Miracle of Chile

The Miracle of Chile (1973-1983) is a phrase, coined by Milton Friedman, to describe the economics of Chile under Augusto Pinochet. Critics also use this in a sarcastic fashion, "Cinderella's pumpkin did not really turn into a coach. The Miracle of Chile is just another fairy tale." (1 -- p.72) Pinochet launched an era of economic deregulation and privatization. Critics often note that the unemployment rate increased from 4.3% in 1973, to 22% in 1983. Meanwhile, real wages would decline by 40%. Pinochet promised to "make Chile not a nation of proletarians, but a nation of entrepreneurs". In doing so, Pinochet would abolish the minimum wage, outlaw trade union rights, privatize the pension system, state industries, banks; and abolish taxes on wealth and profits. The US State Department would state, "Chile is a casebook study in sound economic management."

References