In a recent interview with Lex Fridman, Javier Milei described how his “chainsaw” model could inspire reforms all the way to the White House. FEE.org Daphne Posadas
“What is the difference between a madman and a genius? Success.” That opening line set the tone for Javier Milei’s two-hour interview with Lex Fridman. In it, Argentina’s libertarian president reflected on the first few months of his administration following his historic electoral victory on November 19, 2023.
Milei has been called many things, but his methods and philosophy thrive under scrutiny. In a free society, being questioned is both a challenge and an opportunity. What sets Milei apart is his ability to answer tough questions with logic, evidence, and, most importantly, results.
His anarchist rhetoric is—as he said—rooted in a libertarianism that has an “unrestricted respect for the life project of others based on the principle of non-aggression and in defense of the rights to life, liberty, and property,” a definition championed by Alberto Benegas Lynch, Jr., and that follows John Locke’s ideas.
A Model Exported
Milei’s reforms haven’t gone unnoticed in the U.S., especially after the announcement of the Department of Government Efficiency (DOGE), to be led by Elon Musk and Vivek Ramaswamy.
In the interview, Milei highlighted how Argentina’s Ministry of Deregulation and State Transformation, led by Federico Sturzenegger, is systematically dismantling protectionism and privilege by eliminating 1 to 5 economic restrictions daily.
This approach is catching attention worldwide, as Musk and Ramaswamy have hinted at adapting this “chainsaw” strategy. Ramaswamy recently posted on X: “A reasonable formula to fix the U.S. government: Milei-style cuts, on steroids.”
A reasonable formula to fix the U.S. government: Milei-style cuts, on steroids.— Vivek Ramaswamy (@VivekGRamaswamy) November 18, 2024
The Chainsaw Reforms
If there’s one image that defined Milei’s 2023 campaign, it’s the chainsaw. He carried a real chainsaw to his rallies, chanting “¡Motosierra! ¡Motosierra!” (Spanish for “chainsaw”) as a symbol of his promise to slash Argentina’s bloated bureaucracy.
When Milei took office, Argentina’s inflation was out of control, climbing at almost 1% per day. Fixing the fiscal deficit became his top priority, knowing nothing else would work without a solution on that front. In just a few months, he made drastic changes: cutting over 50,000 government jobs, shutting down more than half of the ministries, slashing regulations, and removing subsidies.
The results? Inflation has dropped from 211% year over year in December 2023 to 107.4% in November 2024, according to the latest inflation data from INDEC. According to UFM Reform Watch’s Daniel Fernandez, Javier Milei’s government has now achieved 10 consecutive months of primary fiscal surplus: “Between January and October 2024, the Argentine government accumulated a primary fiscal surplus equivalent to nearly 1.7% of GDP”—a remarkable turnaround.
JP Morgan now predicts Argentina's GDP is already growing at an annualised rate of 8.5%.
— Tom Harwood (@tomhfh) November 22, 2024
The bank also now predicts that in Q1 2025, inflation will be 2.5% per month down from the 3.8% monthly average it had previously predicted.https://t.co/qOvhLppCGe
Milei: A Former Academic
As a former economics professor, Milei excels at breaking down complex economic concepts. Early in the interview, he provided a roadmap for those interested in understanding Austrian economics with big references: Human Action by Ludwig von Mises and Principles of Economics by Carl Menger, two starting points for him. He also name-dropped other thinkers, including Murray Rothbard, Friedrich Hayek, Hans-Hermann Hoppe, Jesús Huerta de Soto, Juan Ramón Rallo, Philipp Bagus, and Walter Block—a quick guide to both Anglo and Hispanic perspectives on libertarian thought.
When Fridman dug deeper and asked about his economic philosophy, Milei replied: “Ideally, anarcho-capitalist; in reality, minarchist.” This summarizes his pragmatic approach to reducing the state’s size through what he calls “the largest structural reform in Argentina’s history” while being realistic about what’s possible. Here Milei also addressed criticism from some libertarians, saying they often fall for the “nirvana fallacy”—expecting perfect solutions in an imperfect world.
Key Takeaways
There are two main takeaways from Milei’s interview with Fridman. First, Milei knows what he’s talking about. Too many politicians don’t really understand economics, but Milei clearly does. He doesn’t just memorize numbers; he explains the reasoning behind his decisions, and it makes sense. Second, market-driven reforms can deliver results. Contrary to popular belief or experts’ advice, these changes don’t require decades to show their impact.
Will these reforms catch on all the way to the White House? Only time will tell. But for now, it’s clear that Milei’s approach is turning heads around the world.
I highly recommend watching or listening to the full conversation. It’s an incredibly stimulating discussion, particularly for economics enthusiasts eager to see theory translated into real-world policy action.
