Kibbe on Liberty: Ep 360 | Milei Has a Free-Market Mandate in Argentina

Date: November 12, 2025
Host: Matt Kibbe
Guest: Agustin Etchebarne (CEO, Libertad y Progreso, Buenos Aires)

Episode Overview

In this episode, Matt Kibbe discusses the historic electoral victory of Javier Milei and its implications for Argentina’s economic and political future with Agustin Etchebarne, CEO of the think tank Libertad y Progreso. The conversation spans the roots of Austrian economic thought in Argentina, the country’s prolonged struggle with inflation and Peronist policies, Milei’s audacious reform agenda, and the cultural and intellectual revolution now underway. The interview is sprinkled with insights into how free-market ideas have gained traction among Argentine youth, the role of social media in political communication, and the vital importance of translating complex economic notions into accessible messages.

Key Discussion Points and Insights

1. Background: Libertad y Progreso & Austrian Economics in Argentina

• Agustin’s Role: CEO of Libertad y Progreso, a Buenos Aires think tank focused on spreading free-market ideas and influencing public policy ([01:40]).
• Intellectual Tradition: Strong, though minority, presence of Austrian economic thought in Argentina; influence has grown due to persistent inflation making Keynesianism less credible ([02:20], [04:09]).
• Legacy: Ludwig von Mises delivered lectures in Argentina in the 1960s; a small cadre of educators maintained Austrian teachings despite mainstream opposition ([02:59], [03:53]).

2. Political Context: Argentina’s Crisis and Turn to Milei

• Deep Problems: Chronic inflation, central bank bankruptcy, extensive government intervention, and dominance by Peronist/leftist ideologies ([05:15], [09:09]).
• Milei’s Campaign: Fought a dirty, high-stakes campaign against a radical opposition; initial setbacks in Buenos Aires followed by a landslide win ([05:48], [08:49]).
  • Notable Quote (Agustin, 05:48):
    “The campaign was very difficult... the country risk doubled... interest rates skyrocketed to 60% per annum...”
• Midterm Triumph: Milei’s party surges in Congress, making major reforms feasible ([08:49]).

3. Milei’s Economic Reforms and Achievements ([09:09])

• Spending Cuts: Reduced federal expenditures by 25% in the first month; brought the fiscal deficit from 6% to 0%, creating a surplus.

• Inflation Tamed: Brought inflation down from 211% in 2023 to an estimated 30% in 2025, with projections for single-digit inflation by 2026.

• Market Signals: Stock market up 70% in a week, country risk dropped by 600 points, new investments flow in.

• Defying Keynes: Contradicts the Keynesian prescription; spending cuts led to economic recovery, not contraction.

  (Agustin, 09:09): “By cutting expenditures, what happens is exactly the opposite that Lord Keynes would say, because we cut expenditures and the economy made a recovery in a V-shaped recovery.”

4. Reforms on the Horizon: What’s Next for Milei? ([13:40])

• Legislative Power: With nearly half the lower house, Milei can plausibly pass key reforms.

• Priorities:

  1. Labor Law Reform: Addressing informality (45% of workforce) via more flexible labor policies.
  2. Tax Simplification and Relief: Reducing and streamlining 155+ burdensome taxes.
  3. Central Bank Reform & Dollarization: On the agenda, but likely a longer-term effort.

• Central Bank Stabilization: Debt almost eradicated, reserves rising, money printing halted.

  (Agustin, 16:13): “Now we have a sound central bank with positive reserves… this is very important to have a more sound central bank.”

5. Popular Support and Cultural Change

• Public Tolerance for Pain: Argentinians supported harsh but transparent cuts after decades of decline and hyperinflation.
• Poverty Drops: Poverty reduced from 52% to 31% in under two years ([18:39]).
• Investment Boom: $55 billion in new deals announced within a week — energy, mining, and tech ([18:39]).

6. Milei’s Unique Communication and Appeal ([24:23])

• Influencer-In-Chief: Candid, passionate, blunt, not afraid of controversy—resonates on social media, especially with youth.

• Authenticity: Seen as transparent, wild, and honest, a necessary force to enact drastic reforms.

• Chainsaw Analogy:

  (Agustin, 24:23): “Maybe we need somebody wild to cut taxes, because it’s not possible to cut taxes like a Swiss surgeon, you need somebody with a chainsaw.”

• Mistakes Acknowledged: Rapid reforms come with errors, but boldness trumps incrementalism at this juncture.

