La carta abierta de economistas de todo el mundo sobre los peligros del programa económico de Javier Milei en Argentina es una intervención bien argumentada y oportuna. La carta identifica correctamente los riesgos clave de las propuestas de Milei, que incluyen:

Aumento de la desigualdad: el plan de Milei para recortar drásticamente los impuestos y reducir el gasto público trasladaría la carga del ajuste a los pobres y a la clase trabajadora. Esto exacerbaría los ya altos niveles de desigualdad en Argentina.

Crisis fiscal: Mayores reducciones en los ingresos tributarios del gobierno agravarían la crisis fiscal de Argentina. Esto haría más difícil para el gobierno invertir en infraestructura y servicios esenciales, y podría conducir a una mayor disminución de los niveles de vida.

Dolarización: La dolarización eliminaría la soberanía monetaria de Argentina y la haría más vulnerable a los shocks externos. También provocaría una caída de los salarios reales y una pérdida de empleos.

La carta también destaca las lecciones de la experiencia pasada de Argentina con la economía de laissez-faire y la protodolarización, que llevaron a crisis económicas y dificultades.

La carta concluye pidiendo un enfoque más equilibrado y sostenible de la política económica en Argentina. Este enfoque debería reconocer las complejidades de las economías modernas y la necesidad de políticas matizadas y multifacéticas que aborden las necesidades de los diferentes grupos sociales.

Estoy de acuerdo con los autores de la carta en que el programa económico de Milei es altamente riesgoso y probablemente tendría consecuencias negativas para la economía y el pueblo argentino. Insto a los votantes argentinos a considerar cuidadosamente los riesgos de las propuestas de Milei antes de emitir su voto.

Votantes idiotamente votantes

Todos los votantes tienen sus propias razones para votar por el candidato que eligen. En el caso de los votantes de Milei, hay una serie de factores que pueden influir en su decisión, entre ellos:

El descontento con el establishment político: Muchos votantes de Milei están descontentos con el establishment político argentino, que consideran corrupto e incompetente. Milei representa una alternativa radical a este establishment, y su discurso antisistema atrae a muchos votantes que buscan un cambio.

La creencia en el libre mercado: Milei es un defensor del libre mercado, y su discurso apela a los votantes que creen que el libre mercado es la mejor manera de promover el crecimiento económico y el bienestar social.

La frustración con la inflación: La inflación es un problema crónico en Argentina, y muchos votantes están frustrados con la incapacidad del gobierno para controlarla. Milei promete reducir la inflación a través de la dolarización, una medida que es popular entre los votantes que están cansados de la inflación.

The Dangers of Javier Milei’s Economic Program in Argentina

As economists from around the world who are supportive of broad-based economic development in Argentina, we are especially concerned by the economic program of one of the candidates, which has become a major issue of discussion in the national election. Given Argentina’s frequent financial crises and recurring bouts of very high inflation, a deep-seated desire for economic stability is completely understandable. However, while apparently simple solutions may be appealing, they are likely to cause more devastation in the real world in the short run, while severely reducing policy space in the long run. Javier Milei’s economic proposals are presented as a radical departure from traditional economic thinking. However, we believe that these proposals, rooted in laissez-faire economics and involving contentious ideas like dollarization and significant reductions in government spending, are fraught with risks that make them potentially very harmful for the Argentine economy and the Argentine people. The economic vision underlying these proposals supposedly advocates minimal government intervention in the market, but actually relies heavily on state policies to protect those who are already economically powerful. Reductions in tax rates and public spending push many essential goods and services away from public provision to private commercial providers, which enriches them but reduces the access of ordinary citizens, especially the poor. The proposal for dollarization aims to replace the Argentine peso with the US dollar as domestic currency. Both ideas may seem appealing in their simplicity and promises of a quick fix to control inflation and instability. But they do not recognize major economic realities. The laissez-faire model assumes that markets work perfectly if the government does not intervene. But unregulated markets are not benign—they reinforce unequal power relations that worsen inequality and hinder the application of key developmental policies— including industrial, social, and environmental policies. In Argentina as in most other countries with complex economic structures and challenges of income and asset inequality, inflation, and external debt, the need is for nuanced and multifaceted policies that recognize the needs of different social groups. Markets are also prone to failures, driven by externalities (when all benefits or costs cannot be ascribed to individual agents) and information asymmetry (when some players on a market know more than others). The 2008 global financial crisis showed that inadequate market regulation can have disastrous consequences. The experience of the Covid-19 pandemic provided more evidence of the need for public intervention. Argentines are all too familiar with the pain of laissez-faire economics that have been imposed by international lenders like the IMF, which have in the past increased poverty and economic insecurity

