Libertarianism, Argentina, and US National Debt

Argentine President, Javier Milei, won a clear victory over the opposition in the midterm elections, ensuring that his ambitious reform agenda will continue. Milei’s coalition, La Libertad Avanza (LLA), obtained 40.7 percent of the national vote, whereas the Peronists (Fuerza Patria) received 31.7 percent. The LLA carried 15 of 24 provinces.

Two things of note here: First, the LLA and Milei are Argentina’s closest version of America’s Libertarian Party, and… second, the two major parties only received 72% of the vote. The latter fact shows that, unlike the US, third parties actually play a role in politics. Voting is mandatory in Argentina, though not everyone does so.

Milei’s victory is rather significant. He won by a large margin and also captured the province of Buenos Aires, where he was expected to lose. The province of Buenos Aires had been a source of trouble for Milei as late as September, when his coalition lost a state election 47 percent to 34 percent against the Peronists. This triggered a wave of pessimism in the markets, a run on the peso, and a controversial, alleged bailout by the US.

Milei’s victory will enable him to uphold his vetoes of bills that threaten budget stability or bills that go against his reform agenda. This makes yet another country (see my previous blog) which understands that in order for a country to be profitable, it must reign in spending to no more than revenues. The LLA coalition will have 107 seats in the House, or 42 percent of all seats, basically making the president veto-proof, as vetoes can only be overridden by two-thirds of Congressional vote.

Though the LLA is still 20 votes short of a majority in the House, Milei and his allies will now have one-third of the Senate - exactly the same proportion as the Peronists. Again, if two parties control just two-thirds of the Senate, that means third parties have some influence.

Meanwhile, in the US, Libertarians and other miscellaneous parties have been seeking such influence for decades. Sadly, American voters continue to reject them, often citing the worn-out mantra of the “lesser of two evils.” They do so, despite the fact that year in and year out they claim they want a legitimate third party.

Newsflash! If you never vote third party you’re never going to have one. Quit voting for Coke and Pepsi, and vote for Mountain Dew or Seven-Up... just once! Show some initiative!

Milei is a mix of libertarian freedoms, via a reduction of government control and spending. The government recently signaled it wants to further deregulate the economy, open up more trade, end capital controls, and privatize state-owned enterprises. US voters and politicians, on the other hand, seem to want more of each. Few understand that the train that heads to “More-ville” rather than “Less-ville” will only end up in “Broke-ville”. Greece, Italy, and Argentina have decided to pay the piper instead of kicking the can down the road. I can only hope the US is next… and soon.

Source used: Cato Institute