Tuesday, October 29, 2019

The Theft of a Nation by Milton Friedman and the Chicago Boys





The nation is called Chile.
A country which had one of the
better living standards in Latin America.
But many lived in poverty.

So President Slavador Allende
nationalized the largest
copper mine in the world,
so everyone might have a better life.

But Washington didn’t like that.
So, almost all financial aid was cut off,
and military officers were spoken to
about altering the political climate.

Then, a nation which never had a military coup,
had a military coup.
Salvador Allende and thousands more
were murdered, tortured, or imprisoned.

General Augusto Pinochet took over,
and had a talk with Nobel Peace Prize winner
Milton Friedman who taught at the University of Chicago.
Friedman said Chile needed the shock treatment.

Friedman’s Chilean students
carried out the shock treatment.
They came from affluent families
and became known as the Chicago Boys.

They cut back on all public spending,
except the military.
They allowed corporations to operate
free of government interference.

On Wall Street they called it a miracle.
President George Bush called it an
“economic model” which
“inspires the hemisphere.”

One million acres of native forest were cut down.
The ecology of this area will never recover.
The Monterey pine was introduced,
cut down, and made into wood chips.

Exports of wood products increased by about 200%.
But the number of workers remained the same.
Union membership decreased from 50 to 5%.
Workers routinely labor for two years and are sent home.

Today 90% of the grapes in the world come from Chile.
Eight thousand dollars can be made from one hectare* of land.
Young college educated women work in packing sheds
earning between two and four dollars per day.

These workers have increased production
from forty million to one billion dollars per year.
They may work 12 to 16 hours per day,
but may only toil three months per year.

Fishing exports increased from forty-eight million
to nine-hundred thirty-four million dollars.
But there are only so many fish in the sea,
and many were fished to the brink of extinction.

Ships the size of football fields took 43% of the business.
They hired Chilean captains
and claimed they would pay $20 per ton of fish.
They didn’t pay, but they did deplete the fish stock.

Today many can not afford bus fare,  
but Santiago has the most busses in the world.
Half empty busses clog the streets at rush hour.
Gas masks are recommended due to the pollution.

Today children have respiratory problems.
Even the New York Times said,
“The free market fever .  .  .  of Milton Friedman .  .  . was pushed at all costs,
creating an atmosphere in which concern for the environment did not exist.”

But with all this new money
one might think social services were dramatically improved.
But that costs money,
and the Chicago Boys want that money.

Today patients need to bring their own
sheets and medicines to the hospital.
Families pool resources so a relatives
might receive medical care.

Typhoid fever and hepatitis are on the rise.
A new hospital for the wealthy costs $14 million.
A new plane for the Air Force costs $24 million.
New planes are on order.

Today there are less students going to school,
more students dropping out,
and a smaller percentage of students going to college.
But after all, school costs money.

By 1998 the price of copper was cut in half.
40% of the Chile’s export earnings come from copper.
The affluent are scratching their heads,
While the miners tell their children there will be no Christmas presents.*

This overall reality has delighted
Washington and Wall Street.
However, those who are overjoyed with Chile
are not so happy with another nation.

President William Jefferson Clinton said that Cuba
is the only nation in the hemisphere which is not a democracy.
If he feels Chile is a democratic model,
it is easy to understand his reasoning.

Cuba has one of the highest literacy rates in the world.
Medical care and education are guaranteed to all.
Infant mortality is at an all time low.
All of this is in spite of an economic embargo by the US.

No, Cubans don’t have many of the things
affluent Chileans have.
But they have a government that will not rob them blind.
Cuba clearly is the kind of place where the Chicago Boys would not be happy.

By Steve Halpern

The information in this poem was taken largely from the book by Joseph Collins and John Lear, Chile’s Free-Market Miracle: A second Look.  Published by: 

Institute for Food and Development Policy
398 60th Street, Oakland, CA 94618
510-654-4400




* 2.5 acres
* Krauss, Clifford, The New York Times, December 22, 1998

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