The Latin American Report # 151

Javier Milei would do well to study recent political history
The ultra-liberal president has condemned to the street some 7,000 public sector workers, whose contracts began this year and were to be renewed as soon as 2024 begins. In Milei's worldview, all of them were awarded politically tinged contracts—the outgoing governing force, they said, usually seeks to secure certain acolytes—, without questioning the possibility that there are at least a hundred who have cleanly won their jobs. For the first quarter of next year, the government intends to go further back in the payroll of public employees, and so review hires even before 2023. Now many understand that when in the pre-electoral speech of the current president it was said that the adjustment would be paid by the State or "politics" and not by the private sector—the caste that, at the end of the day, Milei defends—, that State is not an entelechy, but a structure made up of people, by people who are the ones who end up paying for the adjustment.
A union that represents public workers has criticized in harsh terms this last decree of Milei, calling it an "aggression", and also threatening that "nobody expects us to accept even a single dismissal". In the meantime, the powerful General Confederation of Labor will coordinate a march this Wednesday in alliance with left-wing social organizations to demand the repeal of a controversial emergency decree that we have already discussed here, through which Milei ended up legislating—from the Executive—very serious, neuralgic aspects of the Argentine economic system. In the courts, the measure of the government of La Libertad Avanza is already facing a concentrated effort to declare its potential "nullity", as it is being discussed whether the situation of the country certainly applied for Milei to arrogate to himself these strong legislative powers.
If Congress does not end up blessing the also-called mega decree, Milei told the sweet—with the politician he likes—Luis Majul of LN+ that he would call for a plebiscite, which even if the result smiled on him would not be binding (I still find LN+'s journalistic exercise abhorrent because of its bias). But he, Milei, faces a risk that I do not know if he has made the effort to evaluate in recent experiences such as the Chilean one, where a president believes that the popular backing in a presidential election will be reflected in every consultation he makes in what follows. Even when he still presumably has a positive electoral inertia, the context does not seem to indicate that Milei has intact the 56% support which reflected the result of his final battle against Sergio Massa. Why? Because the concrete impact of his economic program is beginning to be felt by many who voted for him following the blind plan to punish the Peronist government—a well-earned punishment anyway—, because "anything" was better than its continuity in power.
Migrants continue on their way in caravan to the border
The umpteenth caravan of migrants that left Tapachula on Sunday heading for Greg Abbott's barbed wire fence—I know some enter through Arizona, but I like to highlight this Texas aspect for its symbolism—, continued moving through the state of Chiapas yesterday, Tuesday. All these people hope that the focus of Washington and Mexico City—as they deliberate today on what to do with the crisis—will be to support their socioeconomic reinsertion in third nations rather than to persecute and deport. For the people who venture into these chaotic caravans, which at some point usually break up, no solution involves returning to their countries of origin, although often the factor that weighs most heavily in that position is to avoid the public scorn of having failed to reach the United States. I continue to be concerned that the narrative defended by migrants about the reasons why they have left their countries does not make a solid case for applying for political asylum, which continues to tell us that other channels are demanded to address the needs of groups that do not fit within refugee policies, and, as I always say, above all to attack the causes and conditions that squeeze Latin Americans. AMLO will insist on this dimension of the problem, by reports.

"To ask for protection, that they give me political protection because I can't return to Colombia, or that they allow me to stay in a country where I can regularize my status and work and support my family", was the feeling of Norbey Díaz Ríos, a man close to 50 years old who is part of the caravan. The migrants protested when they passed through a key customs point in the municipality of Huixtla, whose police had riot gear ready. Meanwhile, in Mexico City, Mexican and U.S. officials deliberated on measures to be agreed upon by the Biden and AMLO administrations. The head of Foggy Bottom, according to this EFE report, will demand that Latin American transit countries offer legal avenues for migrants to settle there, somehow sharing the crisis. In what would be a victory for the Republicans, a concession to solve an unrelated problem such as the war in Ukraine, the White House would be considering reinstating a controversial and restrictive immigration regulation that Trump based on Title 42 of the United States Code. We will closely follow the outcome of the negotiations and analyze them in our next issue.
And this is all for our report today. I have referenced the sources dynamically in the text, and remember you can learn how and where to follow the LATAM trail news by reading my work here. Have a nice day.


Milei is not ultra anything. He is libertarian. Pushing the term ultra right wing is stupid. For some spheres Milei policies answer more to conservatism. Specially when conservative figures like Agustin Laje support his policies and ideals.
Conservativism is about being fiscally responsible, which means reducing taxes, and reducing debt from the state. It also have less intervention by the state. So liberal would be the opposite where governments take 'liberties' and take charge of many aspects away from governing. Like having state ran oil rigs, energy and other infrastructure obligations as opposed to let the private build the structure.
