Argentine President Javier Milei has presented Elon Musk, advisor to U.S. President Donald Trump, with a chainsaw engraved with the phrase “Viva la libertad, carajo” . This gesture, made during the Conservative Political Action Conference in Maryland, underscores Milei’s commitment to reducing government bureaucracy and spending.
Milei, a libertarian economist, has become known for his dramatic use of a chainsaw during political rallies, symbolizing his intent to “cut” through excessive government expenditure. Since assuming office in December 2023, his administration has implemented stringent austerity measures, resulting in a 30% reduction in public spending and the dismissal of approximately 36,000 public sector employees. These actions have also led to the elimination of various subsidies, aiming to streamline Argentina’s economic framework.
Under Milei’s leadership, Argentina has witnessed a significant decline in its inflation rate. In January 2025, the country’s monthly inflation rate slowed to 2.2%, the lowest since mid-2020. The annual inflation rate also decreased to 84.5% in January, a substantial drop from 117.8% in December 2024. This downward trend is attributed to Milei’s orthodox economic policies, focusing on achieving fiscal and trade surpluses to combat the previously rampant triple-digit inflation.
Elon Musk, serving as the head of the newly established Department of Government Efficiency in President Trump’s administration, has been advocating for similar reductions in government spending in the United States. At the CPAC event, Musk brandished the gifted chainsaw, declaring it a tool to combat bureaucracy. His efforts have already led to significant budget cuts across various sectors, including the termination of 6,000 employees at the Internal Revenue Service.
Musk’s dramatic presentation at CPAC, where he appeared in a “Dark MAGA” outfit while wielding the chainsaw, was met with enthusiastic support from the conservative audience. He emphasized the necessity of eliminating wasteful government spending and streamlining operations, aligning with Milei’s approach in Argentina.
The collaboration between Milei and Musk highlights a growing trend among certain political leaders to adopt aggressive strategies in reducing government size and expenditure. While supporters argue that these measures are essential for economic stability and growth, critics express concern over potential negative impacts on public services and employment.