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Jun 18 · Last update 2 mo. ago.

Was Chile’s Economic Miracle a lie?

Chile is often quoted as a success story of open market capitalism, with famous free-market proponent Milton Friedman describing the Chile's free market as paving the way for a free society. The turn around of Chile’s economic policy in the 70s and 80s was largely due to the input of a group of Chilean economists dubbed the “Chicago Boys”, as they had studied economics at the University of Chicago under Friedman and Arnold Harberger. However some economists have pushed back against this, arguing against the outcomes of the role of economic liberalism in Chile and the description of these policies as an economic miracle. So what is the story of Chile’s economic miracle? Is the standard narrative of the success of Chile’s economic miracle fraudulent? Or is there misunderstanding surround this period of Chile’s economic history? pbs.org/wgbh/commandingheights/shared/minitext/int_miltonfriedman.html#10
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No, but the word miracle makes it misleading…
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No, but the word miracle makes it misleading…

Chile’s economic miracle did happen, but to leave it there is to skip over the relevance of this part of Chile’s history. Chile’s economic miracle should be depicted as a solidification of corporate power not a benefit to Chileans as a whole, professor C.B. Macpherson of the University of Toronto objected to Friedman’s take on free-market liberalism and Chile is a perfect example of this. Macpherson argued that political freedom actually came before economic freedom, and the ones to initially benefit from this economic freedom were property owning elites, who used their new-found political freedom in their own interests, opening the doors to unrestrained capitalism. The current protests in Chile are perfect evidence of this, people are massively dissatisfied as although the economy has grown since Pinochet inequality is rampant, with half of what is traded on Chile’s stock exchange is controlled by only four families.

aljazeera.com/indepth/features/2013/11/other-side-chile-economic-miracle-201311159282210130.html jstor.org/stable/3231503?seq=1

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D H
Jun 18
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