Chile is More Economically Free than the United States!

According to this year's Economic Freedom of the World Report, perhaps the most prestigious international ranking of economic freedom, Chile now surpasses the United States in economic freedom and is just behind Switzerland.

To see a nine-minute summary video on Chile, click here.

Chile is a modern, relatively crime-free, fiber-optically linked first-world country where you will feel completely safe and secure.

Chile has the best long-term prospects for stability of any Latin-American country and most countries in the world. Chile has a new Constitution modeled after the U.S., an economic system established by University of Chicago economists, a stable conservative government that set aside a budget surplus for seven years prior to this current economic crisis (the only country in the world to do this), a homogeneous population with Catholic moral character, sacrosanct property rights and constitutional freedoms which make Chile one of the most likely candidates for long-term stability of any country in the world.

 

 

The Government of Chile

Chile's President, Sebastián Piñera, is the best possible president this writer could imagine--the equivalent to the U.S. voting for a successful businessman rather than a professional politician. How likely would that be in the U.S. now that has swung radically to the left, and now openly resents success in business? He is a self-made entrepreneur. The majority of his ministers he selected are Ph.Ds in economics from the University of Chicago. Chile has been practicing conservative economic policies for a long time now. According to Larry Abraham's investment newsletter Insider Report:

"Ricardo Lagos adopted almost every aspect of the free-market proposals advanced by Lavin...he went to bat to defend his economic minister, whose policies are straight out of Milton Friedman's textbooks concerning how to grow an economy. Lagos pushed the central banks to cut interest rates and sent a package of tax cuts to congress which would be the envy of every US citizen. Taxes were cut across the board, from the highest brackets to the lowest, by an average of 20 percent. Capital-gains taxes on foreign investments were eliminated completely as were currency-exchange controls on foreign investment. In fact, Lagos is doing things that Lavin could never have gotten away with. He even made clear that the bureaucracy was going to be cut drastically as he intended to continue with the total privatization of the economy."

Entel Communications fiber optically linked the entire country.

 

 

Chile is Ranked #1

Markets have learned to differentiate between countries. Chile differs from all other Latin America countries in big ways. Most importantly, Chile is free of the corruption that is evident in other Latin American countries. In the most pretigious international ranking at transparency.org, Chile is #1 in all of Latin America with the least corruption, and it placed in their list just behind the U.S.! Also in the Heritage Foundation's Index of Economic Freedom, Chile ranks 1st among all Latin American countries, 1st among all emerging countries, and 8th among all 162 countries ranked, placing above Switzerland and the U.S. in economic freedom! According to the Wall Street Journal Chile is "staying ahead of the pack" of all of Latin America with the lowest inflation, the best gross domestic product figures....while it has foreign-currency reserves of $15 billion. Its foreign bonds are seen as so safe that they yield just 2.2 percentage points more than ultrasecure US Treasury securities."

 

 

Laissez faire (let it alone) capitalism

Nobel Laureate Friedrich Hayek was visionary when he stated in 1981, "The world shall come to regard the recovery of Chile as one of the great economic miracles of our time." With Chile now surpassing the United States in the most prestigous international freedom ranking, nobody can now argue that his prediction has not come true.

The American entrepreneur sees Chile as the frontier of laissez faire capitalism. As one visiting businessman said to us, "This is like America after the World War—the sky is the limit." But this free market began only recently. There is a reason Chile holds a special attraction in the minds of the American. It is the same reason "Chile has grown faster than any other country in the hemisphere and faster than most in the world," according to Westing Co. They believe the reason "is simple—it's more committed to free-market policies than any other country in the hemisphere and more than most countries in the world. In the '80s Chile was the first country in Latin America to wholeheartedly embrace free-market reform. They drastically reduced tariffs, privatized state-owned industries, slashed business regulations and practically eliminated restrictions on foreign investment." The result is that most of Chile's schools are private, social security is private, its medical industry is predominately private, and even the national parks are mostly private. Professor Codevilla of Boston University explains that Chile's "institution of private medical care and a voucher system for primary and secondary education was based on the view that consumer sovereignty produces better services and much better people."

Students from Puerto Montt.

 

 

Privatized social security

Chile was the first country in the world to privatize its social security system. According to Westing Co, this was "a move that has boosted retirement stipends by an average of 50% and now introduces billions of dollars of capital to the local markets every year." (Little wonder, then, that it has now been imitated by other countries and is being championed by President Bush.) This brilliant policy changed the habits of the people "because it turned worker's attention from the arcana of government rules to the fortunes of the funds in which their contributions are invested," according to Codevilla. Since every worker's social security is the corporation, anti-corporate rhetoric (so common in the west) is scarce in Chile. An investor's report from Westing Co. summarizes the reasons for investing in Chile:

"Today, the prestigious World Economic Forum considers Chile one of the five best places to do business. Its commitment to free-market principles and a focus on direct investment, rather than 'hot money,' has made it a bedrock of stability in a volatile world. In 1995, for instance, when Latin American countries were reeling from the 'Tequila Effect,' (the aftershock of the Mexican Peso Crisis), Chile's economy grew a phenomenal 8.4%. In 1997 when the Asian Tigers plunged into recession and the rest of the world was talking about the 'Asian Contagion,' Chile's economy grew 7.1%. In the '80s Chile became the first country in Latin America to receive an investment grade rating and it maintains investment grade ratings from all four of the major ratings agencies." In 2010, at the G20 Summit, then Chilean President, Michelle Bachelet, bragged to the other countries that they should have followed Chile's example. "I would say that because of our decision during the good times, we decided to save some of the money for the bad times," Ms Bachelet told the news conference, "So when we develop our fiscal stimulus plan, we could make one that is 2.8% of GDP." She went on to point out that the UK had introduced a stimulus plan that was far too much of their GDP. According to the BBC, "Gordon Brown is getting lessons from the Latin Americans about sound public finances. You couldn't make it up."

