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Trump Admin Responds to Milei’s Failed Libertarian Policies With a US Taxpayer Bailout for Argentina
"Milei was already gifted a $42 billion lifeline from the US-controlled IMF and the World Bank," said one economics writer, "but even that was not enough to stabilize Milei's crazy Austrian School experiment."
Sep 23, 2025
In his first meeting with a foreign head of state after being reelected president last year, Donald Trump welcomed Argentina's far-right libertarian President Javier Milei to Mar-a-Lago.
At a lavish gala, Argentina's president slathered his host with compliments, describing Trump's return to office as the "greatest political comeback in history."
Before a crowd of onlookers, Trump would return the favor, telling Milei, "The job you’ve done is incredible. Make Argentina Great Again, you know, MAGA. He’s a MAGA person.”
On Monday, less than a year later, Milei arrived in New York for this week's meeting of the United Nations General Assembly, begging for help as Argentina's economy continues its freefall and reels from nearly two years of his radical economic austerity program.
Milei's fealty to Trump bore fruit. US Treasury Secretary Scott Bessent promised that the nation's financial department "stands ready to do what is needed within its mandate to support Argentina."
In what he described as an effort to tame Argentina's runaway inflation, Milei, who has described himself as an "anarcho capitalist," has spent the time since he was elected president in 2023 instituting a brutal regime of what has been referred to as economic "shock therapy."
His agenda has centered on taking a "chainsaw" to government institutions and worker protections: slashing energy and transportation subsidies, halting public infrastructure projects, declaring war on labor unions, freezing wage and pension increases, and firing tens of thousands of government employees.
The result was predictable: By February 2025, the country had begun to rapidly deindustrialize, unemployment was soaring, and more than half of Argentinians lived in poverty.
However, this did not stop Trump from modeling his economic agenda, often explicitly, after Milei's—most notably through the exploits of the chainsaw-brandishing billionaire Elon Musk's Department of Government Efficiency (DOGE), which he used to lay waste to the administrative state. Trump, meanwhile, has signed legislation gutting social services like Medicaid and food assistance, busted public unions, and canceled numerous green energy and infrastructure contracts.
The result has likewise been a slump in economic activity, culminating in unemployment numbers critics say the administration has been desperate to bury.
The US president has already intervened once to help soften Argentina's landing. As El País notes:
Thanks to Trump’s political support, the government agreed to a $20 billion bailout with the International Monetary Fund last April—to which the country still owes another $40 billion—and achieved a measure of calm, but it lasted barely three months.
Now, with Milei facing mass street protests against his budget cut proposals, a hostile legislature that routinely vetoes his agenda, and a weakening peso in the face of continued uncertainty, he has turned to the US for another bailout, which the US hopes will help ease the country's economic woes enough to stave off a thrashing for his party in the country's general legislative elections on October 26.
Referring to Argentina as a "systemically important US ally in Latin America," Bessent said that "all options for stabilization are on the table." This, he said, "may include, but [is] not limited to, swap lines, direct currency purchases, and purchases of US dollar-denominated government debt from Treasury’s Exchange Stabilization Fund."
Notably, Bessent continued to praise Milei's "support for fiscal discipline and pro-growth reforms." Despite its catastrophic effects, he described Milei's chainsaw agenda as "necessary to break Argentina’s long history of decline."
US Sen. Elizabeth Warren (D-Mass.) denounced the bailout as another favor from Trump to one of his political allies.
"First, Trump made us pay higher coffee and beef prices to support a convicted coup-plotter in Brazil," she said, referring to Trump's attempt to use harsh tariffs to pressure the Brazilian government into dropping charges against Jair Bolsonaro, who was ultimately convicted last week of attempting to overthrow the government. "Now, he wants American taxpayers to bail out his friend Milei in Argentina."
(Video: The Geopolitical Economy Report)
But as Benjamin Norton of the Geopolitical Economy Report argues, the motivation goes deeper than simply helping out a friend. It is an effort to save the reputation of "actually existing libertarianism" and the fortunes of US investors who've cast their lot with him.
"Milei was already gifted a $42 billion lifeline from the US-controlled IMF and the World Bank (after Argentina already owed more debt to the IMF than any other country), but even that was not enough to stabilize Milei's crazy Austrian School experiment," Norton said. "The US government is doing this not only to prop up one of its most loyal puppets in Latin America, but also in order to benefit wealthy US investors who hold Argentine stocks and bonds, and US corporations that want Argentina's lithium."
