I read economic commentary as much as I can. One interesting piece recently came my way by Stephen Moore. It was about the fall of Chile and what it means to America. I think we are about half way there.
Back in the 1970’s Chile incorporated free-market economic reforms. The government was advised by the Chicago Boys, as they were called. Led by Milton Friedman and other free-market economists, they were given free hand to redesign the Chilean economic system with property rights, a low flat tax, privatization of the Social Security system, and industry deregulation.
Of course for four decades, the experiment worked better than anyone could have imagined. Between 1975 and 2015 (an eye blink of history), per capita income quadrupled to $23,000, the highest rate in Latin America. From the early 1980s, poverty fell from 45% to 8%. Chile became one of the wealthiest nations in South America.
Now read very carefully. The Marxists and intellectual class in Latin America always hated the free-market reforms. They called the Chicago Boys fascists. They spent decades attacking the policies (with the American media support), even as Chile became the crown jewel of South America.
The Marxists invented a narrative of “inequality.” The rich were getting richer, the poor were getting poorer, and capitalism is evil. Marxists infiltrated all of Chile’s cultural institutions; the media, schools, universities, the Catholic Church, the arts, the unions and even CORPORATE BOARDROOMS! The spread collectivism to the populace.
Eventually the leftists pulled off a political coup. In 2013 the left won the Chilean presidency. The free market reforms were systematically replaced with “spread the wealth.” In October 2020, voters approved rewriting the constitution, and now property rights and rule of law are in danger.
Chile is now in economic free fall. The poor are getting crushed. The rich are pulling their money out of the country. They have arrived at “equality.” Nearly everyone is suffering.
In America we have an economic transformation. The Biden administration is handing out trillions of dollars of free money to citizens and in many cases paying them more money for not working than working. We will borrow trillions of dollars and pray the Chinese continue to buy up our bonds and that our currency holds up.
And in the end, the sock-it-to-the-rich tax increase is coming that will make the productive class and job creators pay their “fair share” with tax rates of 50%, 60%, and 70%. Folks, the big lie that nobody making less than $400,000 will not pay one cent more in taxes. That is bullsheet and we all know it. Do you think the taxes paid by corporations and business are not going to be passed on to the consumer? True, you will not be “taxed,” but the result is the same. Higher prices for everything.
And President Biden is so weak as a leader the Chinese are making fun of his leadership and selection of his cabinet as a collection of lightweights, not having experience in what they are tasked to do. The recent agreement between Iran and China for cooperation of creating nuclear weapons and missile technology is a prime example of how weak they see Biden. His frail physical appearance and cognitive disabilities and dementia is apparent and getting worse by the week.
Vice President Kamala Harris is speaking to world leaders instead of the president, that is troubling and indicative she will soon take up the leadership of the country. The change could take place soon.
God help us. We have an unqualified and unaccomplished president, 48 years of not one significant achievement, and a true Marxist vice president. It’s going to be a long, long, 45 months left until the next election.
The rotting of America from within continues…