Argentina's President Milei Slashes Government Ministries, Workforce, and Regulations in a Bid to Remake the Country in Trump's Image

Since assuming office in December 2023, President Javier Milei has implemented a series of measures aimed at reducing the size and scope of Argentina's government. These initiatives are rooted in his libertarian philosophy, emphasizing minimal state intervention and fiscal conservatism. Trump and Musk appear ready to attempt similar measures in the U.S.

President Javier Milei's administration has undertaken a series of measures to reduce the size and scope of Argentina's government since he took office in December 2023. These initiatives are rooted in his libertarian philosophy, which emphasizes minimal state intervention and fiscal conservatism. Trump and Musk appear ready to attempt similar measures in the U.S.

Reduction of Government Ministries

One of Milei's first actions was to streamline the executive branch by cutting the number of ministries from 24 to 8. This reorganization involved eliminating or merging several key ministries, such as Education, Social Development, Women, Genders and Diversity, and Health. The move was part of his broader strategy to reduce government bureaucracy and public spending.

Public Sector Workforce Downsizing

In a move to reduce government spending, Milei's administration began dismissing thousands of public sector employees. By July 2024, approximately 25,000 government workers had been laid off, with an additional 2,500 to 5,000 contracts not renewed by the end of June 2024. The administration targeted positions deemed redundant or non-essential, aiming to eliminate inefficiencies within the public sector.

Deregulation and Economic Reforms

Milei issued Decree 70/2023, a comprehensive directive comprising 366 articles designed to deregulate various sectors of the economy. The decree made significant changes, such as modifying labor laws to reduce compensation for terminated employees, allowing workers to choose their healthcare providers, and abolishing rent control regulations. It also transformed state-owned enterprises into joint-stock companies, subjecting them to the same risks as private entities, including the possibility of bankruptcy.

Fiscal Austerity Measures

To address Argentina's chronic fiscal deficit, Milei implemented stringent austerity measures. These included substantial cuts to public spending, particularly in areas like education, infrastructure, and social development. By October 2024, these efforts had resulted in a 30% reduction in the federal budget, contributing to the country's first fiscal surplus in over a decade.

Privatization Initiatives

The Milei administration pursued the privatization of state-owned enterprises to further reduce government involvement in the economy. Notably, plans were set in motion to privatize Aerolíneas Argentinas, the national airline, and Intercargo, a state-owned airport services company. These initiatives aimed to decrease public expenditure and promote competition within the aviation sector.

Through these comprehensive reforms, President Milei has significantly downsized Argentina's government, aligning with his vision of a leaner state apparatus and a more market-driven economy. Is the U.S. next? Today on X, Vivek Ramaswamy, Leader of D.O.G.E, said, “We’re not bringing a chisel, we’re bringing a chainsaw.”