Inflation, Subisdies, and Reform, Argentina's Presidential Transisiton

Candela Aspiazu

In the changing political landscape of the world, many new leaders have been emerging with policies to streamline tumultuous foreign affairs. Among these countries is Argentina, led by President Javier Milei since Nov. 19, 2023. His different approach to governance compared to his predecessor, Alberto Fernandez, has been a very controversial topic for the citizens of Argentina and, quite frankly, the rest of the world as well.  Nevertheless, it is crucial to expose the unbiased truth about the changes occurring in Argentina and their effects on the lower class.

Compared to previous presidents, Milei has established much stricter policies centered around lowering inflation. Argentina has been experiencing extreme surges in prices for years, with it reaching a record high of 211.4 percent in 2023. Milei claims that in order for the economy to get back on track, the government must make "drastic cuts” in public expenses. These cuts primarily include funding reductions on various subsidies that have been essential resources for many. While these subsidies were helpful to many lower income citizens, they were also continuously abused by individuals who supposedly “qualified” for them just to exploit their financial benefits. These cutbacks have managed to bring inflation down the lowest it’s been in five years — putting it at a record 1.5 percent in May 2025.

Though Milei's strategy has proven effective, it has still been a shock for many other citizens. Under Milei’s administration, the prices of basic living skyrocketed; turning it into a nation where coffee goes for an average of 7905.49 Argentinian Pesos, or $5.81 US Dollars. This was extremely new for many middle class individuals used to the democratic government from previous president Alberto Fernández, who led under Kirchnerism. This social system played a big role in the difficulty of transitioning from one government to another. Under it, people of all classes receive large amounts of money from subsidies where they apply for different plans, and receive pay from the government depending on their situation. There are subsidies for nutrition, infants, scholarships, medicine and many more. This generous style of government has fueled the never-ending cycle of lower-class financial aid that grew the country's inflation.

Under new leadership, prices are the highest they have ever been. Subsidies are more limited, and offered exclusively to Argentinian citizens in much lower quantities. Milei’s tactics for managing inflation has aid-dependent Argentinians currently tight on money, but with a promise of a much brighter economic future.

Despite these drastic changes, Argentina seems to be moving on the road to recovery — from a democratic, giving government to a stricter and more expensive one. Both Alberto Fernandes and Javier Milei have their negatives and positives, but the ending product of their presidencies seem to be moving in opposite directions. The reality of the matter is that the situation is different for every person of every economic status. But which version of government leads to the best future for Argentina? With time, we’ll see.