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We guaranteed benefits for the elderly -- we told those people who had already retired that they had nothing to fear from this reform. We also told people entering the labor force for the first time that they had to go to the new system.
Today, all workers in Chile are capitalists, because their money is invested in the stock market. And they also understand that if government tomorrow were to create the conditions for inflation, they would be damaged because some of the money is also invested in bonds -- around 60%. So the whole working population of Chile has a vested interest in sound economic policies and a pro-market, pro-private-enterprise environment.
Chile went from one of the poorest countries in the Hemisphere to the cusp of developed status and the highest per capita income in South America in the span of 30 years. All it took was a right wing general usurping power from a commie.
The Left seeking revenge sought to make the dying days of this admirable man a living hell because they couldn't bear the fact that he was successful in turning Chile around through capitalism.
Careful with extending the Chilean example. Chile has a distinct economic advantage: the have one of the world's largest deposits of copper and the state takes 15% of all sales. It's effectively their version of oil. What they have managed to do is use this resource for the common good rather than enrich a well-connected few.
Careful with extending the Chilean example. Chile has a distinct economic advantage: the have one of the world's largest deposits of copper and the state takes 15% of all sales. It's effectively their version of oil. What they have managed to do is use this resource for the common good rather than enrich a well-connected few.
It is also because they don't have rampant corruption throughout the government. Our government is far more corrupt than theirs, and definitely more free market. Chile is on the cusp for development status, despite having such a huge, devastating earthquake. Had this happened in Mexico, Peru, or anywhere else, half the capital city would be in rubble. I won't be surprised if, one day, Chile surpasses Spain in terms of human development
It is also because they don't have rampant corruption throughout the government. Our government is far more corrupt than theirs, and definitely more free market. Chile is on the cusp for development status, despite having such a huge, devastating earthquake. Had this happened in Mexico, Peru, or anywhere else, half the capital city would be in rubble. I won't be surprised if, one day, Chile surpasses Spain in terms of human development
According to Transparancy International, which measures corruption, Chile's CPI score is 7.2 (on a 10 point scale), while the U.S. is 7.1. Not quite "our government is far more corrupt". Overall Chile and the U.S. rank comparably with Western Europe and North America. Notably, Chile is heads and shoulders above the rest of Latin America, especially countries with comparable resources like Venezuela.
According to Transparancy International, which measures corruption, Chile's CPI score is 7.2 (on a 10 point scale), while the U.S. is 7.1. Not quite "our government is far more corrupt". Overall Chile and the U.S. rank comparably with Western Europe and North America. Notably, Chile is heads and shoulders above the rest of Latin America, especially countries with comparable resources like Venezuela.
Our government is far more corrupt than what the data says. Many people agree. Our government is about as bad as Italy. We just hide it better and have better propaganda
An interesting quote about keeping funds in reserve...
Quote:
The government’s decision to save so much of the copper windfall was not popular at the time. But “being a Keynesian means being one in both parts of the cycle,” Mr Velasco says. His approval ratings in opinion polls have leapt over the past few months, as have those of his boss, Michelle Bachelet, Chile’s president. The ruling centre-left Concertación coalition, which has been in power since 1990 and had been looking tired, now has a chance in a presidential election next December it had seemed certain to lose. Good policy can sometimes be good politics.
Keynesianism failed in the US because of its misapplication by liberals and conservatives; it was not a conceptual failure. You gotta be one in good and bad times. That is a very wise point of view, Mr. Velasco with the economy to prove it.
How is the voluntary aspect any different than Cantor suggested other than Chili kept the old system in place while implementing the new. Cantor's plan phases out SS enrollment after more than 15 years and no one on it or near collecting now would be affected.
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