It's worth reposting here, because it might explain the fascinating of the GOP with Pinochet.
http://www.democraticunderground.com/discuss/duboard.ph... "The model for Iraq is Pinochet's Chile"
- Grover NorquistBirth Pangs
excerpted from the book
The Shock Doctrine
The Rise of Disaster Capitalism
by Naomi Kleinp96
For the first year and a half, Pinochet faithfully followed the Chicago rules: he privatized some, though not all, state-owned companies (including several banks); he allowed cutting-edge new forms of speculative finance; he flung open the borders to foreign imports, tearing down the barriers that had long protected Chilean manufacturers; and he cut government spending by 10 percent-except the military, which received a significant increase. He also eliminated price controls -a radical move in a country that had been regulating the cost of necessities such as bread and cooking oil for decades.
The Chicago Boys had confidently assured Pinochet that if he suddenly withdrew government involvement from these areas all at once, the "natural" laws of economics would rediscover their equilibrium, and inflation-which they viewed as a kind of economic fever indicating the presence of unhealthy organisms in the market would magically go down. They were mistaken. In 1974, inflation reached 375 percent-the highest rate in the world and almost twice the top level under Allende. The cost of basics such as bread went through the roof. At the same time, Chileans were being thrown out of work because Pinochet's experiment with "free trade" was flooding the country with cheap imports. Local businesses were closing, unable to compete, unemployment hit record levels and hunger became rampant. The Chicago School's first laboratory was a debacle.
Sergio de Castro and the other Chicago Boys argued (in true Chicago fashion) that the problem didn't lie with their theory but with the fact that it wasn't being applied with sufficient strictness. The economy had failed to correct itself and return to harmonious balance because there were still "distortions" left over from nearly half a century of government interference. For the experiment to work, Pinochet had to strip these distortions away-more cuts, more privatization, more speed.
... Pinochet and de Castro got to work stripping away the welfare state to arrive at their pure capitalist utopia. In 1975, they cut public spending by 27 percent in one blow-and they kept cutting until, by 1980, it was half of what it had been under Allende. Health and education took the heaviest hits. Even The Economist, a free-market cheerleader, called it "an orgy of self-mutilation .1128 De Castro privatized almost five hundred state-owned companies and banks, practically giving many of them away, since the point was to get them as quickly as possible into their rightful place in the economic order. He took no pity on local companies and removed even more trade barriers; the result was the loss of 177,000 industrial jobs between 1973 and 1983.° By the mid-eighties, manufacturing as a percentage of the economy dropped to levels last seen during the Second World War.
p104
Pinochet held power for seventeen years, and during that time he changed political direction several times. The country's period of steady growth that is held up as proof of its miraculous success did not begin until the mid-eighties-a full decade after the Chicago Boys implemented shock therapy and well after Pinochet was forced to make a radical course correction. That's because in 1982, despite its strict adherence to Chicago doctrine,
Chile's economy crashed: its debt exploded, it faced hyperinflation once again and unemployment hit 30 percent-ten times higher than it was under Allende. The main cause was that the piranhas, the Enron-style financial houses that the Chicago Boys had freed from all regulation, had bought up the country's assets on borrowed money and run up an enormous debt of $14 billion.(...)
http://thirdworldtraveler.com/Naomi_Klein/Birth_Pangs_S... So if you want to know what the result of George W. Bush's rule will be and want a continuation by McCain will imply, you can just check the results of Pinochet's Chile. Except that the debt is over $10 trillion... because Bush wants to be #1.