Capitalism on Trial in Chile

To agree with other commentators . . . Ms Taub's understanding of "the Cold War" and of the Department of Economics at the University of Chicago is extremely crude. And note the way that she quickly passes over the "center left" governments of Michelle Bachelet (whose second term as president ended just last year) and its failure to roll "neoliberalism" back ought to make listeners very suspicious. The situation in Chile is, to be sure, extremely sad, but this segment does not get at the underlying factors.

Big The Daily fan! - this particular episode felt somewhat myopic. I wonder if some additional data could help supplement the reporting: 1) At around 16:04 "it's true that the country's economy was growing but a lot of those gains were accruing to the very rich. Middle class Chileans, poor Chileans were not seeing their lives improve." - How does this claim fit alongside the fact that poverty rates in Chile declined 4x since 2000 (according to World Bank: https://data.worldbank.org/country/chile)? What other measures of quality of life should we look at to evaluate the wellbeing of middle and low class populations over time? 2) And around 16:12: "The consequences of this plan were poverty for a lot of Chile's elderly." - Is this issue that poverty rates among the elderly increased after these policies (do you have data on the rate over time?) or is the issue that we would think poverty rates among the elderly could be lower for a country that's experienced such economic growth? I believe the distinction here is important. 3) Interestingly, there's a 40% gap between the average income in Chile and Chile's GDP, compared to only a 5% gap in the US (just based on a cursory Google search of median income and GDP, correct me if I'm wrong). This is genuinely concerning. How might a government better distribute wealth without crippling the economic growth that has allowed for declining poverty and unemployment rates? (https://tradingeconomics.com/chile/unemployment-rate)

This episode of your excellent podcast series was disappointing, simplistic and subjective (And too often the narrative was interrupted by ambient sound and sound bites that did little or nothing to add to the story). To suggest that capitalism is on trial is an overstatement. Capitalism comes in many varieties, from free-market neoliberalism to Swiss, Nordic and German forms of capitalism that successfully combine high living standards and economic growth with government regulation and universal healthcare. As another reader (Jason) stated: "The true villains are corruption and selfishness by Chile's political and societal elites." Brazil has also been plagued by widespread corruption. We should have heard from critics as well as supporters of the angry crowds of demonstrators on the streets of Chile's cities.

Dear Daily Team, I love your podcast but I have to take you to task for forgetting (?) important facts in this episode. 1. The US really has to begin to finally fully own what it did in South America. The US government did not just "support a coup" but the coup against Allende was *instigated* by the CIA, after Nixon "made the Chilean economy scream". This is documented. The US overthrew the democratically elected leader and replaced him with a dictator. 2. It is laudable you tell of the Human Rights abuses right after the coup, but you fail to mention the systematic regime of torture that extended over the entire period of the dictatorship, tens of thousands of people. There were two truth commissions in this regard. 3. it is dismaying to see the terms capitalism and neoliberalism interchangeable; they are not. I have lived in the US, the UK and in Chile, and nowhere is the system as brutal as in Chile. On top of the lack of any social security system - any middle class member is just one accident or disease away from poverty - there are the social wounds left by the dictatorship, such as dehumanization of the opponent as worthless, distrust of your fellow citizens. A government declaring "war" on its citizens, military tanks in the street - that isn't normal! Thank you for including Victor Jara! The governments and media may paper over history, but Chileans know that their dream of a more just society was brutally taken from them, and they did not forget.

The Daily is saying the situation of Chile half way or they don't see the real situation and dig more. When they talked of Pinochet and the American interference in Chile, they don,t say that Allende's communist government (that was elected in democracy)was with the highest inflation of the world in that time, had to do long lines and couldn't find nothing to buy in the markets. Meanwhile in the region, Peru had a socialist Dictatorship, Argentina with the continuous coups , Bolivia with dictatorship from right that eliminated leader Che Guevara, Colombia in democracy fighting against its guerrilla, Uruguay with the Tupamarus ruling . US interference comes when a shipment to Chile of weapons and tanks from the USSR was on the way. The Chicago boys change the economy of Chile and didn't work well for many years, Chilean economy started to rise by the end of the 80's.Problem is that the following presidents didn't do adjustments in its economy for the benefit of its people. The corrupted politicians,the selfishness of corporations and the Chileans elites are the ones who benefit from the economy. About the protests in the streets, the majority are peaceful, pushed by socialists, but many coordinated by gangs, destroying buildings , business and subways in 3 days, were supported by Bolivarians groups (coming from Venezuela) in Chile. This groups are all around South America, in Bolivia are being deported after former president Morales took asylum.

