Why Chile Is More Economically Free Than the United States

42-16335429In the 2009 Economic Freedom of the World Report, Chile is now #5, one place ahead of the United States.

In 1975, of 72 countries, Chile was No 71. How did this happen? The explanation lies in what I call the “Chilean Revolution,” because it was as important and transformative to my country as the celebrated American Revolution that gave birth to the United States.

The exceptional political circumstances of this period have obscured the fact that from 1975 to 1989 a true revolution took place in Chile, involving a radical, comprehensive, and sustained move toward economic and political freedom (from a starting point where there was neither one nor the other). This revolution not only doubled Chile’s historic rate of economic growth (to an average of 7% a year, 84-98),  drastically reduced poverty (from 45% to 15%), and introduced several radical libertarian reforms that set the country on a path toward rapid development; but it also brought democracy, restored limited government, and established the rule of law.

In 1998, The Los Angeles Times described the importance of the Chilean Revolution to the world:

In a sense, it all began in Chile. In the early 1970s, Chile was one of the first economies in the developing world to test such concepts as deregulation of industries, privatization of state companies, freeing of prices from government control, and opening of the home market to imports. In 1981, Chile privatized its social-security system. Many of those ideas ultimately spread throughout Latin America and to the rest of the world. They are behind the reformation of Eastern Europe and the states of the former Soviet Union today… which demonstrates, once again, the awesome power of ideas.

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José Pinera • September 17, 2009 @ 4:52 pm
Filed under: International Economics and Development

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Limiting the TSA’s Use of “Strip Search Machines”

I wrote here in February about the push and pull over “strip search machines,” also known as “whole-body imaging” and “millimeter wave scanning.”

The question is joined: How do you maintain privacy with a technology that’s fundamentally intrusive? Maybe by using it less. This week, Rep. Jason Chaffetz (R-UT) introduced a bill to limit the use of whole-body imaging.

H.R. 2027, the Aircraft Passenger Whole-Body Imaging Limitations Act of 2009, would place several limits:

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Jim Harper • April 24, 2009 @ 12:26 pm
Filed under: Foreign Policy and National Security; Telecom, Internet & Information Policy

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