Argentine President Javier Miley has announced plans to cut 70,000 civil servant pay in the coming months as part of an effort to reduce the size of the government apparatus. The agency Bloomberg reported on this development. In a show of seriousness about reducing the public sector before the elections, Miley appeared at rallies with a chainsaw, leading to media labeling his approach as “chainsaw economics.” He is often compared to former U.S. President Donald Trump and Brazilian President Jair Bolsonaro.
During his inauguration ceremony in December 2023, Miley delivered a keynote address emphasizing the need to undo the damage from decades of decline. He stated that significant spending cuts are necessary due to lack of funds, and emphasized the need for shock therapy. Miley also promised to reduce public debt and tackle inflation, which has soared to 140%. This approach marks a significant shift in economic policy under his leadership.