7. The Battle of Ideas: Austrian Economics and Popular Culture ([30:45])

• Milei’s Intellectual Roots: Studied under Alberto Benegas Lynch (Libertad y Progreso); had an “awakening” upon reading Austrian works.

  • (Agustin, 30:45): “He said… he had been teaching bad economics until he discovered the ideas of the Austrian School... When he discovered the ideas, he’s like a fanatic…”

• Cultural Communication: Combines serious economics with rockstar flair—concerts, theater shows destroying the central bank (with a hammer!), using memes, appealing to youth.
• Parallel to Ron Paul: Emulates how Ron Paul catalyzed a decentralized, youth-driven movement via digital platforms ([34:14], [36:00]).
• Bitcoin & Tech: Argentina’s crisis spurred early crypto adoption and tech-forward attitudes among young people.

8. Understanding the New Economy: Austrian Insights on Exponential Change

• Beyond GDP: New wealth is being created through technology in ways conventional economics struggles to measure.
• Hayekian Catalactics: Emphasis on exchange processes—value, cooperation, and wealth creation in the digital era ([39:46], [40:45]).
• Argentina’s New Role: Rich in rare earths, energy, and poised to become a player in AI infrastructure ([40:45]).

9. Austrian Economics Reading List ([44:44])

• For Beginners and Policymakers:
  • The Road to Serfdom – Friedrich Hayek
  • Economics in One Lesson – Henry Hazlitt
  • I, Pencil (essay) – Leonard Read
  • Atlas Shrugged and The Fountainhead – Ayn Rand (hugely influential among Argentine youth)
  • Human Action – Ludwig von Mises (advanced but foundational)
  • Principles of Economics – Carl Menger
  • Juan Bautista Alberdi – Early Argentine liberal philosopher

10. Foundation’s Outreach and Educational Work ([48:49])

• Media Engagement: Traditional and social media, simplified economic messages.
• Creative Campaigns: Viral videos (“Freedom for Bananas”), humor and illustration to show stifling regulation.
• Targeted Communication: Adapting messaging for TikTok, Instagram, Facebook, X (Twitter)—making liberty go viral.
• Roadshow Focus: Touring Argentina to push labor, pension, and tax reforms (Agustin’s mission in next 6 months).

Notable Quotes & Memorable Moments

• “The power of ideas is what’s changing Argentina right now.”
  — Agustin Etchebarne ([04:09])

• “He’s quite a character… maybe we need someone wild to cut taxes… He comes with a chainsaw.”
  — Agustin Etchebarne ([24:23])

• On Milei’s reforms:
  “By cutting expenditures, what happens is exactly the opposite that Lord Keynes would say, because… the economy made a recovery in a V-shaped recovery.”
  — Agustin Etchebarne ([09:09])

• “Argentina is doing things much faster… we’re not coming from communism, which is maybe even worse than Peronism… not much, but a little bit harder than Peronism.”
  — Agustin Etchebarne ([24:23])

• “If you have a necessity, you have a right. That’s the most stupid thing that you can think of … you can destroy a whole civilization with these little words.”
  — Agustin Etchebarne ([44:54])

• “Maybe old people like us don’t like the manners. He has not British manners, of course. But he’s quite a character… authentic, honest, courageous, and wild.”
  — Agustin Etchebarne ([24:23])

Timestamps for Key Segments

• Introduction & Guest Background: [00:00] – [03:53]
• State of Argentine Politics & Milei’s Rise: [03:53] – [08:49]
• Milei’s Reforms and Impact on Economy: [09:09] – [13:30]
• What’s Next? Reforms & Political Power: [13:40] – [18:39]
• Popular Support & Cultural Change: [18:39] – [23:14]
• Milei as a Political Influencer: [24:23] – [27:37]
• Peronism vs. Free-Market Models: [27:18] – [30:45]
• The Roots of Milei’s Austrianism: [30:45] – [34:38]
• Making Ideas Accessible & Pop Culture: [34:38] – [36:31]
• Digital Economy & Hayekian Process: [39:46] – [44:44]
• Reading Recommendations: [44:44] – [48:49]
• Foundation’s Educational Initiatives: [48:49] – [51:15]

Final Thoughts

This episode captures the transformative moment in Argentina where decades of statism and hyperinflation have given way to a new free-market revolution. Milei’s bold leadership style, openness about tough reforms, and mastery of both high theory and pop communication have made him a uniquely potent advocate for Austrian economics to a new generation. Etchebarne provides insightful background on the intellectual and practical roots of the movement and highlights the critical importance of making substantive ideas accessible and viral for “the liberty curious.”