Argentina's New President Announces Drastic Measures to Rescue Ailing Economy

Javier Milei's plan includes slashing the currency's value, reducing government aid, and raising taxes, amidst criticism and a struggling economy.

Argentina's new president, Javier Milei, has announced radical economic measures to rescue the country's ailing economy, including slashing the currency's value in half, reducing aid to provincial governments, suspending public works, cutting subsidies for gas and electricity, and raising some taxes.
Inflation in Argentina has hit 161%, its economy is shrinking due to a ruinous drought, and its currency has lost about 90% of its value against the U.S. dollar over the past five years.
Milei's plan includes balancing the budget by the end of 2024 by slashing spending and imposing tax hikes, and increasing aid to Argentina's poorest to help cushion the economic pain.
Milei plans to devalue the peso from 400 to 800 per $1 U.S. dollar and then devalue it by an additional 2% each month, aiming to make Argentina's exports less expensive on global markets and reduce the country's trade deficit.
Critics argue that Milei's plan will cause needless pain to ordinary people and that the devaluation doesn't go far enough, as it would narrow but not close the gap between the official exchange rate and the black market rate.