Argentinian President Javier Milei Plans to Cut 70,000 Government Jobs, Calls it ‘Chainsaw and Blender’ Approach
The libertarian president reiterated his commitment to rapidly cutting state expenditures.
Argentine President Javier Milei has announced a plan to dismiss 70,000 government employees in the coming months, as part of his vision for a smaller state society.
Speaking at an event in Buenos Aires hosted by the International Economic Forum of the Americas, Mr. Milei emphasized the need for a fiscal adjustment to reduce inflation from 250 percent to single digits.
He proudly declared the elimination of public works and discretionary transfers to provinces, along with the termination of over 200,000 social welfare programs. He assured the audience that social policies were not neglected and that funding for food and schooling expenses had increased.
The Argentine government house clarified that the 70,000 figure represents government employee contracts under review, with a staged process for layoffs, starting with 20 percent by the end of the month.
Mr. Milei’s presidency began with a promise to address Argentina’s economic challenges, as millions lived in poverty when he took office.
Prior to Mr. Milei’s tenure, Argentina faced multiple sovereign debt defaults and struggled with mounting foreign debts, including loans from the IMF and China.
Mr. Milei criticized the Peronist status quo and vowed quick actions for economic recovery, despite criticisms of his approach. He emphasized the need for courage to implement necessary reforms.
Since taking office, Mr. Milei has implemented measures to counteract state interventionism, including a devaluation of the peso and reduced government spending.
Speaking at the World Economic Forum, Mr. Milei advocated for free market capitalism as a solution to poverty, receiving support from international observers like Janet Yellen and Kristalina Georgieva.