With Trump having modeled his oligarch-friendly economic agenda on Milei's, journalist Jacob Silverman—author of the forthcoming book Gilded Rage: Elon Musk and the Radicalization of Silicon Valley—argued that allowing the libertarian radical to twist in the wind is not an option for Trump.
"Javier Milei can't be allowed to fail," Silverman said, "because MAGA leaders and the tech right have propped him up as a true libertarian fighting the globalists and 'doing what needs to be done': Immiserating his people on behalf of private capital."
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How to Avoid Trade Wars—and World War III
Under the influence of the neocons, Democrats and Republicans alike have marched America into one disaster after another, in a vain effort to defy the economic tides by which all great powers rise and fall. Trump and his team are no exception.
Apr 28, 2025
Not a day goes by without a new shock to Americans and our neighbors around the world from the Trump administration. On April 22nd, the International Monetary Fund (IMF) downgraded its forecasts for global growth in 2025, from 3.3% to 2.8%, and warned that no country will feel the pain more than the United States. Trump’s policies are expected to drag U.S. growth down from 2.7% to 1.8%.
It’s now clear to the whole world that China is the main target of Trump’s trade wars. The U.S. has slapped massive tariffs—up to 245%—on Chinese goods. China hit back with 125% tariffs of its own and refuses even to negotiate until U.S. tariffs are lifted.
Ever since President Obama announced a U.S. “pivot to Asia” in 2011, both U.S. political parties have seen China as the main global competitor, or even as a target for U.S. military force. China is now encircled by a staggering 100,000 U.S. military personnel in Japan, South Korea and Guam (plus 73,000 in Hawaii and 415,000 on the U.S. West coast) and enough nuclear and conventional weapons to completely destroy China, and the rest of us along with it.
To put the trade war between the U.S. and China in context, we need to take a step back and look at their relative economic strength and international trading relations with other countries. There are two ways to measure a country’s economy: nominal GDP (based only on currency exchange rates) and “purchasing power parity” (PPP), which adjusts for the real cost of goods and services. PPP is now the preferred method for economists at the IMF and OECD.
If the U.S. keeps trying to bully its way back to the top, we could all lose everything.
Measured by PPP, China overtook the U.S. as the largest economy in the world in 2016. Today, its economy is 33% larger than America’s—$40.7 trillion compared to $30.5 trillion.
And China isn’t alone. The U.S. is just 14.7% of the world economy, while China is 19.7%. The EU makes up another 14.1%, while India, Russia, Brazil, Japan, and the rest of the world account for the other 51.5%. The world is now multipolar, whether Washington likes it or not.
So when Malaysia’s trade minister Tengku Zafrul Aziz was asked whether he’d side with China or the U.S., his answer was clear: "We can’t choose—and we won’t." Trump would like to adopt President Bush’s “You’re either with us or with the terrorists” posture, but that makes no sense when China and the U.S. together account for only 34% of the global economy.
China saw this coming. As a result of Trump’s trade war with China during his first term in office, it turned to new markets across Asia, Africa, and Latin America through its Belt and Road Initiative. Southeast Asia is now China’s biggest export market. It no longer depends on American soybeans—it grows more of its own and buys most of the rest from Brazil, cutting the U.S. share of that market by half.
Meanwhile, many Americans cling to the idea that military power makes up for shrinking economic clout. Yes, the U.S. outspends the next ten militaries combined—but it hasn’t won a major war since 1945. From Vietnam to Iraq to Afghanistan, the U.S. has spent trillions, killed millions, and suffered humiliating defeats.
Today in Ukraine, Russia is grinding down U.S.-backed forces in a brutal war of attrition, producing more shells than the U.S. and its allies can at a fraction of our cost. The bloated, for-profit U.S. arms industry can’t keep up, and our trillion dollar military budget is crowding out new investments in education, healthcare, and civilian infrastructure on which our economic future depends.
None of this should be a surprise. Historian Paul Kennedy saw it coming in his 1987 classic The Rise and Fall of the Great Powers. Every dominant empire, from Spain to Britain to Russia, eventually confronted relative decline as the tides of economic history moved on and it had to find a new place in a world it no longer dominated. Military overextension and overspending always accelerated the fall.
