You are viewing an obsolete version of the DU website which is no longer supported by the Administrators. Visit The New DU.
Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

Reply #128: Geez... [View All]

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Latest Breaking News Donate to DU
Beel2112 Donating Member (126 posts) Send PM | Profile | Ignore Mon Jun-27-05 07:17 PM
Response to Reply #126
128. Geez...
Edited on Mon Jun-27-05 07:18 PM by Beel2112
Um, no, I don't support Pinochet or his barbaric regime. But what really perplexes me is that even if I did, it wouldn't do anything to advance the idea that Marxism has better than a snowball's chance in hell of ever working {I'm guessing you weren't a star on the ol' high school debate team?}. See, Allende's socialist policies destroyed the economy, thus paving the way for Pinochet:

"Overall, the behavior of the economy in 1971 seemed to vindicate the UP economists: real GDP grew at 7.7 percent, average real wages increased by 17 percent, aggregate consumption grew at a real rate of 13.2 percent, and the rate of unemployment dipped below 4 percent.
...
All did not remain well in the economy in 1971. The UP's macroeconomic policies were rapidly generating a situation of repressed inflation. The high growth rate of GDP was largely the result of an almost 40 percent increase in imports of intermediate goods. The fiscal deficit had jumped from 2 percent of GDP in 1970 to almost 11 percent in 1971. The rate at which the money supply grew exceeded 100 percent in 1971. As a result, the stock of international reserves inherited by the Allende government was reduced by more than one-half in that year alone.
...
By the end of 1971, the mounting inflationary pressures had become evident. The economy was experiencing the consequences of an aggregate demand for goods and services well above the aggregate supply at current prices. This imbalance was aggravated by a series of labor disputes in many large establishments that resulted in the takeover of those firms by their workers. In fact, this procedure became the institutionalized way in which the government seized a large number of firms.

During 1972 the macroeconomic problems continued to mount. Inflation surpassed 200 percent, and the fiscal deficit surpassed 13 percent of GDP.
...
During the first quarter of 1973, Chile's economic problems became extremely serious. Inflation reached an annual rate of more than 120 percent, industrial output declined by almost 6 percent, and foreign-exchange reserves held by the Central Bank were barely above US$40 million.
...
For that year {1973}, the fiscal deficit ended up exceeding 23 percent of GDP."
http://www.country-studies.com/chile/economic-crisis-and-the-military-coup.html

Not exactly a rousing success for Marxism...

You'll be pleased to know that since they moved to a market economy they've done much, much better:
http://countrystudies.us/chile/56.htm
Printer Friendly | Permalink |  | Top
 

Home » Discuss » Latest Breaking News Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC