Javier Milei: President of Argentina, an economist and self-described anarcho-capitalist who campaigned wielding a chainsaw to symbolize cutting state bureaucracy. He took office in late 2023 with the country on the brink of hyperinflation and roughly 50% poverty.
What this episode covers
Conducted in Spanish with simultaneous English translation, this Lex Fridman conversation traces Milei's intellectual journey from neoclassical economist to Austrian-school libertarian, his ideal of anarcho-capitalism versus the minarchism he practices, and the specifics of his first year governing Argentina. He lays out in granular detail the fiscal and monetary crisis he inherited and the reforms he implemented, including halving ministries, mass layoffs, ending money printing, and cleaning up the central bank. Milei frames his presidency as a multi-front war against socialism on economic, political, and cultural battlegrounds, and as a fight against entrenched corruption and a hostile media. He praises allies like Elon Musk and Donald Trump, discusses dollarization and currency competition, and reflects on faith, loyalty, Messi, his rock-and-roll roots, and what freedom means to him.
Recommended on this episode
Human Action
Ludwig von Mises
“the experience of reading Human Action by mises... I started to read this book right from the first page and I didn't stop until I finished it and that was a true revolution in my head”— Javier Milei
Principles of Economics
Carl Menger
“another book that was a very significant influence and impact on me was the principles of political economics by manger it was truly eye openening”— Javier Milei
Money and Time
Roger Garrison
“the only thing I had read about the Austrian school until then had been money and time a very good book by Garrison”— Javier Milei
The guest's own work
Capitalism, Socialism and the Neoclassical Trap
Javier Milei
“my latest book called capitalism socialism and the neoclassical trap deals precisely with this issue”— Javier Milei
Also referenced (named, not recommended)
Monopoly and Competition
Murray N. Rothbard
“one of the people who worked on my team suggested I read an article by Murray Newton rothbart called Monopoly and competition... everything I've thought about Market structure... is wrong”— Javier Milei
Socialism
Ludwig von Mises
“socialism and this is what mises condemns in his book socialism shows is that uh without private property prices cease to exist”— Javier Milei
The Road to Serfdom
Friedrich Hayek
“this is proven in Hayek's book The Road to serom that any Middle Ground solution is unstable in terms of capitalism”— Javier Milei
Libre
Nino Bravo
“there is a song um by a Spanish singer called Nino Bravo... the song is called lib and the song it tells the story of Peter feter”— Javier Milei
Big reveals from this episode
- Milei says inflation was rising 1% per day (about 3,700% annualized) when he took office, with December wholesale inflation that annualized to roughly 177,000%.
- He claims that opening the economy immediately would have triggered hyperinflation, pushing poverty near 95% and likely returning the Peronists to power, so ending the fiscal deficit came first.
- He reduced ministries from a larger number to nine (now eight), dismissed about 50,000 civil employees, halted public works, and ended discretionary transfers to provinces.
- Milei states Argentina achieved fiscal balance in January, his first month in office, after running deficits in 113 of the prior 123 years.
- He describes a total fiscal adjustment of 15 points of GDP (5 in the treasury, 10 at the central bank), calling it the largest in human history.
- He claims poverty fell from 57% in January to 46%, an 11-point drop, while asserting not a single job was lost in the process.
- He says corruption charges are filed in court, not the media, citing Cristina Fernandez de Kirchner's corruption conviction and the removal of privileged pensions.
- Milei names media and social-media corruption as a major battle, saying he removed official government advertising, which is why outlets cover him negatively.
Worth remembering
- Milei dates his conversion to freedom ideas to 2013-2014, when GDP-per-capita data over 2,000 years looked like a hockey stick, sparking his study of Austrian economics.
- He recounts buying 20-30 Austrian-school books and budgeting only for dog food and taxi fare so he could spend the rest on more books.
- Reading Mises's 'Human Action' in one sitting was, he says, a true revolution in his thinking; Murray Rothbard is his greatest intellectual inspiration.
- He claims the deregulation ministry eliminates between one and five regulations every day, with about 3,200 structural reforms still pending.
- Milei says country risk fell from 3,000 basis points to 770 and Fitch raised Argentina's rating to Triple C.
- He recounts his first meeting with Elon Musk unexpectedly turning into a discussion of demography and population growth, with Musk joking that Milei's four-legged 'children' don't count.
- Milei says he met Sylvester Stallone the night before and draws inspiration from Stallone's message of carrying on despite repeated blows.
- He alleges Argentine media sent three drones to spy on him at the presidential residence.
- He declares Messi the greatest footballer of all time, even over Pele, citing an article titled 'Messi is impossible.'
- Milei names Elvis Presley the greatest rock singer ever, says the Rolling Stones are his favorite band, and recalls singing 'Panic Show' to 10,000 people at Luna Park.