Javier Milei won the Argentinian presidential election by a landslide on the promise of cutting the government, and, unlike American presidential candidates, he actually followed up on his promise and cut eight different ministries, 30,000 government jobs, and reduced government spending by 30%. For the first time in years, Argentina has a budget surplus, and the inflation seems to be getting under control.
One of the first things President Milei did was eliminating rent control in Argentina, and then something fascinating happened: the supply of available apartments surged. Owners who had previously pulled units off the market came back. Investors re-entered. Developers stopped running from the regulatory maze.
And the result? Market rents actually fell — not because of a government cap, but because supply finally met demand.
Meanwhile, in cities like Los Angeles, New York, and Boston, we continue doubling down on rigid rent caps, surcharges, and “tenant protection” rules that actually reduce the number of homes available while our building regulations make it difficult and costly to build new housing that could deliver more units to the market, thus creating scarcity. And then the same government acts surprised when prices rise, and then that same government comes to the “rescue” and imposes rent controls, which drive even more investors out of the market, deepening the scarcity.
So, how is it possible that a former musician with no formal political or economic training was able to get the market basics and managed to do it in less than two years, while our city officials with Harvard degrees and millions spent on economic consultants can’t figure it out for decades? Or is it intentional? If you keep creating the mess and convince everybody around you that you are the only messiah who can resolve this mess, dumb masses who are not used to thinking on their own keep eating off your hand and don’t question the obvious stupidity of the proposition.
I would rather see Javier Milei run Los Angeles and California than Newsome and Bass, who, 11 months after the LA fires, still can’t get it right with permits and debris clearing (just one example!). This utter failure to help LA Fire victims is either intentional or a result of complete incompetence, no other explanation, but should either of these excuses still allow a person like this to remain in power?
The Argentina case isn’t a perfect blueprint for the U.S., but it does highlight a truth our cities keep ignoring:
- Instead of restricting prices, concentrate on higher supply, and the market will take care of the pricing
- Instead of fighting the market, we should be unleashing it.
- Instead of punishing providers, we should be partnering with them.
- Instead of imposing new layers of rent regulations, laser-focus on building more homes at every income level.
Just get out of the way, and let the market take care of itself. Because the last time I checked, the USA was still a “Market Economy”. Doesn’t feel like it in California, I know, but maybe Newsome and Bass should take the basic civic test and see if they pass it, or maybe they should take a trip to Argentina and learn a thing or two from a man who does what he promises?
If Argentina could do it, we could too. We just need different leaders who have the courage to do what the Founding Fathers proposed to do in the first place – smaller government serving the people.
Alex Lisnevsky