Capitalism in Chile Derailed

Chile is now moving back into the Latin American Socialist camp. This tax reform involves increasing the corporate tax rate, reducing tax incentives, all in the name of helping the children by giving them free education. Chile was the only country in South America with any promise, and it now seems to be slipping away like everything else in the Americas. I am sure that this will be the first of many tax bills that will slowly destroy the pro-businesses policies that have made Chile the only prosperous capitalist nation in South America. Pity.

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About fafc

The goal of the “Find a Free Country Project” is to research, explore and find a safe and secure free country outside the USA, that is not too large, has a relatively open immigration policy, has a friendly business climate, has a non-intrusive government committed to freedom, and then move to it.
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18 Responses to Capitalism in Chile Derailed

  1. Croatian Capitalist says:

    It’s sad, but unfortunately it is also expected, the Chilean economy was originally ruined by the democratically elected socialist Allende, and capitalism was only introduced because of the military coup led by Pinochet, after which he brought the best Chilean economists back from the USA and let them run the economy.

    • fafc says:

      I guess the only place left in the Americas for an American to go and have a tiny bit of freedom is Belize. And that is no paradise. I was there 12 years ago and it was nice, but since then it has turned into a giant festering sore (but there are still some nice enclaves). Oddly enough, as Belize bows and scrapes to the USA it only gets worse for poor little Belize. They keep hoping to get some scraps from the master’s table, but all they get is a kick.

  2. Croatian Capitalist says:

    What about Canada, specifically Alberta?

    • fafc says:

      If America goes bad, I can’t see Canada being too far behind. It is already a Muslim paradise. Canada depends upon foreign immigration, and most of that is coming from Muslims. Alberta is just a target. When you combine the old guard Leftists and the newly arrived Muslim immigrants Canada does not seem like such a safe place IMHO.

  3. Croatian Capitalist says:

    According to this, the three biggest sources of (permanent) immigrants to Canada are China (not counting Taiwan, Macao and Hong Kong), India (which does have a large Muslim population, but I would still guess that the majority of the immigrants from India are Hindu) and the Philippines, the only Muslim-majority countries in the top 10 are Pakistan and Iran (and many who leave Iran are atheists/agnostics, Christians and nominal Muslims who soon after leaving Iran convert to Christianity (, all in all, there are around 7 millions immigrants in Canada and a little over a million Muslims overall, but Islam is the fastest growing religion in Canada:

    • fafc says:

      Canada may be a convenient option for Americans who don’t want to learn a new language, and hope to blend in, but I don’t think it is a safe option. Canada is a weak country dependent upon a strong USA. The fact that it has fallen into a profound political correctness combined with a supine attitude to Muslims and other anti-social elements is not heartwarming. Plus Canadians hate Americans, and the government bureaucrats are mostly radical far Left activists even i the politics is turning more conservative.

  4. Croatian Capitalist says:

    Yes, I guess that moving from the USA to Canada doesn’t make much sense, and besides, as far as English-speaking countries go, I think Ireland, Australia and New Zealand are all better options than Canada.

  5. Croatian Capitalist says:

    It is about to get derailed further:

    “We need to build a solidarity system that doesn’t leave all responsibilities to the individual and that abandons them when they’re left behind,” Bachelet said.

    Chile will soon once again be a typical Latin American country.

  6. Croatian Capitalist says:

    Doesn’t William Hill offer odds on such things…?

    • fafc says:

      Maybe. The problem with that is timing. Most gambling is much more time sensitive than investing. If I say Chile is going to turn into a socialist Latin American shithole, there will usually be a time frame involved with the bet. If I am wrong by a matter of months, years, or decades I lose the bet. Investing on the other hand usually rewards patience over timing. So if I think Georgia is going to become a more prosperous place in the future, if I am wrong about the timing but right about the concept I simply need to survive to benefit.

  7. Croatian Capitalist says:

    Well, if something doesn’t change soon, I don’t think we will have to wait long for Chile to revert to the Latin American norm…, as well, it will be interesting to see what the Americans and Europeans who move there in search of green(er) pastures will do when that happens.

    As for Georgia, if it continues on it’s pro-market course and doesn’t join the EU, then it’s only a matter of time before it becomes a rich country, but perhaps even more importantly, it is far away from the most likely trouble hot-spots of the future (the USA, Germany, Sweden, the UK, France, etc.)…

  8. Croatian Capitalist says:

    In any case, since the direction Chile is heading in is obvious, I think it is now safe to rule out any country south of the Rio Grande as an emigration destination.

  9. Croatian Capitalist says:

    Even ignoring the obvious socialist tendances of the average Chilean, I think that another reason why it would be a good idea to avoid Chile is the fact that it is one of the countries where serious natural disasters happen the most often.

  10. Croatian Capitalist says:

    The elections in Chile in November (and possibly December if there is a runoff) will probably be the make it or brake it elections for Chile.

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