and inhibited the country’s development. The program proposed by Milei would create more socio- economic inequality by reducing the role of the state in redistribution and social welfare. A major

reduction in government spending would increase already high levels of poverty and inequality, and could result in significantly increased social tensions and conflict. Milei’s idea of drastically cutting taxes while reducing public spending would significantly reduce the ability of the state to meet the social and economic rights of citizens. Meanwhile, further reductions in government tax revenues would aggravate the fiscal crisis. Similarly, dollarization seems to offer a solution to Argentina’s chronic inflation problem, and could be tempting when the value of savings and the ability to consume are both decimated by runaway inflation. The current shortage of foreign exchange reserves would make the initial conversion rate of peso to dollar so high that it would generate further inflation. This means a decline in real wages, such that the subsequent reduction of inflation would be achieved by a major fall in the labor share of

national income, putting the burden of adjustment on working people. Dollarization also implies the long-run impossibility of building monetary sovereignty. Here too, Argentina’s past experience with proto-dollarization (the currency board arrangement of the 1990s) created a brief illusion of stability, but adversely affected the real economy. It generated unemployment and real income losses for workers—and eventually led to an even bigger crisis in 2001 because of the fiscal and monetary constraints of the peso-dollar peg. In short, Javier Milei’s dollarization and fiscal austerity proposals overlook the complexities of modern economies, ignore lessons from historical crises, and open the door for accentuating already severe inequalities. As Argentina navigates its complex economic landscape, it is crucial to approach policy making with balanced, empirically grounded strategies that are not only appealing in the short run but also sustainable, equitable, and enabling in the long run.

Signatories: 1. Jayati Ghosh, Professor of Economics, University of Massachusetts Amherst, USA 2. Branko Milanovic, Research Professor, The Graduate Center, CUNY, New York, USA 3. Thomas Piketty, Professor of Economics, Paris School of Economics, France 4. Jose Antonio Ocampo, Professor, Columbia University, former Finance Minister Colombia, former Under Secretary General for Economics and Social Affairs, United Nations 5. Korkut Boratav, Emeritus Professor of Economics, University of Istanbul and Turkish Social Science Association 6. Jomo Kwame Sundaram, Fellow, Academy of Science Malaysia and former Assistant Secretary General for Economic and Social Affairs, United Nations 7. Ben Fine, Emeritus Professor of Economics, SOAS, University of London 8. Robert Pollin, Distinguished Professor of Economics, University of Massachusetts Amherst, USA 9. José Gabriel Palma, Professor of Economics, University of Cambridge and University of Santiago de Chile 10. Theresa Ghilarducci, Professor, New School University, New York 11. Andrew Fischer, Professor, Institute of Social Studies The Hague, (part of Erasmus University Rotterdam) and Scientific Director, The Dutch Research School for International Development 12. Gerald Epstein, Professor of Economics and Co-Director Political Economy Research Institute, University of Massachusetts Amherst, USA 13. Gabriel Zucman, Professor of Economics, Paris School of Economics, France 14. C. P. Chandrasekhar, Former Professor, Jawaharlal Nehru University, New Delhi India. 15. Matías Vernengo, Professor of Economics, Bucknell University, USA 16. Dimitri Papadimitriou, President and Professor of Economics, Levy Economics Institute & Bard College, USA 17. Prabhat Patnaik, Emeritus Professor of Economics, Jawaharlal Nehru University, New Delhi, India 18. Nancy Folbre, Emerita Professor of Economics, University of Massachusetts Amherst, USA 19. Robert H. Wade, Professor, London School of Economics, UK 20. Ilene Grabel, Distinguished University Professor, University of Denver, USA 21. Costas Lapavitsas, Professor of Economics, SOAS, University of London, UK 22. Alicia Giron, Universidad Nacional Autónoma de México, Mexico City 23. Arthur MacEwan, Professor Emeritus of Economics, University of Massachusetts Boston 24. Diane Elson, Professor, University of Essex, UK

