> The post-coup economy in Chile was not so spectactular.
Yes it was. Keep in mind, the price of copper favoured Chile during Allende and disfavoured Pinochet--and it was, as we say, "el sueldo (salary) de Chile." I don't see what's wrong with the loan--Chile paid it back in full--and really, you're cherry picking when it comes to dates after the coup.
At the center of the argument is the question: does spending less and taxing less work? Keep in mind, the tax regime, to this day, is almost identical to what it was in the eighties (very low), and now Chile is the only country in the region in the OECD.
You have a lot of excuses for why the post-coup economy had problems - the price of copper changed, currency was pegged to the dollar (and who decided that policy?)
Chile's GDP in 1969 was 7 billion. 1970 Allende becomes president it is 8 billion. 1971 its 9 billion. 1972 its 10 billion. 1973, the year of the coup its 11 billion. Then 1974: 16 billion, 1975: 15 billion, 1976: 7 billion, 1977: 9 billion. It was 3.5 billion less in 1976 then it has been in 1972 under Allende. So then it runs up and begins descending again. 1984 19.8 billion, 1985 19.2 billion, 1986 16.5 billion, 1987 17.7 billion.
Going from 11.5 billion in 1972 to 16.5 billion in 1986, 17.7 billion in 1987 is not all that impressive.
From 1994 to 2010, under left wing governments, Chile's GDP grew by $124 billion to $172 billion.
This notion that the coup transformed the Chilean economy for the better was at its height (in the U.S. as well) in 1982 - right before the crash, which needed a multi-billion dollar IMF loan/bailout. The story you're telling sounded better 31 years ago, before that big crash.
The tax regime barely changed in that time. Sales tax went from 18% to 19%...they added a 3% royalty on something metal-related...I think that was about it. That answers the "tax less" part of the question.
You are saying that the economic policy of twenty years of socialist government, under which the majority of the growth of the Chilean economy actually occurred, had more or less the same tax and spend policy as envisioned by Pinochet. Pull the other one, it has bells on.
Yes it was. Keep in mind, the price of copper favoured Chile during Allende and disfavoured Pinochet--and it was, as we say, "el sueldo (salary) de Chile." I don't see what's wrong with the loan--Chile paid it back in full--and really, you're cherry picking when it comes to dates after the coup.
At the center of the argument is the question: does spending less and taxing less work? Keep in mind, the tax regime, to this day, is almost identical to what it was in the eighties (very low), and now Chile is the only country in the region in the OECD.