International Speculator's Doug Casey considers Chile one of the world's countries that "offer the most in personal freedom and financial opportunity." The Oxford Club's Steve Sjuggerud, meanwhile, calls Chile, "a model economy."

Quoting from the investor report from Westing Co:

"These policies have made Chile the fastest growing economy in the Western hemisphere over the last 15 years and one of the fastest growing economies in the world. Yet with all its success, Chile began from such a low base that it still has a long way to go. Its per capita income has more than doubled in the last 15 years, but it is still only about $5,000. The economy will have to rise another 500% to reach the level of wealth in the US, Japan and Western Europe. And with its vast natural resources (the area of the country is a third larger than France and three times larger than Britain), its highly educated, entrepreneurial population, and its firm commitment to market policies, there is every reason to believe it will succeed. Despite its phenomenal growth in the last 15 years, the next 15 years in Chile should be just as spectacular—if not more so. Chile has all the makings of Japan in the 1960s (but with far less government) or Hong Kong in the '70s and '80s. Well maintained highways stretch throughout the country. The dominant airlines, Lan Chile and Ladeco, are as reliable as many in the world, though you can generally expect better service than you're likely to receive on a major American carrier. The telecommunications network, according to the US Department of Commerce, rivals that of any developed country, with clear connections on voice, fax, cellular and Internet, and DSL throughout the country. Chile has some of the best hospitals in Latin America, dependable utilities in all cities and throughout much of the countryside. Its primary and secondary educational system is based on the old French standard and offers a much more challenging curriculum than you'll find in the great majority of US public schools. English is mandatory in all high schools and many elementary schools, and you'll find a great number of Chilean professionals will be able to converse with you in the 'King's English.' Good help is not hard to find, either. You can get maid service for about $220 a month. A nanny for your children will run about the same. Weekly gardening service runs about $110 a month. In short, you can live a quality lifestyle in Chile—amidst a friendly and highly educated people, in a beautiful country with one of the most dynamic economies in the world. And you can do it all for less than it would cost you to stay home."

 

 

 

 

Long-term stability

Chile is the perhaps the best possible future alternative domicile during a time of troubles for the debt-laden west. It will also be the domicile of choice "for wealth creation in the Information Age," according to the authors of The Great Reckoning, James Dale Davidson & Lord William Rees-Mogg. As the authors explain, "Where indebtedness is low and the government has already been restructured...[it will be a] superior platform for doing business to unreformed, high-cost economies." They explain another benefit," When you can do business anywhere, you may well choose to do business in a beautiful place where you can breathe deeply without inhaling too much carcinogenic pollution. Thinly populated regions with temperate climates, and a large endowment of arable land per head," like southern Chile, will benefit now that the world is next door with the Internet.

Chile is the Best Bet in the Entire World!

Larry Abraham, a leading financial advisor, surprised his monthly readers of his investment newsletter, Insider Report with the cover story, "Why I Left the United States." The five-page story explained why after "years of investigating many locations: Switzerland, Ireland, France, Australia, New Zealand, Mexico, Costa Rica, even Northern Italy," he decided to move to Chile. Money magazine's cover story entitled "The Brain Drain," describes a small number (250,000) of America's "best and brightest leaving for greener pastures--those we can least afford to lose." The three most chosen countries for these USA exports were Chile, Australia, and New Zealand. Chile being most similar of these three to America's early frontier of laissez faire.

Location, location, location. Searching all of Chile for Savage Jungle.

 

 

Mirror of the Pacific Northwest

Chile, relatively unknown to tourists a few years ago, has quickly joined the ranks of international tourists' most preferred countries following right behind Australia, New Zealand, France and Spain. Why? Because Chile is one of the most beautiful countries in the world.

The Pacific Northwest resident hears about this place in the Southern Hemisphere that is a mirror image of the green Pacific Northwest in geography, climate, and the same fjords and islands of the Inside Passage, but Chile is different in one key way—it is still frontier. Recently The Seattle Times travel section devoted two full pages to a captivating article about Chile. The article captured the readers interest immediately:

"I had not just flown to the Southern Hemisphere, where winter is their summer. I had traveled back in time...the southern part of South America is like a flip-flopped mirror of the scenery and geography of North America's west coast. A ferry ride from Puerto Montt to Puerto Natales, at the southern tip of Chile, mimics the Inside Passage trip from Bellingham to southeast Alaska. Mount Osorno looks like Mount St. Helens before the 1980's eruption. The fjords could be in British Columbia, and the big [seldom fished] lakes copy some in the Cascades. Puerto Montt's inland sea looks remarkably like the Puget Sound. We were in a part of Chile heavily influenced by German immigrants and reminiscent of the Pacific Northwest, with long yards, dairy farms and lovely views. But there are differences plenty...many roads remain gravel. And, the trail and tourist network is still being developed. This spectacular corner of the Earth is just beginning to be discovered by Europeans and Americans. Go now. If history is any guide, in two generations you will be sharing the scenery with an armada of motor-homes."

A few of the many yachts that sail in our fjords — The best sailing in the world.

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