“It has been a common dilemma facing previous ‘number one’ countries that even as their relative economic strength is ebbing, the growing foreign challenges to their position have compelled them to allocate more and more of their resources into the military sector, which in turn squeezes out productive investment…,” Kennedy wrote.
He found that no society remains permanently ahead of all others, but that the loss of empire is not the end of the road for former great powers, who can often find new, prosperous positions in a world they no longer dominate. Even the total destruction suffered by Germany and Japan in the Second World War, which ended their imperial ambitions, was also a new beginning, as they turned their considerable skills and resources from weapons development to peaceful civilian production, and soon produced the best cars and consumer electronics in the world.
Paul Kennedy reminded Americans that the decline in U.S. leadership “is relative not absolute, and is therefore perfectly natural; and that the only serious threat to the real interests of the United States can come from a failure to adjust sensibly to the newer world order…”
And that is exactly how our leaders have failed us. Instead of judiciously adapting to America’s relative decline and carving out a new place for the United States in the emerging multipolar world, they doubled down—on wars, on threats, on the fantasy of endless dominance. Under the influence of the neocons, Democrats and Republicans alike have marched America into one disaster after another, in a vain effort to defy the economic tides by which all great powers rise and fall.
Since 1987, against all the historical evidence, seven U.S. presidents, Democrats and Republicans, have blindly subscribed to the simplistic notion peddled by the neocons that the United States can halt or reverse the tides of economic history by the threat and use of military force.
Trump and his team are no exception. They know the old policies have failed. They know radically different policies are needed. Yet they keep playing from the same broken record—economic coercion, threats, wars, proxy wars, and now genocide—violating international law and exhausting the goodwill of our friends and neighbors around the world.
The stakes couldn’t be higher. It took the two most deadly and destructive wars in human history to put an end to the British Empire and the age of European colonialism. In a nuclear-armed world, another great-power war wouldn’t just be catastrophic—it would very likely be final. If the U.S. keeps trying to bully its way back to the top, we could all lose everything.
The future instead demands a peaceful transition to international cooperation in a multipolar world. This is not a question of politics, right or left, or of being pro- or anti-American. It’s about whether humanity has any future at all.
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Argentina General Strike Demands End to Milei's 'Chainsaw' Austerity Policies
"The Milei government has picked a fight with workers and pensioners, and now they will feel the full force of organized labor," said one union leader.
Apr 10, 2025
Increasingly fed up with economic policies under which poverty and inflation have soared while vital social services, wages, and the peso have taken huge hits, disaffected Argentinians took to the streets of cities across the South American nation Wednesday for the third general strike of right-wing President Javier Milei's tumultuous 16-month presidency.
Led by the General Confederation of Labor (CGT)—an umbrella group of Argentinian unions—the "paro general," or general stoppage, drew workers, the unemployed, pensioners, educators, students, and others affected by Milei's severe austerity measures and his administration's plans for more deep cuts. Demonstrations continued throughout Thursday.
"In the face of intolerable social inequality and a government that ignores calls for better wages and a dignified standard of living for all, the workers are going on strike," CGT explained ahead of the action.
Airlines canceled hundreds of flights as air traffic controllers and other airport workers joined the strike; many schools, banks, and other offices shut down; and ports, some public transport, and other services ground to a halt.
"The only thing the administration has brought is a wave of layoffs across state agencies, higher poverty rates, and international debts, which are the biggest scam in Argentina's history," the Association of Airline Pilots (APA) said.
Rodolfo Aguiar, secretary general of the Association of State Workers (ATE), said Wednesday that "after this strike, they have to turn off the chainsaw; there's no room for more cuts," a reference to both Milei's ubiquitous campaign prop and his gutting of public programs upon which millions of Argentinians rely.
"Right now, the crisis Argentina is facing is worsening," Aguiar added, warning about government talks with the International Monetary Fund. "The rise in the dollar will quickly translate into food prices, and the new deal with the IMF is nothing more than more debt and more austerity measures."
Milei's government is nearing agreement on a $20 million IMF bailout, a deeply unpopular proposition in a country left reeling by the U.S.-dominated institution's missteps and intentional policies that benefit foreign investors while causing acute suffering for millions of everyday Argentinians. Argentina already owes $44 billion to the IMF.
