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The decades since the fall of the Berlin Wall have been, from a freedom perspective, largely disheartening. Since then, the West has ideologically drifted far from its foundations. Up to that point, it had adhered more or less steadfastly to the principles for which it was admired worldwide: individual freedom, private property, free enterprise, endless opportunities, market economy, and freedom of expression.

However, soon after the socialist competition behind the Iron Curtain collapsed, this commitment began to wane. Gradually, paternalism, overregulation, paternalistic governance, dirigisme, planned economic elements, state control, and surveillance crept in.

Genuine freedom has become a rare commodity in Western countries. On paper, these countries may still appear freer than others, such as the BRICS nations, let alone Cuba, Venezuela, or North Korea. Yet the absolute level of freedom has been systematically eroded over the past decades – slice by slice.

Today, only shattered fragments of the Free World remain. The state has seized control over virtually all areas of life, disempowering individuals. Values like personal responsibility, voluntary solidarity, frugality, and private provision have eroded.

Then, out of nowhere, libertarian presidential candidate Javier Milei won Argentina’s election, sending shockwaves across the globe. About a century ago, Argentina was one of the world’s wealthiest nations, as the saying «rich as an Argentinian» reminds us.

But socialist policies thoroughly destroyed it, proving once again that a bloated state does not create wealth but destroys it. If Western nations continue down the misguided path they embarked upon after the fall of the Berlin Wall, this would be the tragic fate of all of them.

Milei, a proponent of the Austrian School of Economics, inspired by thinkers like Ludwig von Mises and Murray Rothbard, understands that the state is not the solution but the problem. Since taking office, he has moved swiftly to free Argentina from the burden of excessive regulation and fiscal greed. One of his first acts in office was to reduce the number of ministries from 21 to 9. Under Milei, Argentina’s budget has been balanced for the first time in years, thanks to a resolute austerity program.

This shift has eliminated the need to fund previously high government expenditures by «printing money» through the central bank, which has curbed rampant hyperinflation. From a monthly rate of 25.5 percent in December 2023, inflation dropped to «just» 4.6 percent by June.

Milei’s deregulation agenda is delivering results. One example among many: In December 2023, he eliminated rent controls and dismantled housing regulations. As a result, the supply of rental housing surged by an impressive 212 percent year-over-year, while average rental prices fell by 26.6 percent.

What Argentina do we in the West take as a model? The one of the past decades, which failed spectacularly and led to poverty and misery? If so, we need to do nothing – just let statists in all parties continue their course.

Or do we look to post-2023 Argentina as a model, aiming to become the freest country in the world by closing a significant portion of government institutions, dismantling harmful regulations, slashing taxes, and instilling new hope in its population?

It seems more and more people in the West are waking up to the realization that we are on the wrong path. Signs are increasing that we may be at the dawn of a turning point. At least this impression could be gained from recent global developments:

• In the US, Elon Musk and Vivek Ramaswamy are planning to lead the new Department of Government Efficiency (DOGE), cutting $2 trillion in government spending.
• In Germany, the eco-socialist coalition government collapsed after angering many Germans with its policy of excessive state intervention and a reckless deindustrialization agenda. Will this lead to a reversal of this ideological misstep and possibly a new «economic miracle»?
• Liechtenstein abolished public broadcasting through a referendum, implementing a more liberal media policy.

Clearly, enormous challenges lie ahead, and there is still much work to be done. Yet the signs are accumulating that the pendulum, which has swung for decades toward state expansion, overregulation, and interventionism, might finally be starting to swing back.

This article was published on Finews.ch.