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March 04, 2010

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Cristian Rojas

The second chart was Krugman's last point. The first chart shows the Pinochet's period 1973-1989 and this is the period Krugman is talking about. Most of the growth in Chile has happened after the country recovered it's democracy and the government's economic policies started to move to the center left. One telling statistic is that in 1989 about 40% of the population lived under the poverty line, currently this figure is about 13%.

Mr. Econotarian

Of course there also was a precipitous decrease in Chilean GDP from 1970-1973 during a period of democracy...

Some people argue that even without Pinochet, Chile would have still become the most economically free Latin American country today, despite its brief non-majority democratic election of a hard-core Socialist. But we'll never know.

I think we will have to see how Chavez ends up to see whether democracy in Latin America can truly suffer a hard-core socialist. Will he still be in power 10 years from now, or will he be democratically defeated?

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The battle of ideas is not won or lost in Congress, or even in elections, but in the long assessment of history. Just ask Qeng Ho.

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Most of the advance in Chile has happened afterwards the country recovered it's capitalism and the government's bread-and-butter behavior started to move to the centermost left.

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well if we look back in the economy history of Chile, we will notice a common pattern, their economy is not that constant, they have had lows and ups throughout history, so what is happening now it's normal!

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