Milei is paradoxical opposite to trump policies. Trump introduce tariffs and taxes as opposed to Milei de-regulation and eliminating the state from commerce. Milei wanted to remove the central bank while trump pressure the federal reserve to push interest rates to his will. Milei is pushing to remove the legal tender while trump was anti-crypto.
Hello my friend. I don't connect the policies implemented by Trump with those of Milei. If anything, I have connected the media agendas of both, in the sense of advancing an irreverent, strident discourse, also full of falsehoods and manipulation.
Regarding the discussion on liberalism, we must remember that the term "liberal" in the United States has a very different connotation from how it is understood from classical theory. With that caveat, I agree with the connection you make between Milei and the conservative agenda in the US. He, however, has had to backtrack along the way on his narrative, applying prescriptions that are not the ones he communicated in the campaign, although we don't know how sincere he was then. For example, on the tax issue, his discourse was very critical of taxes, yet he has strongly appealed to them, still for practical and objective reasons. Thanks for this sound feedback.
I don't think there has been any counter action to his campaign. He said that the state most pay as opposed to the people and the market.
He has done so by reducing the size of the state. He has already remove legal tender and with that disappeared the 'blue' dollar and deregulated the market including the Sira (or government priviledge on exports).
The problem is thinking government employees represent the market and not the state. Everything that is paid using taxes IS the state.
Of course the media will highlight taxes on certain areas and dismiss taxes in others. Please review the tariff, taxes and priviledge he is removing. Is easy to simplify and manufacture arguments instead of actually reviewing the 300 measures implemented on the decree (and the 300 new measures he announced).
So copying media narrative spread the misinformation as calling a libertarian 'ultra-liberal'. Btw both US and Latin America, liberal equates with progressive or commonly known as 'progre' which desire the state to increase presence on social and economic matters.
Is Milei still talking about overthrowing the central bank? Or about dollarizing the economy? Are you saying that the dollar is no longer traded on the black market there? I don't quite understand. Doesn't Javier Milei recognize himself as a liberal?
About the measures, I read them, and in fact I said in a previous post that I share a good part of this deregulatory crusade. I would like to see a good part of it implemented here. I put the spotlight, however, on those points that I consider debatable.
On the subject of the State, I come back to the fact that, as you present it, the specific people that make it up are not seen. Not people from CFK, Massa, or the very Milei. Just people.
Finally, I do not copy narratives, I have my own vision, which may be debatable, as well as yours. We must learn to discuss without pretending to have the whole truth. I defend mine but it is entirely subject to judgment, always with respect.
Exactly, right now, all the cuevas are no longer being prosecuted by law enforcement. There is no illegal dollar, so you can get US bills on mercado libre and get it delivered to your door.
The central bank is being closed down, it needs to be disassembled and it can't be closed down by decree, but it can be prepared to be closed down.
Milei recognize himself as a classical Anarcho capitalist minarquist, who believe the state should only provide security and justice. That said he acknowledge, he has to work with others and not everything he wishes is possible under the correct environment.
Finally, your article copy labels presented by the international media. Which doesn't make sense, the term ultra-right wing, yet there is never an ultra-left wing, is sort of the false labels media has come up with. So when people use them, they are copying a word manufactured by media hence reinforcing their mistake. The media doesn't acknowledge libertarians or Anarcho capitalist or minarquist. Which is what Milei has talk about over and over, same with politicians like Ron Paul for example.
The term here is not so important, but the content itself. You put too much focus there. I even usually said "the so-called". Let's go to see the impact of the thing, of the policies that are being advanced.
When I asked if there was no more black market associated with the dollar, I did not do so ignoring the liberalization that took place in that sense, but thinking about the fact that there is a notable exchange gap between the scarce dollar that can be acquired at the official price and the one that is traded outside the state network.
There is no official price anymore. Milei always said, there are a lot of dollars, just not at the official rate. Which btw was always fake.
It really was a hidden tax by the government that took the people's dollar at half or 1/3rd of the real price. This caused huge damage on real state transactions which the government was the winner.
On the topic of government employees, Argentina is the place with most government employees in Latin America where 7 out of 10 workers are government employees. Milei clearly said 'no hay plata'.
He also promised shutting down all ministries but 9. Reducing cost include firing people, and stop the bleeding of money from the state. A president had limited power and between the ideal and what's possible.
It would be ideal to check post by post, but that will cost even more money to hire the hours reviewing each situation. But most people don't understand the actual issue which is money. No hay plata. Not even to review your contract of thousands of employees.
The flip side is that he will also deregulate the employment rules which will make it easier to hire and fire employees. This will accelerate job opportunities for people.
It's fine to take care of "the big economy", but my point here is to look at what's next from now on for those laid off, with no cushion (Milei says it's time to compete, but competition is never clean, because it was born dirty and unfair).