25. Sergio Cesaratto, Professor of Economics, University of Siena, Italy 26. Daniela Gabor, Professor of Economics, University of Western England, Bristol, UK 27. Kevin Gallagher, Professor of Economics, University of Boston, USA. 28. Tamás Szentes, Professor Emeritus and Member of the Hungarian Academy of Sciences, Corvinus University of Budapest, Hungary 29. Isabella Weber, Department of Economics, University of Massachusetts Amherst, USA 30. Erik S. Reinert, Honorary Professor, Institute of Innovation and Public Purpose, University College London 31. Franklin Serrano, Instituto de Economia, Federal University of Rio de Janeiro, Brazil 32. Antonella Picchio, Former Professor of Political Economy, University of Modena, Italy 33. Lawrence King, Professor of Economics, University of Massachusetts Amherst, USA 34. Naila Kabeer, Professor, London School of Economics, London, UK. 35. James Boyce, Emeritus Professor of Economics, University of Massachusetts Amherst, USA. 36. Julia Braga, Professor of Economics, Universidad Federal Fluminense, Rio de Janeiro, Brazil 37. Vamsicharan Vakulabharanam, Professor of Economics, University of Massachusetts Amherst, USA 38. Gianni Vaggi, Professor of Economics, University of Pavia, Italy 39. Sunanda Sen, Former Professor of Economics, Jawaharlal Nehru University, New Delhi India 40. Leonce Ndikumana, Distinguished Professor of Economics, University of Massachusetts Amherst, USA 41. Alicia Puyana Mutis, Professor of Economics, FLACSO, Mexico City 42. K. Velupillai, Former Professor of Economics, University of Trieste, Italy; New School University, University of Cambridge 43. Amit Bhaduri, former Professor and Emeritus Professor, Jawaharlal Nehru University, New Delhi India and University of Pavia, Italy 44. Mwangi wa Githinji, Department of Economics, University of Massachusetts Amherst, USA 45. Sushil Khanna, Former Professor of Economics, Indian Institute of Management Kolkata, India 46. Leonardo Burlamaqui, Professor of Economics, State University of Rio de Janeiro, Brazil 47. Venkatesh Athreya, Professor of Economics (Rtd), Bharathidasan University, India 48. Sergio Cesaratto, Professor of Economics, Università di Siena, Italy 49. Sattwick Dey Biswas, Research Fellow, Institute of Public Policy, NLS, Bengaluru, India 50. Mustafa, Professor of Economics, Anadolu University, Turkey 51. Daniel Kostzer, Chief Economist, International Trade Union Confederation (ITUC/CSI), Belgium 52. Goddanti Omkarnath, Professor, School of Economics, University of Hyderabad, India 53. Arturo Valencia, Research Professor, Universidad Nacional Autónoma de México, México 54. Patrick Bond, Distinguished Professor and Director, Centre for Social Change, University of Johannesburg, South Africa 55. Chirashree Das Gupta, Associate Professor, Jawaharlal Nehru University, New Delhi, India 56. Joaquín Arriola P., assistant professor of Political Economy, Basque Country University, Spain 57. Muneer Babu M, Assistant professor, Department of Economics, Dr. John Matthai Centre, University of Calicut, India 58. Byasdeb Dasgupta, Professor, University of Kalyani, India 59. Jude Onemolease, CEO, Durandel Ltd/Duralab, Nigeria 60. Mahalaya Chatterjee, Professor, University of Calcutta, India

