The Tragedy of an unfinished Free Market Country

Photo by ev on Unsplash

I lived six wonderful years in Chile, from 2011 to 2016, both in Santiago and in Renaca, a beautiful little town nestled on the pacific ocean overlooking Vina del Mar, for which the violent crisis of these days does not surprise me at all, I think it is the consequence of the Chilean paradox, a real metaphor on the roots of the inevitable decline of the so-called Developed West as well as of what awaits us in the near future.

History is a human phenomenon and as such implacable in its course, only the critical sense, which the great Austrian economist Ludwig Von Mises called praxeology, allows us to clearly observe the evidence of truth.

The paradox is evident, the richest and most developed country in the whole of South America, reborn from the tragic socialist drift of the socialist pro-Cuban Allende government, thanks to the free market policies of the Chigago Economic School of the Nobel Prize winner Friedman, the so-called “Chile Shock Therapy“, since the middle of the seventies, it finds itself now in the midst of a new violent socialist and populist reaction.

The reason for its extraordinary economic development is the cause of its deep crisis and its violent reaction!

But the profound tragedy is represented by the easy and mistaken conclusion that it is the free market, capitalism, the real cause of this profound economic and social distortion and that, consequently, it is the central State, socialism, the solution for a return to a new world of social justice and equality!

Do you not hear the almost obsessive repetition of these words?

But how is it possible that the reason for the extraordinary success of this beautiful country is also the cause of its profound crisis?

The reason, as in any paradox, is simple:

Chile stopped halfway and did not have the courage to continue the path of the free market to the end, until the last mile !

despite having indicated to the world the path of true economic freedom and the consequent explosion of entrepreneurial spirit, of the freedom of the pension system, of health, education, infrastructure, the mining industry and so on, it stopped after the first steps!

Opening the market only to the first arrivals, with the tragic mistake of not having had the courage to free even the last mile, that of small and medium-sized enterprises, that of an increasingly growing and conscious middle class!

Over the years these first arrivals have done nothing but grow, almost exponentially, to the point of creating great oligopolies and then closing in on themselves, innovating and prospering thanks to the conquered economic freedom, the only engine of development, but at the same time falling into the tragic trap of an easy alliance with the State to protect itself from the difficult and inevitable competition of small entrepreneurs.

The soul has been sold to the State, to their worst enemy, today they begin to pay the consequences

This unfortunate alliance could only create a long and inexorable path of inequality and envy between two distinct social classes, that are increasingly at odds with each other, the quicos,the oligarchs with the upper middle class and all the rest, the flaites, together with the middle and lower bourgeoisie,

a long and inexorable social pressure ready to break out in an increasingly closed and self-referential system

The paradox of Chile is easily predictable, it will be considered the tangible and irrefutable proof of the miseries caused by the free market, in a word, by capitalism and the need to return to the centralized market, to socialism, to equality, to the paternal State that decides and it protects!

The parody is that all this happens in the country that only a few decades ago lived directly on its skin the miseries, violence and desperation of the real social-pro-Cuban socialism, while still today it continues to welcome in its land, alas less and less free, a growing and continuous number of Venezuelan refugees fleeing Maduro’s own Cuban pro-socialism …

Founder of The Ark Lab

Founder of The Ark Lab