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(en) Czech, afed: Chile: experimental laboratory of neoliberalism -- The richest country in Latin America is crushed by abysmal social disparities. People rebel. [machine translation]

Date Tue, 29 Oct 2019 09:09:16 +0200


Chile is the pride of neoliberalism. For many years, all Klaus and Joch have been behaving like an honest model, a "free" pearl in that Latin American filth. It is precisely those economics experts who have recently wanted to privatize our oxygen, and today we are haunted by the Islamization, greening and feminization of Europe. To this day, financial portals are praising: Chile has the lowest taxes on OECD countries. Chile is a haven for employers. But beside the glass quotes of financial districts, cardboard shacks rot, the number of slums in Santiago has doubled since 2011. Chilean gross domestic product is rising to dizzying heights and has been unprecedentedly moving away from the Latin American average for thirty years. We all know it from work. As far as prosperity is concerned, shifts are prolonged, work increases, holidays do not take place and salaries remain the same. When it fails, the wage is reduced, forced holidays, unpaid leave, or straight off.

The commodity-distorted pension system has resulted in pension alms not covering even basic living needs. Millions of people do not have access to proper health care or education. These institutions have practically become a privilege for the rich. Access to drinking and non-potable water also requires high costs, as water resources and water supply are in the hands of private speculators. Equally, the energy sector is dominated by foreign corporations. The experimental laboratory of neoliberalism plunged this Latin American country into scandalous inequality, where practically the entire middle class lives on the edge of poverty. The income of a very large class of declassified is around 3200 CZK per month. About half of the population has to make do with 12,600 CZK per month, while the cost of living in Santiago is the highest of Latin America and exceeds Prague.

The building of paradise began under August Pinochet. Yes. When neoliberal conservatives talk about freedom, they mean the freedom of corporations to buy up competition, build monopolies, cough on labor law and the environment, the military junta doesn't mind. Subsequent three democratic governments continued the set line. The social cabinet came with cosmetics and the conservative, and the richest Chilan Pi ñ era was perfectly crowned with his arrogance and spectacular superiority.

Laboratory building

The Chilean neoliberal experiment conducted by Chicago economists through the fascist Pinochet dictatorship became the standard later applied by Reagan and Thatcher in the West. For the right, Chile has become a textbook example of all the benefits of capitalism. In 1982, Milton Friedman declared that the military junta "pushed for a complete free market economy. Chile is an economic miracle. "[Elton Rayack,Not So Free to Choose , p. 37]During his visit to Chile in 1990, US President George Bush praised this economic model as worthy of following.

But the capitalist miracle perfectly exploits all the "benefits" of a class-separated society. It meant a dramatic deterioration in living conditions for workers. The reason why workers were subjected to a neoliberal experiment here is simple. They had no choice. General Pinochet was the leader of the military coup drafted in 1973 against the democratically elected government of Salvador Allende. The coup culminated in years of American interference in Chilean politics, which began long before the advent of the Marxist Allende, whose administration was not long lasting. Richard Nixon imposed a total embargo on the ground. In the words of the then US ambassador, "we will do everything in our power to condemn the Chileans to maximum poverty."[Noam Chomsky,Deterring Democracy , p. 395]

In addition to the free-market agenda, Pinochet came up with a final solution to turn the progressive workers' movement once and for all. According to very sober estimates, "in the first year in power killed 11,000 people".[P. Gunson, A. Thompson, G. Chamberlain,The Dictionary of Contemporary Politics of South America , p. 228]Military troops launched an operation called The Caravan of Death and threw themselves into the persecution of anyone suspected of sympathy to the left. Torture and rape became a mundane norm, and those who were not secretly eliminated were dropped from the aircraft as a warning to potential opponents of the regime. Today, official statistics refer to 40,018 victims.

The role of the Chicago boys during the coup cannot be underestimated. They have maintained strong ties with the army since 1972 and played a key role during the coup. "In August 1972, a group of ten economists led by Sergio de Castro began working on an economic program that would replace Allende's vision... "The Chicago Boys, Social Security and Welfare in Chile",The Radical Right and the Welfare State , Howard Glennerster and James Midgley (eds.), P. 88]

In spite of all the hymns, the capitalist miracle had great flaws, which have tossed it to this day. The wild introduction of free market ideas immediately triggered a financial crisis. GDP fell by 12.9% in one year, while the rest of Latin America grew by 3.8%. Wages dropped freely by uncontrolled fall until they stopped at 64.9% of 1970 wages. Unemployment rose to 20%. Even Pinochet was staring that "the social costs of shock treatment were higher than he expected".[Elton Rayack,Not So Free to Choose56, 41 and 57]After the crisis ceased, growth of about six years followed. It was at this time that the economic miracle began to be spoken, but the growth period was replaced by another crisis, much more painful than the last. Government debt, unemployment and bankruptcies have risen dramatically. This time it was time for a proven but very non-market rescue package of taxpayers' money. Even the much-praised free-market economy has never been completely free-market. Without state rescue operations, it would have collapsed long ago.

Multinational banks "were redeemed by the government, which spent $ 6 billion (30% of GDP!) On saving them during 1983-1985, while being subjected to strict government regulation to ensure their solvency. Foreign investment has also been subject to regulation. "[Collins and Lear, Chile's Free-Market Miracle: A Second Look , p. 42]After the capitalist economy was rescued, leaving only workers to work with their bare butts, another round of privatization began. Pinochet's neoliberal reforms are still valid today. This neoliberal experiment, still praised by corporate and public media, is an economic disaster from start to finish.

