In a major economic policy shift, 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.
Miley has taken a chainsaw-like approach to cutting public sector spending, leading media outlets to label his strategy “chainsaw economics.” He has been compared to former U.S. President Donald Trump and Brazilian President Jair Bolsonaro for their similar economic policies.
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 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.
