Argentina's economy was collapsing: • Inflation: 200% annually • 15+ years of fiscal deficits • Peso had lost 99% of it's value Enter Javier Milei. Achieved fiscal surplus and reduced inflation by 90% in >365 days His model now influences Elon's decisions at DOGE Thread🧵

When Milei took office in December, Argentina was in free fall: • Inflation at 54% in December (17,000% annualized) • 57% poverty rate • $45 billion debt to the IMF • Over 40% of Argentines were living below the poverty line. Javier had the perfect plan to overcome it

In less than a year: Monthly inflation went from 25% to 2.7%. Poverty decreased by 13pp. After declining at the start of 2024, GDP grew 3.9% QoQ in the third quarter. All of this is tied together by a common denominator: Decentralization.

There are two major ways in which decisions can be made. 1. Centralized, where an individual/entity is given all information available for them to decide. In this case, we are talking about setting prices. Milei finds this deeply flawed and turns to another one: Decentralized.

Prices are aggregators of information. When a buy/sell signal is sent, prices incorporate this new information. That way, a free-market economy considers information scattered throughout society. And people continuously adjust their behavior according to new market conditions.

This is the core tenet of Milei's philosophy. Each time someone interferes in the market process, they blur the signal sent, and prices cannot adjust appropriately. That is why Milei is getting the Government out of the way.

Each time Milei eliminates a regulation or public entity, he gets rid of intervention in the market system. And every time this happens, Javier eliminates the cause of blurriness in the market signal. It's a purification process.

Milei pairs his efforts toward decentralization with reducing the government's budget. He eliminated over 50% of ministries and halted public infrastructure. In the long run, the market does a better job at allocating vast amounts of capital.

One of the first things he did was to pass a 238-article package, called Ley Bases. This entailed 4 major things: -Milei got 1 year of extraordinary powers (not absolute). -RIGI, a program offering tax incentives to strategic, large, investments. -Privatizations. -Labor reform.

Another of his first actions was to eliminate a law that greatly interfered with the rental market: Ley Alquileres. 8 months after doing so, rental supply increased by 195% and prices dropped by over 20%.

Milei is opening Argentina's economy to foreign competition. He simplified the process of importing goods and eliminated a tax that made purchases in foreign currency more expensive. Prices of household appliances, cell phones, and air conditioners, dropped up to 30%.

Milei's policy of "Cielos Abiertos" was aimed at liberating air travel. He flexibilized entrances of foreign airlines, reduced administrative processes, and eliminated the exclusivity to some routes that a national company had. December registered a record in air travelers.

"Under Milei’s leadership, Argentina turned a $7.94B trade deficit in 2023 into a record-smashing $18-19B surplus in 2024, surpassing the previous high of $16.89B in 2009" With a long history of deficits, this is beyond extraordinary.

And they aren't slowing down. Federico is one of the government's greatest vocalists and was sought by Elon's DOGE team for advice on deregulation. The team is actively working on increasing Argentina's economic freedom. https://t.co/5x4on6smBP

Milei's reforms are about eliminating intervention. He aims to remove annoyances in transactions and minimize friction. Javier is delegating the decision-making process to the market and freeing up capital.

Correct delegation is an incredible value-unlocker. And that is precisely what Athena does. Athena connects you with the highest-quality Executive Assistants so that you can focus on what you need to focus. https://t.co/GoHXr4Vpga

If you found this thread valuable, feel free to share! You can follow me at @swaaanson for more posts about entrepreneurship and delegation.

yes