61. Chinglen Maisnam, Professor, Manipur University, India 62. Dr Stanley chitukwi, CEO, Consortium universities, Malawi 63. Gustavo Moura, Brazil 64. Ignacio Silva Neira, Berlin School of Economics and Law, Germany 65. Lance Vicher, University of the Philippines Manila, Philippines 66. Manuel Gonzalo, Professor Researcher, UNQ UNDEC, Argentina 67. Agostina Costantino, Researcher and teacher, IIESS-CONICET, Argentina 68. Pablo Bortz, Professor, CONICET, Argentina 69. Sankar Varma, Research Scholar, Christ University, India 70. Mariano Féliz, Dr., CONICET-UNLP, Argentina 71. Patrick Chaylee, National Sun Yat-Sen University, Taiwan 72. Andres Lazzarini, Goldsmiths College, University of London, United Kingdom 73. Leonardo E. Stanley, Economic – Associate Researcher, Argentina 74. Alexandre Freitas, Professor, UFRRJ, Brasil 75. Omar Dahi, Hampshire College, USA 76. Juan Carlos Moreno Brid, Professor of Economics, UNAM, Mexico 77. Anuradha Chenoy, Former Professor, Jawaharlal Nehru University, India 78. Carmine Gorga, President, The Somist Institute, USA 79. Neil Coleman, Co-Founder, Institute for Economic Justice, South Africa 80. Gabriela Dutrenit, Professor, Universidad Autónoma Metropolitana, Mexico 81. Ramiro E. Alvarez, UNM-CONICET, Argentina 82. Lara Merling, Bucharest University of Economic Studies, Romania 83. Saul Escobar Toledo, Presidente Junta de Gobierno, Instituto de Estudios Obreros Rafael Galván AC, México 84. Florencia Medici, Researcher, National Scientific and Technical Research Council, Argentina 85. Gerald Epstein, Professor of Economics and Co-Director, Political Economy Research Institute (PERI), University of Massachusetts Amherst, USA 86. Martin Vernengo, Profesor Adjunto, UNIVERSIDAD NACIONAL DE HURLINGHAM, Argentina 87. Jose Antonio Pereira de Souza, Economist, Brazil 88. Smitha Francis, Consultant, NPEI, IIT Bombay, India 89. Alexis Saludjian, France 90. Fidel Aroche Reyes, Universidad Nacional Autónoma de México, México 91. Kathleen McAfee, Professor, San Francisco State University, USA 92. Pablo Samaniego, Profesor, Pontificia Universidad Católica del Ecuador, Ecuador 93. Santiago Graña-Colella, UNMDP-UNSAM, Argentina 94. Mariana Pellegrini, Researcher, UNGS/UNMdP, Argentina 95. Lauro Mattei, Economics Professor, Federal University of Santa Catarina, Brazil 96. Rachid Laajaj, Associate Professor, Universidad de los Andes, Colombia 97. Marco Missaglia, Professor of Economics, University of Pavia, Italy 98. Praveen Jha, Professor of Economics, Jawaharlal Nehru University, New Delhi, India 99. Gustavo Indart, Professor Emeritus, University of Toronto, Canada 100. Ana Célia Castro, Director Institute for Advanced Studies, Federal University of Rio de Janeiro, Brazil 101. Gilad Isaacs, Executive Director, Institute for Economic Justice, South Africa 102. Devidas Tuljapurkar, Joint Secretary, All India Bank Employees Association, India 103. Ingrid Kvangraven, Kings College London, UK 104. Rohith Jyothish, O. P. Jindal Global University, India 105. Javier Ghibaudi, Professor of Economics, Universidade Federal Fluminense, Brazil

106. Santiago Gahn, University of Bari, Italy 107. Utsa Patnaik, Emeritus Professor, Jawaharlal Nehru University, New Delhi, India 108. Raja Junankar, Emeritus Professor, Western Sydney University and UNSW Canberra, Australia