MILEI’S SUCCESS STORY. What strategy has Javier Milei used to move his nation Argentina from recession to recovery? And from hyperinflation to stability since voters elected him President in 2023? He shared his strategy on January 21 at the Davos World Economic Forum.
Milei began by pointing out a false dilemma. For years many economists believed we had to choose between economic efficiency and ethical justice. Instead, efficiency and justice present “two sides of the same coin.”
If we sacrifice ethics for efficiency, both will eventually collapse. Lack of ethics will make the system unjust, and injustice will undermine the efficiency of the system. Often, globalists have “socialist policies elegantly packaged to deceive people…of good intentions. But this always led to the same catastrophic results.”
Millions died during the disasters of 1930s Soviet collectivism and 1950s Chinese Great Leap Forward. Most recently socialist Venezuela suffered a 80% collapse in GDP. Then it resorted to “a bloody narco-dictatorship whose terrorist tentacles spread across…the Americas.”
In Argentina, Milei chose not to ground recovery on a strictly efficient “utilitarian framework” Instead, he grounded it on “free enterprise capitalism” which he calls “the only just system.” Its justice comes from natural law “because it accords with the nature…common to all men.” Therefore, natural law is “unchangeable and immutable,” applying not only to all men but to all times.
See below how to pray about this
Natural law recognizes two fundamental rights—the right to the life and liberty that man was born with. Man “has the right to demand that others respect them in order to pursue his own happiness.” Such respect allows no form of aggression or coercion to deprive anyone of their natural rights. Even the state cannot take away natural rights.
The free pursuit of happiness allows a man to gain more rights. He may acquire—by merit or by gifts freely given—rights to goods, services and properties. The economy is the exchange of goods, services and properties that people have justly gained, created or discovered.
We should limit state regulation and taxation of the economy to that which is just and necessary. The “invisible hand” of a free economy works best when people pursue their own happiness and interests. Too often state intervention tries to correct so-called “market failures” and redistribute the wealth.
State intervention fails when it over-redistributes wealth from wealth-producers to non-producers. Operating outside the economy’s discipline, the state becomes the most expensive non-producer of wealth. The less wealth production, the less wealth circulates in economy. Therefore, the less jobs and the lower the standard of living.
Wealth-producers learn how to handle their wealth to produce more wealth. To compete they must learn to make the most of their resources—human, financial and technological. That strengthens the economy and makes it more efficient. Without competition, state bureaucrats have little motivation to make the most of their resources. Instead, they get bloated by constantly violating property rights of producers to their means of production.
Milei’s accomplishments
So Milei used to carry around a chain-saw to illustrate how much government cutting he needed to do. He cut out artificial barriers to entrepreneurs finding ways to make better products at lower prices. Milei’s three years of accomplishments include:
- Eradicating a fiscal deficit of 15% of GDP
- Lowering country risk by 2,500 basis points
- Reducing poverty from 57% to 27%
- Reducing inflation from 300% to 30%
In short, Milei says “we have stopped giving people fish and have started to teach them how to catch fish. And if possible, to encourage them to create their own fishing company.” That makes them fishers of men and not just fishers of wealth.
Men who respect each other’s rights learn how to employ more men to serve more men. The good and faithful servants gain more of their master’s wealth and enter more into his happiness. In this way God’s invisible hand in a free economy makes for many proverbs and parables on how to live our lives..
PRAY WITH US about Milei’s Success Story. Father God, through Jesus, You make all things new. And You keep renewing Your church so it can disciple natiohs in new ways. We thank You for the way You reach all kinds of politicians with Your solutions. So we believe the born-Catholic and recent convert to Judaism Javier Milei has come under Your influence. Keep pouring Your grace upon him and his nation.
We thank you great works you have done during his administration. Eradicating a fiscal deficit of 15% of GDP and lowering country risk by 2,500 basis points. And reducing poverty from 57% to 27% and inflation from 300% to 30%. Without You, these would have remained impossible. But with You, all things are possible. So inspire more nations by examples like these that they may prosper too. And not only become good fishers of wealth but Your fishers of men too. In Jesus’ name, amen.
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