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Something remarkable is happening on the southern tip of the Western hemisphere. In a mere 18 months, Argentinian President Javier Milei has turned one of the world’s most miserable countries into one of the world’s fastest-growing economies. “Instead of talking about growth at Chinese rates, the world will soon be talking about growth at Argentine rates,” Milei boasted in April.

Milei’s background as an economist may skew his perception of how often “the world” talks about macroeconomic growth, but his point stands nevertheless. For decades, China has claimed that its statist policies have yielded 5% annual economic growth (although no one knows how real the numbers are).

But Milei achieved even higher growth through the opposite approach — by unshackling the private sector.

Argentina’s Remarkable Turnaround

The eccentric economist with hardline libertarian views rose to power at one of Argentina’s darkest moments. In November 2023, Argentina suffered from runaway inflation (211.4% over a year, and 25% monthly). The poverty rate stood at 41.7% of the population, despite a socialist government spending itself bankrupt — with a deficit equal to more than 4% of GDP. Its bank-lending rate was nearly 100%, and its real economic growth was a sickly 1.5% per year, leading it to top Hanke’s 2023 Misery Index as the most miserable country in the world.

By mid-2025, Argentina’s inflation rate stood at an annual 43.5%, with a monthly rise of only 1.5% in May (while still intolerably high by American standards, this represents a reduction in inflation no one thought possible for Argentina). After rising sharply when Milei first implemented reforms, the poverty rate has now fallen to 38.1%. Most surprising of all, Argentina’s economy has grown 7.7% since the second quarter of 2024, increasing a whopping 1.9% in April alone.

Economists marvelling at Argentina’s economic about-face can find no better word to describe it than “miracle.” Such usage is too strong, since it dilutes a potent word that should be reserved for actual miracles, such as stopping storms with a word, casting out demons, and raising the dead (see Luke 8). But the recovery is certainly remarkable.

Such a dramatic recovery was only made possible through radical reforms. In one month, Milei balanced the bloated budget, cutting it by 30% and eliminating half of the government’s cabinet departments. He dismantled artificial controls on foreign exchange and reined in the money supply.

In perhaps the most remarkable victory, Milei repealed Argentina’s rent-control law. As a result, the supply of rental housing tripled in the capital city, Buenos Aires, and the median price fell by 10%. Yes, you read that correctly. After Milei repealed a law designed to keep rental prices low, rental prices fell.

Argentina Versus Its Critics

Last year, Milei set forth his ideology (self-described as “anarcho-capitalist”) in a fiery address before the World Economic Forum. While a bit extreme at times, Milei tempers a world where experts tend toward the other extreme of central planning and socialism.

For instance, Milei repudiated the very concept of “social justice,” arguing that it “is not just, and it doesn’t contribute to general well-being.” He endorsed economic growth, not redistribution. “Those who promote social justice start with the idea that the whole economy is a pie that can be shared differently. But that pie is not a given.” Milei concluded that “free-enterprise capitalism is not just the only possible system to end world poverty” but the “only morally desirable” way to do so.

Practically speaking, Milei communicated his message to Argentinians by speaking plainly to them about their country’s dire economic circumstances. “‘There is no money,’ Milei repeated relentlessly, and Argentines understood,” wrote Emmanuel Rincon. “On his inauguration day, they cheered a leader who, instead of promising the state would solve all their problems, vowed to get it out of their way. He urged citizens to tighten their belts and save resources to rebuild the nation.”

Milei’s agenda faced opposition from labor unions, activist groups, and even economists. Days before the election, more than 100 economists signed a letter published by The Guardian, a UK-based paper, warning that Milei would bring further devastation to Argentina. Despite contrary evidence, some economists are still skeptical that Milei’s market reliance can yield the promised growth.

Argentina, Economics and Scripture

A biblical view of human nature as inherently limited should caution observers against placing too much faith in Milei’s free-market reforms. Argentina’s economic situation remains fragile, and Milei still has to contend with high inflation and high poverty — and he has not yet delivered some key campaign promises as elections near.

But, if we rule out perfection as an unattainable standard, Milei’s accomplishments glow all the more brightly. In a matter of months, he has proven that free markets can bring prosperity even to a culture steeped in socialism. In 1900, Argentina was one of the richest countries in the world. But a socialist system erected in the 1940s steadily drove the country into the ground by crushing entrepreneurial endeavours. Given Argentina’s long history of socialism, it’s almost surprising that the nation turned so readily to Milei’s radical reforms.

A biblical worldview encourages governing officials to lead their countries toward economic prosperity. At creation, God blessed mankind with a mandate to fill the earth with humans bearing his image, subdue creation through productive work, and rule over it through the orderly application of authority (Genesis 1:28). This mandate, later reaffirmed repeatedly throughout the epochs of Scripture, justifies temporal governments to establish order and justice, and to promote economic prosperity and population growth.

In contrast to the oppression and corruption that often accompany the sinful exercise of power, “this is gain for a land in every way: a king committed to cultivated fields” (Ecclesiastes 5:9).

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Republished with thanks to The Washington Stand. Image courtesy of Unsplash.