Chile Praised in the Financial Times

"Wealth brings changing priorities" is the title of this special report on Chile in Financial Times (October 4, 2011). Sure, there has been a lot of unrest by leftist activists this year. To outsiders, that fact probably seems curious for the wealthiest, least corrupt and most stable country in the region.

The report claims that the free market economy of Chile has been working fine. There is indeed no doubt about it. "You can't argue with success." The problem is that people are getting wealthier and, as such, have begun to demand more social services. In order words, Marxists now have too much free time on their hands. I wish they would just shut up and go back to work but at least we can be content that they are prospering so much that they can take time out to stretch their legs and protest.

"Since 1990, Chile has reduced poverty from 42 per cent to 15 per cent of the population." That is a remarkable testament to what capitalism coupled with the rule of law can do! Of course the rich have gotten really rich over that same period, far outstripping gains by the poor. But who cares? Life is far better now for everyone in Chile. I hope we gain ten more billionaires this year. What country would you rather live in: one with three billionaires or one with fifty?

Economic growth has been clipping along at 8% this year after showing 5% in 2010. That is impressive. You should come down here from the economic doldrums where you live just to feel and remember what it is like to be in a bustling, booming economic situation.

It is so "bad" here that my wealthy clients come down and cannot always find an apartment. And you thought that escaping from America would be easy? Apartments are all renting so fast based on overwhelming demand. And there is no lack of cranes in Santiago creating an ever-growing supply of new apartments. It leaves one wondering where the people are getting all the money needed to buy these units.

It is an interesting economic phenomenon that people who have a good life are never satisfied with what they have. They always want more. And so it is in Chile. All the good jobs, low unemployment, plethora of educational opportunities, rising social status at home and abroad, greater domestic and foreign travel potential, better incomes and overall better quality of life and fueling greater uneasiness than ever before.

It is simply wonderful to see. At some point, the Marxists and leftists will tire of what they are doing and maybe end up being ignored altogether. They are like spoiled children in a Bel-Air who are complaining that their classmates have better candy and toys than they do. I mean this place is booming for everyone despite the fact that less than two years have passed since a massive 8.8 earthquake and tsunami devastated much of the country. Isn't that remarkable?

The leftists are also envious and upset since they were wrong and the more libertarian minded folks were right. Their leader Allende would have brought incredible disaster upon Chile (even worse than it was under him in 1973) and they hate to admit it. Instead they have the serendipity of living with the benefits of their archenemy, capitalism. Chile has now joined the elite group of OECD "rich" countries while its far more Marxist neighbors languish is relative poverty, corruption and stagnation. Anyone need a comparison study? Chile can stack up against any country in the Western Hemisphere.

The Financial Times report even goes so far as to call Chile "The Switzerland of Latin America." I think that sentiment may be going a bit too far in some ways, but Chile certainly does have a strong currency and solid banking system (insofar as fiat systems go, that is). There are plenty of banks and insurance companies, but the fees are high, suggesting a lack of competition or the presence of over-regulation. It is not a bad place to store precious metals, if you can qualify for a safe deposit box that is. Overall, there is still room for improvement in a good overall system that works well.

Chile is fiscally conservative for sure, maybe even better than Switzerland, since it has no national debt to speak of (and even has billions in backup cash stashed around the world). Chile leads all OECD countries in private spending on education, too: another plus. That means Chileans prefer market alternatives to state provision. The leftist radicals simply hate that fact. They want free public university education, even though there is evidence that primary and secondary "free" public education has been a disaster. Thankfully, most Chileans are wiser than Marxist dolts.

The report notes that: "the recent protests are more emblematic of Chile's successes than its failures." So when you hear of skirmishes and discord in Chile from time to time remember that quotation. It rings true to all of us enjoying living in a free market-leaning place with little violent crime and corruption, coupled with widely appreciated conservative social values. As the article states: "the critics of Chile's democratic free market model are wrong."

There's still plenty of room down here. Hope you can make it in before the walls start caving in around you while you are holed up in your quasi-socialist and fast-becoming-fascist nirvana.

     Sovereign Man is about to launch its resilient community in Chile. Do you want to be a part of it? If Chile is on your radar screen, perhaps you should check out the residency program which I offer. Go to www.chile-consulting.cl and view the entries at bottom center or send an email tojcobin@offshoreadvisorygroup.com and I will send the program links directly to you. I will be talking about the program with Simon Black's teleconference regarding the resilient community on November 30, 2011 at 1 p.m. EST.
     Dr. Cobin’s book, Life in Chile: A Former American’s Guide for Newcomers, is the most comprehensive treatise on Chilean life ever written, designed to help newcomers get settled in Chile. He covers almost ever topic imaginable for immigrants. This knowledge is applied in his valet consulting service, where he guides expatriates through the process of finding a place to live and settle in Chile, helping them glide over the speed bumps that they would otherwise face in getting their visas, setting up businesses, buying real estate, investing in Chilean stocks or gold coins, etc. The cost is $49.
     Dr. Cobin’s sequel book, Expatriates to Chile: Topics for Living, adds even further depth on important topics to expatriates who either live in Chile already or who have Chile on the short list of countries where they hope to immigrate. The book deals with crucial issues pertaining to urban and rural real estate transactions, natural disasters, issues pertaining to emigration and its urgency, money and the quality of life, medical care and insurance, business opportunities, social manifestations (including welfare state and divorce policy concerns), Chile in the freedom indices, social maladies (lying, cheating, stealing and murder), as well as discussion of a few places worth visiting and some further comments about Santiago. Note: If the link to buy the book at SovereignMan.com does not appear, just send US$39 by PayPal to jcobin@policyofliberty.net and send an email or PayPal notice that you have completed your order.     


Buy Dr. Cobin’s Public Policy books at Amazon.com:
Christian Theology of Public Policy: Highlighting the American Experience (2006)Bible and Government: Public Policy from a Christian Perspective (2003)A Primer on Modern Themes in Free Market Economics and Policy (2009)