Greetings from Argentina, where we're currently in the throws of bureaucratic whiplash, and I mean this in the best way possible. Buckle up for a summary of the Milei Administration's first work week of economic measures. As an Argentinian who's from the US, the home of the biggest government the world has witnessed, I can't understate how incredible it is to see a government shrink its workforce. Please stay tuned for more signal coming from boots-on-the-ground reporting.
OK, without further ado:
Note: I’ve just fed this through ChatGPT for translation; DYOR for clarification of some terms if need be.
Adjustments and measures from the first week of the new government:
There are significant cuts:
Ministries reduced from 18 to 9. (-50%)
Secretariats cut from 106 to 54 (-49%)
Subsecretariats reduced from 182 to 140 (-23%)
Official staff numbers reduced by 34%
Initiated a review of state contracts.
Advertising guidelines suspended for one year.
State labor contracts less than a year old will not be renewed.
Contracts with universities are under review.
Reviewing the state's workforce (spoiler: bloated like a dead carcass).
Official advertising guidelines suspended for 1 year.
In 2023, 34 billion (ARS) was spent on advertising. There's no money left, certainly not for funding militant partisan media.
Minimal discretionary transfers
The State will not bid on new public works and cancels all approved projects that have not yet begun.
Subsidies for energy and transportation reduced
Adjusting the exchange rate to boost exports
Elimination of the SIRAs.
Reduction of drivers and the fleet of official vehicles. - sale of 2 YPF planes, enforced by the State's dominant board position (formerly used by CFK as a taxi)
Removing insurance for artwork at the Quinta de Olivos. Millions of dollars wasted in insuring vanity pieces from the previous administration.
Bond tender to manage commercial debt by absorbing pesos, relieving pressure on Leliqs, and setting deadlines.
Lowering "pases" rates to buy time against the explosion of the "Massazo" (the hyperinflationary time bomb from the previous administration.
Dilution of Leliqs (if you don't know what those are, it's akin to a state-sponsored ponzi).
100% in-person attendance mandated in the National Public Administration.
If you don't work, you don't get paid.
Freezing funds allocated to bloated populist social organizations.
Boosting direct allocations to beneficiaries.
Social organizations will bear the cost of clearing blockades.
Prohibiting children and adolescents at protests.
Roadblocked protests are prohibited.
Environmental damage fines for burning tires at protests.
In just 5 days, they've accomplished more than the previous administration did in 16 months.