STEVE INSKEEP, HOST:
The leader of Argentina, President Javier Milei, is reportedly in high spirits as new inflation figures indicate that his aggressive cost-cutting measures are starting to take effect, although the inflation rate remains one of the highest globally. Additionally, he is excited about the triumphant return of Donald Trump to the White House and plans to travel to Florida today to extend his personal congratulations. NPR’s Carrie Kahn reports from Buenos Aires.
CARRIE KAHN, BYLINE: Even prior to Trump officially finalizing his victory, Argentine President Javier Milei was passionately active on social media, openly expressing his desire to assist in making the U.S. great again.
(SOUNDBITE OF ARCHIVED RECORDING)
PRESIDENT JAVIER MILEI: (Speaking Spanish).
KAHN: “And we know we can also count on you to make Argentina great again,” he declared, concluding with his distinctive rallying cry.
(SOUNDBITE OF ARCHIVED RECORDING)
MILEI: (Speaking Spanish).
KAHN: “Long live liberty,” he exclaimed, punctuated by an expletive. Milei, who identifies as an anarcho-capitalist, has rapidly gained popularity within international far-right factions. He is scheduled to address this week’s conservative CPAC convention at Trump’s Mar-a-Lago hotel and anticipates a personal meeting with Trump. Notably, the two leaders spoke by phone just last Tuesday. Milei’s spokesperson highlighted on the platform X that Trump referred to the Argentine president as his favorite leader, a favorable situation for Milei as Argentina navigates its substantial debt obligations with the International Monetary Fund. Many citizens resonate with this sentiment; Milei’s approval rating remains above 50%, despite significant reductions in pensions, public transportation subsidies, and the elimination of thousands of government jobs.
LEONARDO BRITO: (Speaking Spanish).
KAHN: “You got to give the guy a chance,” asserts Leonardo Brito, a 26-year-old delivery worker who admits he is feeling the economic strain. “But it hasn’t even been a full year since Milei won,” he adds. Critics argue that Milei’s cuts have been excessively severe and rapid, leading to a troubling statistic: over half of Argentines now live in poverty. Additionally, they claim that Milei has devoted an inordinate amount of time and resources traveling abroad. Today’s journey marks his 15th trip outside the country in less than a year in office.
BEN GEDAN: He really expresses a more pure ideological vision when he travels abroad.
KAHN: Ben Gedan, a representative from the Wilson Center in Washington, D.C., characterizes Milei as a committed ideologue. However, he observes that domestically, Milei has adopted a more pragmatic approach.
GEDAN: Domestically, that’s also true in his speeches. But in actual governing, he’s put together a mixed team, and he’s been willing to compromise with Congress.
KAHN: In October, the inflation rate experienced a significant decline to 2.7%. Although the annual inflation rate remains in the troubling triple digits, it has now dipped below 200% for the first time since the previous November.
BRITO: (Speaking Spanish).
KAHN: Brito, the delivery driver, conveys, “This is all part of the change. We knew it would be hard at first, but better,” he hopes, “soon.”
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How might President Milei’s approach to addressing inflation in Argentina influence economic reforms in other countries facing similar issues?
**Interview with Economist Dr. Elena Ruiz on Inflation Trends and Global Economic Impact**
**STEVE INSKEEP, HOST:** Welcome back to the show. Today, we have Dr. Elena Ruiz, a renowned economist, here to discuss the recent inflation trends both in the U.S. and internationally, particularly with the fascinating situation in Argentina under President Javier Milei. Dr. Ruiz, thank you for joining us.
**DR. ELENA RUIZ:** Thank you for having me, Steve.
**STEVE INSKEEP, HOST:** Let’s start with the current inflation situation in the U.S. The annual rate of inflation has increased in October for the first time in six months. What does this mean for the average consumer and the economy at large?
**DR. ELENA RUIZ:** Well, Steve, it’s a nuanced situation. Although we saw a slight uptick in inflation, the overall trend over the past several months has been more favorable. For the average consumer, this bump may cause some concern in the short term, especially as prices on certain goods may rise again. However, many economists believe that with the underlying economic indicators still pointing towards stabilization, we could see potential interest rate cuts in the near future, which would be beneficial for spending and borrowing.
**STEVE INSKEEP, HOST:** That sounds promising for consumers. Now, shifting gears to Argentina, President Milei seems to be in high spirits despite his country facing one of the highest inflation rates globally. Can you provide some context on what we’re seeing there and how it relates to inflation?
**DR. ELENA RUIZ:** Absolutely. President Milei’s aggressive cost-cutting measures are designed to tackle the severe inflation that has plagued Argentina for years. While the inflation rate remains extraordinarily high, these measures may signal a shift towards greater economic discipline. His alignment with Donald Trump and the backing from international far-right factions could also bolster investor confidence, but it’s essential to remember that drastic cuts to pensions and subsidies can create significant social tension.
**STEVE INSKEEP, HOST:** It’s a balancing act, for sure. Milei’s popularity appears to remain high, even amidst tough economic choices. What does that say about the political climate in Argentina?
**DR. ELENA RUIZ:** It suggests that many Argentinians are willing to support radical changes in hopes of stabilizing the economy. His approval ratings exceeding 50% indicate a desire for change and a belief that his unorthodox approaches might finally yield positive results. However, sustaining this support could be challenging if the immediate impacts of his policies hit the most vulnerable citizens hard.
**STEVE INSKEEP, HOST:** Thank you, Dr. Ruiz. It looks like both the U.S. and Argentina are navigating complex inflation landscapes, albeit in very different contexts. Your insights are always enlightening.
**DR. ELENA RUIZ:** Thank you, Steve.
**STEVE INSKEEP, HOST:** Stay with us for more discussions on how these global economic trends impact local communities right after this break.