A paradise for whom?

If ultimately there was no miracle, why was Chile glorified by people like Friedman? Because conservatives and neo-liberals have always dug for the richest class, and precisely this class is the highest in the neoliberal military junta. Indeed, no bourgeois democracy can push through as thorough privatization as a dictatorship. As long as the neoliberal model showed profits, the rich were stuffing their pockets when they went bankrupt, all casualties paid by ordinary people. Capitalism simply serves a narrow group of privileged, while societies are harmful. Fifteen years after the introduction of free-market reforms, the Chilans' wages were still lower and unemployment higher than in 1970. Half of the country's population lived in poverty. This refutes another myth of neo-liberals and all sorts of chairmen of employers' unions, who continually claim that unemployment increases are also increasing wages.

After decades of neoliberal experimentation, the Chileans rely on jobs that promise no stability, are poorly paid, usually temporary, or are in the informal economy. Most of the new jobs created after 1982-1983 were seasonal work, characterized by low wages, long working hours and instability. Many Chillans worked for more than 48 hours per week without compensation. This also scared the screenwriters of the system. "Unpaid overtime remains a serious problem. It is commonly assumed that employees will work longer without remuneration, which is reminiscent of the European model of the nineteenth century. "[Collins and Lear," Working in Chile's Free Market, "pp. 22-25]growth. Statistics from the 1990s say that "productivity growth outperformed real wage growth of 3: 1 in 1993 and 5: 1 in 1997 '.[Volker Frank, "Politics without Policy," p. 73]

Privatization of the pension system and health care, as we all know, was and is a total disaster. Interestingly, the bureaucratic cadres, the army and the police were excluded. They had their own generous social system, market solution was implemented only for the mob. As part of the privatization of the pension system, 'workers' savings in the form of social security contributions were transferred from the public to the private sector, where they served as a source of investment. Given the oligarchic concentration of wealth and corporate dominance under Pinochet, this meant passing on forced labor savings to the most powerful Chilean capitalists.[Winn, "The Pinochet Era", pp. 31 and 64]Only 20% of taxpayers received adequate pensions. The same goes for healthcare. In 1990, private health care was only available to 15% of Chileans, 75% of which were high-income taxpayers. There is a three-phase health system in Chile. A well funded state-run police and military system, a luxurious private system for the elite, and a "grossly under-funded, neglected, overloaded system for 70% of the Chileans".[Collins and Lear, ibid., Pp. 99 and 246]

In a nutshell. In 1972, Chile was the second straightest country in Latin America, while in 2002 it became the second country with the highest inequality in the region.[Winn, "The Pinochet Era," p. 56]. This refutes further crap by the elite to this day, claiming that the more capitalist a country is, the less inequality it suffers. As in the United Kingdom and the United States, the countries that used Friedman's ideas, inequality increased dramatically in Chile. The implementation of his ideas thus refuted his own claims.

Burning, my doll!

This October, the government announced a 3% increase in metro fares, which caused a massive boycott by students in the form of skipping turnstiles. The government responded by granting an exemption to students, but they continued to protest in solidarity with their loved ones. An arrogant, professional, aggressive campaign for political class and mass media began. The threat of cruel punishment allowed by the laws of August Pinochet led to a revolt spreading into the streets where other people were involved. The threat of violence by the state provoked violence of the dissatisfied. People began to precisely demolish turnstiles, ticket machines, collectively pulling the emergency brakes. Whole stations were ashes, as were bus stops and buses. Soon a police station, known as the hatchery of corruption and brutality, came to the headquarters of the Italian energy concern Enel, supermarkets and of course government buildings. After a few days, three quarters of the metro network were demolished, a total of 85 stations.

Protests spread completely spontaneously without coordinated mobilizations. We are witnessing a crowd of self-confident action by people tired of decades of exploitation of the coarsest grain. People leave their workplaces, homes, universities, march through metropolises with empty pots and spoons to the throbbing rhythm of the samba, making it clear that they will not be miserable by the ruling class. Like the economy, the cops are still soaked in the structure of the Pinochet regime, they are absolutely clueless, and, as many videos have shown, they are burning sharp with the crowd. A state of emergency was declared and ten thousand soldiers were called to pacify protests with a great deal of brutality. Social media as well as foreign news are blocked. To date, eighteen dead, dozens of missing and thousands of rebels and rebels in police cells have been registered. Pinochet legislation threatens them with twenty years of punishment. Anarchists call for international solidarity. This legitimate and courageous fight undoubtedly deserves it. Millions of people have remained behind the gates of the capitalist paradise, and are no longer willing to watch the powerful abound in wealth, wringed out of the hard work of the unprivileged.

Sources:
https://freedomnews.org.uk/what-is-happening-in-chile/
https://theanarchistlibrary.org/library/afaq-c#toc45
https://en.wikipedia.org/wiki/Economy_of_Chile #Economic_policies
https://en.wikipedia.org/wiki/Index_of_Economic_Freedom
https://en.wikipedia.org/wiki/Augusto_Pinochet
https://www.theguardian.com/world/chile

https://www.afed.cz/text/7057/chile-pokusna-laborator-neoliberalismu
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