BUENOS AIRES/WASHINGTON D.C. – Argentina's recent economic performance, marked by significant growth and a reduction in poverty rates under President Javier Milei's free-market reforms, is drawing sharp contrasts with the fiscal and trade policies observed in the United States. Jessica Riedl, a Senior Fellow at the Manhattan Institute, highlighted this divergence in a recent tweet, stating, > "As Argentina shows the power of smart free market policies, America's Democrat and Republican populists compete to drive up debt, spend like drunken sailiers, intimidate businesses, and block trade even with allies. What a world."
Since taking office in December 2023, President Milei has implemented sweeping deregulation and fiscal austerity measures, including the "Ley Bases" passed in June 2024. These reforms have led to a notable economic turnaround, with Argentina's economy experiencing an 8% year-over-year growth rate in April 2025. Official data from the National Institute of Statistics and Census (INDEC) indicates a significant drop in the poverty rate to 38.1% in the second half of 2024, down from 52.9% in the first half. The International Monetary Fund (IMF) projects a 5% growth for Argentina in 2025, and investor interest has begun to return.
In contrast, the United States has seen its national debt continue to climb, surpassing $36 trillion by May 2025. While the tweet criticizes both Democrat and Republican "populists," historical data shows both parties have contributed to the rising debt, often due to major events like wars, recessions, and tax cuts. For instance, the national debt significantly increased under both the Trump (Republican) and Biden (Democrat) administrations, with the former adding an estimated $7.1 trillion during his term and the latter overseeing substantial spending initiatives.
US trade policy under recent administrations has also seen a shift towards protectionism and unilateral actions, impacting relationships with allies. Both the Trump and Biden administrations have utilized tariffs, particularly against China, but also in ways that have created friction with traditional partners. Critics argue that such policies, aimed at prioritizing domestic industries, have at times led to trade disputes and undermined long-standing alliances.
Jessica Riedl, a prominent voice in economic policy, serves as a Senior Fellow at the Manhattan Institute, specializing in budget, tax, and economic policy. Her background includes six years as chief economist to Senator Rob Portman (R-OH) and staff director of the U.S. Senate Finance Subcommittee on Fiscal Responsibility and Economic Growth. Riedl's commentary underscores a growing debate on the efficacy of differing economic philosophies in addressing national prosperity and fiscal responsibility.