I disagree with your point of view about the flip side of the measure, because it's taken from the side of those with the capital, of those that are very safe from the burdens of the adjustment, not from the one made of vulnerable people. So those who have "freedom" there are the big businessman, freedom for fast hiring, and for fast firing too. Anyway I respect that way of thinking around this topic.
Now, going back to the measure itself taken by Milei, it arises from a politically tainted, highly discriminatory settling of scores insofar as it is understood that all those hired in the last year are acolytes of Peronism. It is a matter of being fair to each individual. This issue of inflated payrolls in the public sector is a fair one to discuss. We already have that debate here in Cuba, but again, we need to be fair.
Actually we don't need to be fair. Fair is a term that socialists use to mess up the market. 'Fair price' or precio justo was implemented in Chile to subsidize the price of gas, this went against competition and increase government spending which is exactly what put Argentina there.
There is also a narrative that ignore the reality of life. Just because people get fired, they don't just go out and starve to death and die. If people are talented as the argument said, they will be hired by the market.
But if they are lovers or cousins of some politician or middle manager, they won't be paid a salary for something of relevance. That seems 'fair enough' to me.
Of course like most communist think the market is built by big business but you can go to any economy in Latin America and find most people employed are by small to medium businesses.
You just have to go to any city center and see most stores are self owned or built by a small fund. Then it's the professionals that also belong to the small business market, people like dentists, yoga teachers, party DJ's, architect firms, lawyer offices.
So the false narrative that big business are the one running the country is actually just the state being intimidated by the relative economic independence of the private sector. Most communist governments want to control the market to their will either by colluding with big business (fascism) or by right out taking them out under the so called 'neoliberalism' (which is also a made up term and doesn't exist).
So this narrative either of big business and 'fairness' is completely false and one sided. Instead the base thinking of Keynesianism and government pushing narratives to the people that is their right to have a job, when in reality people should have access to the job market, but not a guaranteed to get one. Is the same right as saying, people should be free to marry, that is not a guaranteed provided by the state, and have the state give you a wife.
Let's take an example. Citizen A has a two-year-old contract obtained thanks to a political arrangement. Citizen B got a job cleanly in September. How do you see the fairness of Milei's policy that we are discussing here? We have worldviews that hierarchize society differently, just that.
I think they both should compete on the market. However if it's not possible for some legal reason, the one with less protection should leave.
In the private sector is called a laid off which means cutting down staff by 20% 30% or X%. The criteria used to select who stays, usually is irrelevant.
I don't see why just because it's the government, becomes relevant all of a sudden.
Let me try a different perspective, you spend 100 USD a month on food. You have some financial problems and you need to cut that budget in half. Which food item is fair to stop buying?
I don't deny the need to lay people off. Here in Cuba we also demand such a process. But for me, the criteria used to define who stays and who doesn't is important. Whatever the sector, public or private. What I think should have been done to avoid injustice was to review the entire state payroll after deciding how many positions are really needed, and leave the most suitable people to fill them. That's all.
Ok that is your opinion, personally I don't care who stays out doesn't. And I think people shouldn't care, most of the government employees are paper pushers, that's why is called bureaucracy. Basically made up jobs that don't achieve anything special.
When you want the government to get out of areas that doesn't concern with governing like science, culture, women institute, and made up ministries, there is no 'good worker'. The whole ministry is useless including his position.
What should be done is a cost with no good result. You don't want to spend money on the way to laid off people. It doesn't make sense. Just like i said about cutting down your food budget by half. If you are going to spend 30 dollars to see which 50 dollars you will no longer buy, you certainly fail at cutting cost.
This is a good video about how leftist look at Milei
At the moment there is not much to discuss, except that it is assumed as something natural for a politician to say things during a campaign, to explicitly rant about another candidate, and the next day he/she disavows it. For me it is a nonsense that can't be naturalized.
I stopped the video around minute 12, and I realized, by the way, that the liberal influencer often has to agree with his opponent, as the arguments he seeks to counter him are highly debatable. In truth, I find it weak, very typical of the cheapness of contemporary debate.
I don't share anyway many parts of the narrative coming out from Barroso. It's like a friend who played me a video of Maduro discussing what Milei is doing, when I have nothing to do with his reasoning on the matter. I still give Milei the benefit of the doubt. All I have done in this post is state a fact, and that is that he released 7000 guys into the street, but more than that, I have put the spotlight on the fact that he did it following a politically flawed criteria.
He isn't done, and hope he release another 20 thousand the following months. The bureaucracy in Argentina is huge, they should have a 'real job' on 'real companies'. The left wing make it sound like he just condemn them to death and starvation. When the past government was giving out jobs to hold unemployment down. This is just adding a balance. The average county only have 3 out 10 workers in the public sector. That should be the goal.
Yay! 🤗
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