I’m deeply disappointed with the lack of accuracy shown in the episode regarding the crisis in Chile. There were peaceful demonstrations against the government that were ver uplifting and promising, but the reporter forgot or avoided to mention that the reason for the government to put the military in the streets was to stop the looting and burning of supermarkets, churches, buildings, etc. that happened in the poor neighborhood of many cities. The common citizens was stuck between the violence from the “encapuchados” and the military. The encapuchados (cowardly covering their faces) destroyed our cities and use peaceful protests as a shield/cameos. The military went crazy on everybody, even people that have nothing to do burning and destroying things. I’m not taking sides here, but I think it is important to clarify that: -the encapuchados are a small but ver violent destructive group that is not representative of the general protesters. (Interestingly not mentioned in the podcast) - military in the street started as an attempt to stop the looting and destruction done by encapuchados - many people subjected to the violence from this 2 groups. If the reporter needs more information I have videos that showed the looting and destruction. I think the information is a great tool and the reporter should be ashamed for trying to use it with such bias... just like Pinochet did during his awful dictatorship. Funny how she does the very same thing that she preaches against.

Just a damning look at US foreign policy and the havoc that it has wrought under the mantle of spreading democracy. I wept as I listened to the account of torture and execution of activists and artists when Pinochet was installed by the US. America's lack of historicity and incessant focus on US means that we (US citizens) don't make the connection between historical US interests and current events, at home and abroad. The other article I read recently that gave me a similar sense of horror was the one in the LA Times about the Marshall Islands, where we did nuclear testing in the 50's and dumped our nuclear waste. We destroyed a paradise, and ruined their home. They are still suffering the effects.

No matter how many job applications and interviews he has been on, my friend, who once oversaw a department of over 200 people, and lost his job as a result of the financial crash in 2008, who is brilliant, who graduated from a prestigious school, who is willing to do any job at all, the ‘Amazon Mechanical Turk’ described in a NYT article today, below, is the only ‘job’ he has been able to get to make .any. money at all. He has no more savings to live on. He quietly lives in his elderly father’s unheated attic in New Hampshire. His father won’t feed him because he thinks it will be ‘enabling’ him... I am the only one of his lifelong friends, including his fraternity brothers, who knows how desperate his life is. Neoliberalism has failed us too. Enough is enough. Bernie2020

I read in your newsletter recently that you didn't plan on following the impeachment all the time. That was when I canceled the newsletter. My first thought was that you might find that decision a mistake later. I care about all of the people south of San Ysidro, from Mexico to the Mato Grosso, but at this hour, this day, history is being made in the District of Columbia, North America. I wish you were there.

When any group of people is coddled and spoon fed by government, continuously referred to as "ordinary" and told that their menial labor is just as deserving of wealth as that of those who have spent years in school or risked everything for entrepreneurial endeavors,..they will eventually develop a self pity that easily ignites into envy and violence if the proverbial nurturing tit is even slightly pulled from their wanting mouths. This conflict, like many others past, is the result of adults being treated like children and promised unsustainable goodies, free of charge.

"Staggering inequality " ? Chile's GINI Coefficient (though high) is below many other countries in the region - Mexico, Costa Rica, Brazil, for example, are all higher. These protests are likely more against an entrenched, unresponsive government (like in Bolivia or Venezuela) than any particular economic system.

I have lived in Chile for 7 years, and the last month has been heartbreaking. I wish she would have mentioned more all of the looting and arson that is happening alongside the peaceful protests. It's so sad to see libraries burned and historical buildings ransacked. While I think neoliberal policies are an important part of the story, I think there are other forces at work as well. The reasons for the protests are as varied as the protestors. I have heard people talking about many issues, from Climate Change to quality of education to abortion rights to just BURN THE STATE. It's easy to pick out the narrative that you want to tell. To make matters more complex, I doubt that most of these protestors voted in the last election. And I have my doubts they will vote in the next one. The only thing that seems to join all the protestors is a complete lack of faith in politics. Not mere dissatisfaction, but a complete political nihilism that can only be expressed by violence and destruction. I am hoping that Chileans will have the faith necessary to create a new Constitution, but I am skeptical. What I think is as equally powerful here as free market policies is the lack of real social bonds in Chile between different classes of Chileans, a terrible hangover of Spanish colonialism. I keep hearing the words of Simon Bolivar when he wrote long ago that Latin America is ungovernable and that those who attempt it merely plow the ocean. I hope he was wrong.

Thanks to the team who created today's clear, chilling report of the fallout from US Cold War foreign policy and the exportation of supply-side economics to Chile. This episode of The Daily should be required listening for all Americans.

Clearly, the people of Chile are suffering and it’s totally unacceptable. This reporting is important but it took a subjective turn at 21:47. The final statements in this piece represent a classic example of inductive reasoning. Amanda, when you said, “Chile took those ideas and ran with them” were you implying that political corruption and a non-existent social safety net were included in those ideas? The characterization of capitalism as the main villain is irrational. Capitalism has its warts but it’s the best—or least bad—system we’ve got. The true villains are corruption and selfishness by Chile's political and societal elites. Russia has a similar story. You can't blame capitalism for Chile's woes, no more than you can blame the Titanic ship for hitting an iceberg. The people at the helm were responsible. Michael Mandelbaum’s 2002 book, The Ideas That Conquered The World, provides a nice articulation on this point. Lastly, despite my criticism of the last minute of reporting in this episode, I do love The Daily podcast and appreciate all the hard work that goes into it. Thank you.