Pinochet ran his country into the ground by listening to free-marketeers

Discussion in 'History & Past Politicians' started by Small_government_caligula, Apr 26, 2014.

  1. Small_government_caligula

    Small_government_caligula Banned

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    One of the great right-wing Big Lies (there are many) is "Chile's economic miracle", in which neoliberal and "free-market" reforms were enacted under the military dictator Augusto Pinochet and are said to have ushered in a new era of capitalism and prosperity which the US would do well to follow today. They say this to justify the fact that Pinochet's government was one based on sheer force, brutality and murder, not consent...but I'm not here to talk about his crimes.

    Anyways, Chile had a major banking crisis in 1982 brought on by years of following Milton Friedman, Friedrich Hayek and the Chicago Boys' neoliberal economic policies. What did Pinochet do? He kicked out the Chicago Boys and brought in new people. He nationalized multiple banks. The succeeding governments were center-left ones which cut poverty by increasing social spending 210%, increasing the minimum wage, and across-the-board tax increases. So whenever a rightie tells you about how much of a "success story" Chile under Pinochet was, be sure to point out to them that they are referencing economic policies from the 1970s which were largely abandoned because they were terrible and didn't work.
     
  2. Steady Pie

    Steady Pie Well-Known Member Past Donor

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    I have no interest in results. I'm concerned with just conduct. Hence why I have little time for Friedman - his means are quite agreeable, but our ends are quite different. He desires liberty as a means to prosperity, and is therefore only a step away from totalitarianism. His proposal of a basic income is a decent example.

    Don't get me wrong, I like the guy - he opened me up and pushed me from left to right, he's a great communicator - but I don't feel much of an affinity with his position. I'm not concerned with prosperity, I couldn't care less about the direction society and the economy takes - I am concerned above all with my own conduct.
     
  3. martin76

    martin76 New Member

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    Chile is not in the "ground"... maybe Brazil or Argentine.. but not Chile, one of the most developed countries in America.
     
  4. Small_government_caligula

    Small_government_caligula Banned

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    Yeah, now it is, thanks to what governments after 1982 did.
     
  5. martin76

    martin76 New Member

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    Ok, But I think 1982 Pinochet was in govermnet in Chile... by other side.. What did it change in 1982?

    Regards
     
  6. Small_government_caligula

    Small_government_caligula Banned

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    He kicked out the Chicago Boys and the free-marketeers, brought in new economic advisers, he nationalized banks, increased social spending, raised the minimum wage etc.
     
  7. martin76

    martin76 New Member

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    Thanks, I didnĀ“t know. So, Chile is one of highest development country in America, and in part is dued to Pinochet and the different governments in democracy.
     
  8. waltky

    waltky Well-Known Member

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    Is Chile coming out from the shadow of Pinochet?
    [​IMG]

    Is Pinochet's shadow over Chile beginning to recede?
    12 Sept.`18 - It's been 45 years since Pinochet took power. While some view the leader positively, others search for the disappeared.
     
  9. kazenatsu

    kazenatsu Well-Known Member

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    Free market economists put the blame for the banking crisis on Pinochet's decision in 1979 to depart from free floating exchange rates.
     
    Last edited: Sep 12, 2018
  10. Scott

    Scott Well-Known Member

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    Last edited: Sep 28, 2018

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