Argentina’s Radical Plan to Shrink Government, Inspired by Elon Musk
(Based on reporting by Reuters)
A year before Elon Musk’s Department of Government Efficiency (DOGE) began cutting U.S. government jobs, Argentina was already testing a bold plan to shrink the state.
Under libertarian President Javier Milei, Argentina has slashed regulations, cut ministries, and fired thousands of public workers to fix its struggling economy.
Milei’s “chainsaw” approach, led by Deregulation Minister Federico Sturzenegger, has halved the number of ministries and reduced public sector jobs by 10%.
The goal is to make the government smaller and more efficient, which Milei and Sturzenegger believe will boost the economy.
Elon Musk has praised Argentina’s efforts, calling them “awesome” and sharing videos of Sturzenegger explaining the reforms. Musk’s DOGE is now doing something similar in the U.S., cutting jobs and costs in government departments.
Argentina’s economy has been in crisis for years, with high inflation, poverty, and debt. Milei’s reforms aim to fix these problems by reducing red tape, encouraging competition, and privatizing state-owned companies. For example, he has cut rules on rent controls, farm exports, and even how watermelons must be packaged for export.
While some Argentines support Milei’s changes, others worry about the impact on public services. Critics say the cuts are hurting the poor, with funding reduced for soup kitchens and diversity programs. However, direct payments to the poorest have increased, helping to ease public anger.
Sturzenegger, who keeps a countdown clock in his office, says the government is using its emergency powers to push through reforms quickly. He has even set up an online portal for citizens to suggest areas to deregulate, using AI to sort through thousands of ideas.
Argentina’s experiment offers lessons for the U.S., where Musk’s DOGE is facing criticism for its aggressive cuts. Both countries are trying to reduce the size of government, but their situations are very different. Argentina is recovering from a deep recession, while the U.S. economy is stronger.
Milei’s popularity remains steady, with polls showing nearly half of Argentines support him. His reforms have brought some economic growth, though much of it comes from agriculture and energy exports.
Whether Argentina’s “chainsaw” approach will work in the long term is still unclear, but it has already made waves in the global debate over the role of government.
(This summary is based on original reporting by Reuters.)