went on TV to praise what he called the population’s sacrifice. On the first anniversary of his government, the president recalled that his plans to impose some order on the economy provided for a . It was no exaggeration: the tightening controlled the exchange rate and inflation, at the cost of a .
Milei has never hidden her tolerance for the consequences of a bitter adjustment. Still, celebrating the tightening of accounts is a strange privilege of presidents in very specific situations. Decades of political and electoral studies show the conditions under which governments can convince the population to swallow unpopular measures.
A president is more likely to gain support for a spending squeeze if he announces that path during the campaign. It is not a very popular initiative among politicians and marketers, and it only works when there is a clear demand for this type of measure. The cost of appearing unexpectedly with a rush, on the other hand, is usually too high.
One factor was decisive in throwing voters in Milei’s direction and explaining the support of the measures adopted so far: Argentine hyperinflation. Reforms with a high social cost are accepted with less resistance by the population and political forces when they are sold as the only way to recover violent losses and avoid even more losses.
The celebration of the results of Milei’s tightening caused some enthusiasts to point out the contrast between the Argentine shock treatment and the resistance of a more modest fiscal adjustment. Politically, the comparison is as predictable as it is mistaken. The two presidents are completely different animals.
Milei of the mandate he received to face dramatic circumstances, knowing that he will be judged by the results. Lula balances between the decision to deliver a consistent program and the risk of the negative effects of inflation. It may be painful for each one’s critics, but the Argentine and Brazilian choices have a simple explanation: the incentives and restrictions of democratic life.
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