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The New Social Contract

December 10, 2023 - Buenos Aires, Argentina


As I stood among the crowd of jubilant supporters at the Congress building, I couldn't help but be swept up in the infectious energy of the moment. The air was thick with excitement and anticipation as Javier Milei, the world's first libertarian president, was about to be sworn into office.

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capitol building, Milei inauguation
The day prior, setting-up for the inauguration (asunción)

The day of inauguration - the crowd spans well passed the statue on the right of the photo


 

The crowd was a sea of Argentine flags and stuffed lions, symbols of the nation's pride and the new president's bold vision. Many people had their faces painted and were wearing shirts with statements from Milei’s campaign printed on them, and dogs had bandanas of Milei’s 'anarcho-capitalist' black-and-yellow flags, a testament to the passion and devotion they felt for their new leader. It was clear that Milei had captured the hearts and minds of the people, promising a new era of freedom and prosperity for Argentina.


As a foreigner, I couldn't help but be impressed by the sheer enthusiasm of the crowd. The enthusiastic chants of "Freedom!" (libertad) and “chainsaw!” echoed through the streets, a powerful reminder of the change that was about to sweep through the country. I could feel the hope and optimism radiating from the people around me, and I couldn't help but wonder if this was the beginning of a new chapter in Argentina's history.


In his address to the people, President Milei laid out the New Social Contract and dove-into the long history of decadence and economic decline; his plan was to put an abrupt end to it all, and bring Argentina back to a thriving country like it was 100 years prior. His speech did not point fingers, but it did point to policies that created economic problems that have gripped Argentina for a century.


…they embraced the impoverishing ideas of Collectivism, for more than 100 years politicians have insisted on defending a model that only generates poverty, stagnation and misery. A model that considers that citizens are there to serve politics and not that politics, exists to serve the citizens. A model that considers that the task of a politician is to direct the lives of individuals in all possible areas. A model that considers the State as a spoil of war, to be distributed among friends. Gentlemen, that model has failed..”

He broke down the causation and correlation, in succint-yet-technical explanations like only an Austrian Economics PhD economist could: that the continuous printing of money to fund and subsidize government ministries, as well as provide handouts, is what has caused severe inflation and plunged the economy into crisis.


“…the sentimental progressive proposal, whose only source of financing is money printing will end in hyperinflation, which will lead the country to the worst crisis in its history..”
“Sadly, I have to tell you again
we... have... no... money...” (no. hay. plata.)

...offering solutions of stopping the printing of money and removing the overreach of government, in order to let the people of Argentina take control over their lives and gain financial freedom once again.


“The way out of poverty is freedom.”

And he was honest; he stated that this won't happen overnight. It's going to take a couple of years before the changes are felt systemically (since decicions made the day prior by the old presidency would take about 24 months to be fully felt).


“Even though the beginning will be hard. We know that, in the short term, the situation will worsen, but then we see the fruits of our efforts having created the foundations for solid and sustainable growth over time…It won't be easy, 100 years of failure are not undone in a day. But one day, it begins, and today... is... that... day...”

He embraced unity of all the people of Argentina and stood with unwavering convictions of the future fight for his country.


“..All those political union and business leaders who want to join the New Argentina [...] we welcome them with open arms. So, it doesn't matter where they come from, it doesn't matter what they have done before, the only thing that matters is where they want to go. Those who want to use violence or extortion to block change. We tell them that they are going to meet a President with unwavering convictions who will use all the resources of the State to advance the changes that our country needs. We will not give up. We will not go back. We will not surrender. We will move forward with the changes that the country needs because we are sure, that embracing the ideas of freedom is the only way…”

The crowd chanted

"Milei, dear, the people are with you"

As the ceremony came to a close and President Milei took the oath of office, the crowd erupted in a thunderous cheer. I watched in awe as the people of Argentina celebrated the dawn of a new era, one that promised to bring radical change and a brighter future for all. He signed the presidential book alongside his VP, and added "Long Live Liberty, Damnit!" (viva la libertad carajo).


I then watched Milei walk the street from Congress to Casa Rosada, and along the way, he greeted and shook hands with the citizens of his countrymen. He also abruptly stopped his motorcade to greet an adorable golden retriever in the crowd! Dogs are great judges of a person’s character, or so I’ve heard.


Click the photo for more info on his love for dogs!

The hope and optimism was tangible within the crowd. I also did not see any protestors, there was one isolated incident of an extremely drunk Peronist man that threw a large glass bottle that was very close to seriously injuring Milei's head (and rockin' Elvis hairdo). Aside from that, I saw no crime/unlawful events take place, which is quite impressive given the controversial event, and how things are going in other countries with protests. A group of proclaimed libertarians even pre-planned and brought their own trash bags, to stay after the ceremony to pick up trash left behind at the Congress Plaza. Props to them!


In conclusion, the inauguration of President Javier Milei marked a significant shift in Argentina's political landscape. The new president's unconventional approach and bold economic policies have garnered both support and controversy. The initial reactions to his inaugural address highlight the expectations and concerns of the people. I also cannot help but be hopeful that the world is watching and that a shift will take place not just in Argentina, but on the global platform as well. President Milei's inauguration has the potential to inspire other nations to consider alternative economic models and political ideologies.


Most crucially in December 2023, President Javier Milei's New Social Contract is undoubtedly a rejection of Rousseauian theories that insist citizens have a duty to their government, and individuals have some sort of obligation to deprioritize individual liberties over the 'needs' of 'The State.' In Rousseau's The Social Contract (1762, du contrat social), he "seeks to address: how can we be free and live together? Or, put another way, how can we live together without succumbing to the force and coercion of others? We can do so, Rousseau maintains, by submitting our individual, particular wills to the collective or general will" (para. 29). https://iep.utm.edu/soc-cont/#SH2c


How do people submit to the "collective," exactly? Just by being born, and continuing to reside in a certain jurisdiction: "Rousseau says that commands issued by the day-to-day rulers will properly appear the same as the general will of the populace as long as the people are silent and do not oppose the commands. He says that once the state is founded, residency implies consent to the regime. 'To live in a country means to submit to its sovereignty.' Here, as in previous thinkers' writings, the open-ended concept of tacit consent when it is reduced to brute facticity is the same as being under a government's control" (191). https://cdn.mises.org/1_3_3_0.pdf


But how does a baby consent to the Social Contract? And for those who have no financial or other means to move to a different jurisdiction, how can they consent if their residency isn't a choice? Thus erodes the erroneous Social Contract of Rousseau. For Libertarians like Javier Milei, the New Social Contract must be one where the only purpose of the State is to safeguard individual liberties:


"This new social contract proposes a different country - a country in which the state does not direct our lives, but ensure our rights" (Milei, 10Dec2023). Milei's Classical Liberalism allows the State, as he quotes Professor Alberto Benegas Lynch Jr, to ensure an "irrestrictive respect for the life-long project of others, based on the principle of non-aggression, in defense of the right to life, freedom and property, whose fundamental institutions are private property and markets, free from State intervention, free competition, division of labor and social cooperation" (Milei 10Dec2023).


Only time will tell if President Milei's policies will lead Argentina to a new era of prosperity, or further uncertainty. This is the link to the video of Javier Milei’s speech to the people with English subtitles.



 

¡VIVA LA LIBERTAD, CARAJO!


Credit: @mmarcos__


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