebrations in the Government for the results of the election Sunday was given by Javier Milei. “Long live La Libertad, Carajo,” he launched from social networks… It was a day in which the Casa Rosada risked nothing, but it reaped its own electoral successes and those of allies. There were four provinces with governors who are in tune with the ruling party. Zdero, Gustavo Sáenz from Salta, Carlos Sadir (UCR) from Jujuy and Claudio Poggi revalidated their efforts at the polls. At the same time, the left, mainly the Workers’ Party, which emerged as a rising phenomenon during Kirchnerism, was reduced to percentages below 2%. …Peronism, especially in its Kirchnerist variant, suffered a devastating day: it lost in Chaco with its most competitive candidate… “The only national political space that managed to have a good presence in the elections was La Libertad Avanza…,” said the head of the consulting firm Aresco.

The bottom line is that everything in Argentina is going great, both economically and politically.

To be sure, more needs to be accomplished, which is why the mid-term elections, which take place in October, will be the real test.

For those of us who want Argentina to once again be one of the world’s richest nations, let’s hope Milei’s libertarianism remains politically popular (we already know it will be economically successful).

P.S. I also appreciate that Milei has exposed the stupidity of left-wing economists.

P.P.S. If Argentina can elect someone like Milei, then surely America can elect another Reagan!

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Image credit: World Economic Forum | CC BY-NC-SA 2.0.