When democracy can harm a country.

First of all, since I know the title is controversial, I'll clarify. At no point do I mean to imply that democracy isn't the way for countries. This is a purely structural and technical analysis.
Let's get down to business. Yesterday, the midterm elections were held in Argentina. Forgive me, Argentinians, if I don't fully understand how their legislative system works. The point is that the current president, Javier Milei, achieved a victory that strengthens his hold on power and will allow him to continue his liberal agenda.

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The country's stock markets quickly began to rise sharply, the risk premium fell, and the peso strengthened. Up to this point, everything might seem normal, but the reality is a little different. I'll try to summarize.
Since Milei came to power, the Argentine economy has improved overall, and inflation has dropped significantly, although it remains very high. The exchange rate seemed under control, and the risk premium was falling. The agreements with the IMF were going in the right direction. But a few months ago, there were regional elections where the current president's party didn't do very well, and then everything changed.
The house of cards seemed to be collapsing, and the American administration came to the rescue without much success.
The current economy is largely driven by expectations, and when these aren't met, reality can deteriorate rapidly. People vote based on their own interests, and that's how it should be. But sometimes the set of interests doesn't represent what's in the interest of the whole.
Perhaps that is the greatest paradox of democracy, and it has become very visible here.

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