Chapter 66 The Background to Thatcherism

Seryozha's current investment in Japan can be said to be making money day by day, but the foundation of the Gorky Brotherhood is always on the European continent, so managing Europe well is a major issue related to the future development of the Gorky Brotherhood. Seryozha has plenty of money now, and his wealth will continue to increase. So much money actually brings more risks, and Seryozha is trying his best to reduce these risks. Therefore, scattered investment in the infrastructure and people's livelihood of European countries, so as to control the national economic plans of these countries to a certain extent, has become Seriousha's new goal.

The current European countries have not yet found new economic growth points. Among the Western European countries, except for the Federal Republic of Germany and a few countries in Northern Europe. The current economies of some old capitalist industrial countries are miserable. Under such circumstances, after the Second World War, the series of welfare and nationalization roads established by the long-term left-wing Labor Party in power have come to an end. The right-wing conservative forces represented by Margaret Thatcher gradually regained power in Western European countries. Among their economic policies, the most important path is to re-privatize the large companies that the Labor Party has nationalized over the past few decades, so that the government can get rid of the financial difficulties caused by the losses of these companies.

Speaking of Mrs. Thatcher's economic policies, one has to mention the original source of Mrs. Thatcher's economic policies—the Chicago School of Economics. When talking about the Chicago School of Economics, there is no way around Chile, a long and narrow country in Latin America famous for its dictatorship.

If we talk about the country of Chile, whether it is the Colombian drug cartel or Mrs. Thatcher's economic policies are actually given by the current ruler of this country, Pinochet. In fact, Pinochet was the earliest executor of the economic policies pursued by Mrs. Thatcher. To be fair, it would be more appropriate to call Thatcherism Pinochetism if Pinochet's reputation wasn't too bad.

Now under the leadership of Pinochet, Chile's economic situation can be described as thriving among Latin American countries. The average annual growth rate of the economy exceeds eight percent. The per capita gdp exceeds 5,000 US dollars. Although it is not comparable to the old industrial powers such as the United States, it is already a world of difference compared to when Pinochet first came to power ten years ago.

Speaking of which, Pinochet overthrew the democratically elected president through a bloody military coup to gain power. His predecessor, Allende, was a famous politician and socialist who was a doctor. Allende became the new president of Chile with a slight advantage in the Chilean general election in 1970. With his coming to power, Chile began the reform of Chile's socialist road he advocated. Under his single-handed reforms, Chile's copper mines and large banks controlled by foreign capital were forcibly nationalized, and a universal free medical system was established. In addition, Allende also reformed the education system, Make sure education is fair for every child in Chile. He gave free milk to children, distributed land to landless peasants, and strengthened the power of the trade unions to ensure that workers never lost their jobs. It can be said that these policies of Allende perfectly fulfilled the promises he made during the campaign, but there is only one problem, where does the money come from?

Allende could wrest assets from foreign capitalists, and he could at the same time refuse to pay international creditors. Although Allende's economic performance was quite impressive in his first year in power, by 1971, Chile's economic situation began to plummet. The Allende government in Chile can no longer borrow a dime from international creditors and foreign governments because he has personally destroyed Chile's credibility, and he is forcing foreign investment in Chile while promoting egalitarianism at home The rich and the property owners hurriedly transferred their property and got away from this place of right and wrong. In just one year, Chile's inflation rate reached 120%. Allende's supporters were surprised to find that their wages could never keep up with the skyrocketing prices.

As Chile's domestic capital withdrew, the country's industry and economy stagnated, and nationalization created more unemployment.

At that time, Chilean housewives launched the Empty Pot Movement because they were cooking without rice. They took to the streets with their empty pots and asked Allende to step down. provocation. He froze prices in Chile, but although the prices stopped rising, the common people couldn't buy what they needed. While Allende was still dying, Pinochet led the army to launch a coup and began his dictatorship in 1973, while Allende ended his life with an AK47.

Immediately after Pinochet came to power, the implementation of the constitution was suspended, Congress was dissolved, strict speech censorship was implemented, left-wing political parties were banned, and all political activities were suspended. The junta's crackdown on left-wing political activities resulted in at least 3,000 people being killed or missing, and more than 27,000 people imprisoned or tortured, many of whom were forced into exile. And it was at that time that the first Chilean drug dealers engaged in the cocaine business were forced to leave their homes and come to Colombia to start a new life, in order to avoid the bloody suppression of the devil Pinochet.

If you only look at these measures after Pinochet came to power, then there is no doubt that he is a bloody dictator. But Pinochet did not rely on his own iron-fisted policy to secure his position. He quickly invited students of the famous economist Milton Friedman from the United States to serve as his economic consultants. These "Chicago boys" helped the collapsed Chile to regain its own economic path, and gradually transformed the country that was falling apart and almost fell into the same situation as Colombia into a benchmark for the Latin American economy.

The first thing Pinochet did was to abolish all the welfare systems established during the Allende period, dissolve trade unions, and prohibit workers from striking and demonstrating. At the same time, Pinochet also sold off all the large companies that were nationalized in Colombia, and even the pensions of government officials were handed over to private companies to start taking care of them. Over the years, European politicians like Margaret Thatcher cursed Pinochet as a Nazi and a dictator, while watching Chile's economic rise and salivating. The neo-liberalism advocated by Friedman has also become a good medicine to save the economies of various countries through Chile's reforms. ...

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