"We already have experience as Argentinians that no agreement has been beneficial for the people," retiree and striker Rezo Mossetti told Agence France-Press in Buenos Aires Thursday, lamenting that his country keeps getting into "worse and worse" debt.
CGT decided to launch the general strike during a March 20 meeting that followed a pensioner-led March 12 protest outside the National Congress in Buenos Aires. After fringe elements including rowdy soccer fans known as "barrabravas" joined the protests and committed acts of violence and vandalism, police responded by attacking demonstrators with "less-lethal" weapons including water cannons and tear gas. A gas canister struck freelance photojournalist Pablo Grillo in the head, causing a severe brain injury that required urgent surgery.
This, after Argentinian Security Minister Patricia Bullrich invoked controversial measure empowering more aggressive use of force against protesters and rescinding a ban on police use of tear gas canisters. The Security Ministry also filed a criminal complaint dubiously accusing organizers of the March 12 protest of sedition.
Milei and his supporters have portrayed the general strike as a treasonous assault on the fragile Argentinian economy and those taking part in the day of action as lazy and jobless.
When Clarín, the country's largest newspaper, cited a study by the Argentine University of Enterprise claiming that the general strike would cost the national economy around $185 million per day, University of Buenos Aires professor Sergio Wischñevsky retorted: "Very revealing. It means that's the magnitude of the wealth workers produce every day. It's the best argument to stop ignoring workers."
As he has done with past protests against his rule, Milei has also framed the general strike as "an attack against the republic" and repeated his threat that police would "crack down" on demonstrators.
Orwellian use of state infrastructure by Milei's "anarcho-capitalist" gvmnt. in Argentina. As the 36 hr. general strike begins, signs & loudspeakers at train stations across Buenos Aires read: "Attack against the republic! The syndicalist caste punishes millions of Argentines who want to work."
[image or embed]
— Batallon Bakunin ( @batallonbakunin.bsky.social) April 10, 2025 at 4:11 AM
General strikers largely shrugged off the threats of police violence and state repression.
"The right to strike is a worker right and I think there has to be more strikes because the situation with this government is unsustainable," Hugo Velazuez, a 62-year-old worker striking in Buenos Aires, told Reuters.
While the Argentinian mainstream media's coverage of the general strike was largely muted, images posted by independent progressive media showed parts of central Buenos Aires appearing practically empty.
Workers around the world showed solidarity with striking Argentinians.
"The Milei government has picked a fight with workers and pensioners, and now they will feel the full force of organized labor," said Paddy Crumlin, president of the London-based International Transport Workers' Federation (ITF), which boasts nearly 20 million members in 677 unions in 149 nations. "The international trade union movement stands ready to fight back with our Argentine comrades. We will not rest until these attacks on workers' rights are defeated."
ITF noted that various sectors of Argentina's transportation sector "are under direct threat of privatization," including the national commercial airline, Aerolíneas Argentinas, the National Highway Board, and the Argentinian Merchant Marine.
Milei—a self-described anarcho-capitalist who was elected in November 2023 on a wave of populist revulsion at the status quo—campaigned on a platform of repairing the moribund economy, tackling inflation, reducing poverty, and dismantling the state. He made wild promises including dollarizing Argentina's economy and abolishing the central bank.
However, the realities of leading South America's second-largest economy have forced Milei's administration to abandon or significantly curtail key agenda items, leading to accusations of neoliberalism and betrayal from the right and hypocrisy and rank incompetence from the left. According to most polling, Milei's approval rating has fallen from net positive to negative in just a few months.
Particularly galling to many left-of-center Argentinians is Milei's cozying up to far-right figures around the world, especially U.S. President Donald Trump.
Andrew Kennis, a Rutgers University media studies professor specializing in Latin America, noted similarities between the protests in Argentina and anti-Trump demonstrations in the United States.
"It's no coincidence that 5.2 million people were in the streets in all 50 states just this past Saturday and that the U.S. is now catching up with the mass resistance that's long been going on in Argentina," Kennis told Common Dreams Thursday.
Kennis—who this week published a deep dive on Milei's "destructive chainsaw theory" in Common Dreams—added that in the cases of both Milei and Trump, "there was no real honeymoon period, as there almost always is" for most new presidencies.
"In both countries, people were in the streets pretty damned fast and furiously," he added.
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