La cares for Milei divides the world more and moreArgentina. The president, as soon as he took office, immediately devalued the peso, leading to a surge in inflation and an exchange rate with the dollar that was becoming more inaccessible day by day for the lower classes. They left immediately the protests, however immediately quelled by repressive measures which led the police forces to literally guard the streets of the country, in a rather sinister climate which reminded some of the authoritarian regimes of the past.
In all of this, by decree and therefore without going through Parliament, where Milei does not have a majority, the president launched the first, much discussed reforms: limitation of the right to strike, plan of privatizations of state-owned enterprises e labor reform. To deal with the discontent and the objective difficulty for millions of Argentinians in paying basic expenses, such as food, rent, utilities, Milei has also launched a curious formula, explained on week between Christmas and New Year, when the decree comes into force, they will be able to sign contracts, including for example the rental one, agreeing how form of payment any type of currency, even Bitcoin, or even in exchange for kilograms of meat or liters of milk.
The details of the Milei decree
“The debtor will have to deliver the quantity of food corresponding to the value of the currency chosen, even if this is not in legal use in the Argentine Republic. Unless obviously contractual agreements to the contrary”, Minister Mondino clarified on the social network once called Twitter. Controversy and irony from citizens immediately erupted on social networks:
"IS a return to the Middle Ages, we will end up paying taxes with chickens", is the tenor of several comments on the news confirmed by Mondino, who before becoming minister was a manager of banks and private companies, therefore according to the narrative chosen by Milei she has all the necessary background to lead a "revolution" that the Argentine president did not hesitate to compare, in relation to the effects on his country, to the fall of the Berlin Wall. The curious initiative actually goes in the direction of one total liberalization of the economy: anything but dollarisation, everything is accepted, from cryptocurrencies to the exchange of food, obviously passing through the euro, which is starting to spread more thanks to tourism, and the yuan, which has already been chosen by Argentine companies for a few months to get paid for products exported to China.
The social problems of economic liberalization
However, total liberalization, while on the one hand it can help the economy to get out of trouble, creates doubts social protection issues: for example, the opposition and tenants' associations legitimately complain, the Milei reform does not provide for a minimum term for the rental contract, to protect the inhabitant. This means that contracts lasting a few weeks or even a few days can be signed, renewed from time to time but with the possibility in the meantime of evict the tenant.
The decree comes into force before the end of the year, less than three weeks after taking office. Milei is not wasting time, but it is not yet clear whether his shock therapy will somehow shake Argentina, or whether he will instead sink even further.
