Buenos Aires, Argentina — The political landscape in Argentina is undergoing a significant transformation, particularly in light of recent economic policies implemented by libertarian President Javier Milei. As import restrictions were lifted, luxury car dealerships on the northern bank of the Riachuelo River have reported a notable surge in sales. Meanwhile, the bustling streets of the Puerto Madero financial district are filled with bankers who commend Milei's decision to end a prolonged ban on online dollar sales. Upscale restaurants are thriving, catering to Argentine oil executives who are enthusiastic about the government's efforts to attract foreign investment.
However, the situation is starkly different just a short distance away. On the opposite bank of the polluted Riachuelo, Veronica Leguizamon, a 34-year-old mother, finds herself struggling to put food on the table. With only a few eggs, a carton of milk, and a handful of bread rolls left in her pantry, she recently braved heavy rain to collect dinner for her four daughters from a local soup kitchen—an unfortunate new routine since Milei drastically reduced subsidies for public services and dismantled price controls on essential foods. “Before, we could choose what to cook,” she lamented. “Now we depend on others to know if we’ll eat or not.”
The contrasting realities of these neighborhoods, located less than a kilometer apart, highlight the deep divisions within the Argentine electorate as they prepare for nationwide congressional midterm elections. Voters' differing economic perceptions will play a crucial role in determining the future of Milei’s administration, as well as whether the Trump administration will continue its financial support for Argentina, a key ideological ally.
“Within my little circle, everyone’s happy with how things are going,” said Fernanda Díaz, 42, who owns a yacht rental business in Puerto Madero. “But when I step outside it, I see people worried about making it to the end of the month.”
Milei's opposition has raised concerns in the financial markets. Recently, U.S. President Donald Trump issued a warning, threatening to rescind a $20 billion aid package for Argentina if Milei loses to a “socialist or communist” opponent. This statement caused a sell-off in Argentine markets, as Trump appeared to reference Argentina's populist ideological movement known as Peronism, which has been blamed for the economic turmoil Milei inherited in late 2023. Reckless public spending under previous Peronist administrations, including that of former President Cristina Fernández de Kirchner, who is currently under house arrest for corruption, has contributed to Argentina's notorious inflation rates and sovereign debt crises.
“We needed a major change,” Díaz reflected, recalling her previous job loss as a top executive when Chilean retail group Falabella closed its Argentine operations due to high inflation and import restrictions. “I voted for Milei’s government and was really enthusiastic at first.” Markets have reacted sharply to the prospect of a Peronist return. Following the Peronist coalition's victory over Milei’s party in the recent Buenos Aires provincial elections, investors panicked, fearing for the future of Milei's free-market reforms.
In an unusual move, the U.S. Treasury intervened by selling dollars to meet surging demand, establishing a $20 billion credit line and securing an additional $20 billion in aid from private banks. Each announcement from the Trump administration led to a surge in asset values. Having narrowly avoided a currency crisis, Milei and his supporters briefly celebrated. “I’m proud of the U.S. support. It helps us grow stronger,” said Luciano Naredo, a high-end car salesman in Puerto Madero. “I think Argentina is finally taking its rightful place in the world.”
Despite Isla Maciel historically being a stronghold for Peronism, a surprising 42% of the wider Avellaneda municipality voted for Milei in the last presidential election. Many residents hoped that the unconventional politician would stabilize the economy and curb the rampant triple-digit inflation. Wielding a chainsaw at campaign rallies, Milei promised to cut government jobs, reduce state spending, and use foreign exchange reserves to maintain the depreciating peso. While inflation has decreased—fulfilling one of his key campaign promises—purchasing power has also plummeted.
With inflation hovering above 30% annually, residents of Isla Maciel have witnessed the value of their wages, pensions, and welfare payments diminish. “You can’t live on 290,000 pesos a month with today’s inflation,” lamented Epifanía Contreras, 64, as she filled her bowl with rice and peas at the Foundation of Isla Maciel soup kitchen, referring to her $200 monthly pension. “The situation is getting worse and worse. It’s not fair.”
Volunteers at the soup kitchen have reported a doubling in demand over the past year, as individuals who once only occasionally sought meals now rely on them for survival. “People are coming out of real need,” said volunteer cook Maria Gomez. “It’s total chaos.” The support for Milei’s libertarian party has waned, with a third fewer residents backing him in last month’s provincial elections, as nostalgia for the redistributive policies of the Peronist party grows despite its recent reputation for financial mismanagement.
As Milei continues to assert his commitment to his austerity measures, the symbol of his campaign—a chainsaw—has not been seen in public for months. With many Argentines feeling the weight of economic uncertainty, the upcoming elections will be critical. Polls indicate a tight contest between Milei’s La Libertad Avanza (Liberty Advances) party and the Peronist coalition. A total of 127 seats in Argentina’s lower house and 24 in the Senate are up for grabs, making this election pivotal for Milei’s future.
Currently controlling less than 15% of Congress, Milei's government last passed a law in March. His party aims to secure enough seats to protect austerity measures, maintain presidential vetoes, and implement labor and tax reforms. The potential consequences of a defeat for Milei could lead to increased pressure on the peso, further currency devaluation, and a rise in inflation, jeopardizing the president’s most significant accomplishments to date. As a result, weary Argentines are once again preparing for a turbulent political landscape. “Each new government comes in, criticizes the last one, promises to do things differently and ends up being the same or worse,” lamented Matías Paredes, a 50-year-old real estate broker. “This country moves in cycles.”
