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17.05.2019 (124 days ago)
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Side by side, Venezuela and Chile, compared in video
by Greystarfish1 ·
17-May-2019, 8:25 pm

The link is at .

I shared this on my Facebook page. I tagged my friend, Msc Cyrthel Sotto of Viña del mar, Chile. She was at Multiply and Facebook.

This is my post comment. "I totally agree. Socialism and Communism have failed everywhere, they have been tried.  Venezuela should learn from Chile."

This is Msc Cyrthel Sotto post reply. "Msc Cyrthel Sotto Thank you, my dear Teresa .... A great truth that we live in Chile. Today we have overcome that horrible moment, we walk in freedom towards a prosperous and happy future of a lesson learned with pain. May we never again see our America subjected to the yoke of socialism-communism. "

I totally agree with her. The article includes a video.  

Side by side, Venezuela and Chile, compared in video

Economist Steve Hanke has found a terrific video treasure on Twitter from El Cato, the Spanish-language branch of the Cato Institute, comparing and contrasting the development arcs of Chile and Venezuela. Here it is:



The video is in Spanish but don't worry if you don't speak the language, you don't need it in this one. Just turn the sound down and watch the powerful photos and graphics.

The bright beauty of Santiago, Chile is shown in stark contrast to the filthy hellhole Caracas, Venezuela, has become. You can see the grainy, dark, dank dirty inhuman cementiness of that city - which has been so familiar to us in photos it sometimes goes unnoted, with the normality contrast that Santiago provides. This gives us a good whiff abou how far Venezuela has fallen through socialism. There are charts with data, such as this one below, showing how the countries have switched places over the last few decades.

Why did the countries switch places on the development scale - so spectacularly directly? Look - it's almost a straight line up and a straight line down. Why did the countries switch places on the development scale in such an unmistakeably straight line?

Image credit: El Cato // Twitter screen grab

Well, because Venezuela took the express train to socialism, and Chile embraced free markets.

Once upon a time, Chile was the country that was the socialist dump, in the early 1970s it was literally a vassal state of Cuba's Fidel Castro, who came down to that country under the regime of then-President Salvador Allende, and barked orders. That Castrofication, as well as a long baseline history of soft socialism before Castro showed up in the decades earlier- a long soggy socialist slide - made Chile the country that was the hellhole.

Now it's Venezuela. And by the wildest coincidence, Venezuela, has embraced the ame Castro and all his minions, getting the exact same result.

The uplifting element of the video is that Chile didn't stay a dump.

Chile all by itself embraced free markets. It didn't have any American invasion or nation-builders in the works for it (cripes, when this happened, Jimmy Carter was president in the states), Chile actually did the whole thing itself. 

And far from being a U.S. model, or imitation, Chile's embrace of free markets was quite organic, it done at approximately the same time Ronald Reagan and Margaret Thatcher were freeing up the U.S. and U.K. economies, so nobody was under anyone's tutelage at the time. One of the most striking things about it was that Elliott Abrams, who worked at the State Department at the time as the Latin American point man, was actually working to thwart it, based on a backward-looking argument about human rights violations in the country under the constitutionally authorized (same as Juan Guaido in Venezuela) Pinochet military government. It kind of gives reason for doubt to see Abrams at the helm in the U.S. again over Venezuela given his inability to understand how Chile dug out of its socialist morass. 

Armed only with a group of young economists schooled in economist Milton Friedman's free market economic philosophy, Chile cut spending, stabilized its currency, got its massive socialist debt paid off, cut taxes, threw out thousands of leftist regulations (some of which had that lefty-we-know-what's-good-for-you-odor, such as the one that prohibited new vineyards from being planted as a means of combating alcoholism), installed unilateral free trade (letting every nation have free trade from its end even if they were charging tariffs on their own, which took guts to do), and most importantly, set itself up for investment and prosperity by initiating the world-famous Chilean Model, the system of private pension savings that works so much better than America's Prussian-Model Social Security system, which is going broke.

Jose Pinera was the young economist who, with great difficulty, set up that revolutionary model, which turned out to be a runaway success, copied by every nation that has decided it doesn't want to have an unfunded pension liability problem - and any nation that wants to have money spent for nice things like roads and bridges (without having to beg the Chinese to build them on their own terms).

I've been to both Chile and Venezuela and the difference couldn't be more startling. Chile looks like a classy version of what California could or would be, minus its Mexican PRI-style "perfect dictatorship" (as Mario Vargas Llosa once put it) socialism. The Chilean roads are beautiful, the subway is efficient, the stores are full of beautiful things to buy (I still want to go back and buy more stuff there!) and the corruption is nil.

Venezuela by contrast is a hellhole of chaos, dilapidated, noisy, graffiti-strewn, full of crooks at every turn, empty store shelves, long lines to buy scarce goods, and utterly miserable.

Both countries embraced socialism, each at the bottom ends of their scales on the charts. But Chile also stands as a model for how Venezuela can get out of its socialist morass once it gets the dictatorship out of there. There isn't much hope for persuading Alexandria Ocasio-Cortez or Bernie Sanders of the importance of rejecting socialism from these charts but it could help educate Millennials, who get nothing like this in their schooling. One can also hope that Abrams doesn't interfere with the embrace of free markets as he did in Chile -- because Chile really does have the solution for how to fix Venezuela down the road. El Cato's video shows it.







Economist Steve Hanke has found a terrific video treasure on Twitter from El Cato, the Spanish-language branch of the Cato Institute, comparing and contrasting the development arcs of Chile and Venezuela. Here it is:

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  •  cosmicrat: 

    Interesting you should pick Chile as a comparison, the very example of what should never happen to Venezuela, or any other country-- a US-engineered coup resulting in a long-term repressive and murderous military dictatorship.  Chile has recovered from that, but never should have been subjected to it.

    Military dictatorship of Chile (1973–1990)

    The many thousands of deaths, tortures, and exiles during the Pinochet regime can be blamed directly on Nixon and Kissinger.  It was one of the worst, but hardly the only instance of US direct interference in smaller nations' governments.  That needs to stop.  The US has the economic power to make or break a smaller nation's economy.  Use of that power also needs to stop.

    Let the people work out their own politics and preferred economic systems.  The US is not a good example.  Every economy that properly serves its people needs a mixture of capitalism and socialism.  Several governments have found the right balance.  Ours still needs work.

     123 days ago 
    0 points
  •  SecretCorners: 

    Humans are incentives based creatures.  When you take the incentives away, then the result is that everyone will move to the lowest level.  For example; if everyone can only make a certain wage no matter how hard you work, then everyone will work at the lowest level because there are no incentives to work at a higher level.  If you are not going to make any more money, why should you bust your arse?  If you are not going to profit from an invention, then why invent?  If you then bring in victim groups; which means there are oppression groups, then you get the conditions for class warfare that results in millions dying.

     124 days ago·2 replies2 replies 
    0 points
    •  Greystarfish1: 

      {#}   Secret Corners, You nailed it.

       124 days ago 
      0 points
    •  VeroMariquita: 


       124 days ago 
      0 points
Side by side, Venezuela and Chile, compared in video