Chapter 522

Xie liaosha's investment in Japan is really a huge sum of money, but the foundation of the Gorky brothers is always on the European continent, so running Europe well is a major event related to the future development of the Gorky brothers. Xie liaosha now has a lot of money, and his wealth will continue to increase. In fact, so much money brings more risks, and Xie liaosha is trying his best to reduce these risks. Therefore, decentralized investment in infrastructure and people's livelihood of European countries, so as to control the national economy of these countries to a certain extent, has become a new goal of cheriosha.

At present, European countries have not found new economic growth points, except for the Federal Republic of Germany and a few northern European countries. The economy of some old capitalist industrial countries is miserable now. In this case, after the Second World War, a series of welfare and nationalization established by the left-wing labor party for a long time has come to an end. The right-wing conservative forces represented by Margaret Thatcher began to regain power in Western European countries. Among their economic policies, the most important way is to re privatize the large companies nationalized by the Labor Party in recent decades, so that the government can get rid of the financial difficulties caused by the losses of these enterprises.

Speaking of Thatcher's economic policy, we have to mention the original source of Thatcher's economic policy - Chicago School of economics. When it comes to the Chicago School of economics, Chile, a long and narrow country in Latin America famous for its autocratic rulers, is even more difficult.

When it comes to Chile, the economic policies of both the drug cartels in Colombia and Margaret Thatcher are all thanks to Pinochet, the current ruler of the country. In fact, Pinochet was the earliest executor of Thatcher's economic policy. To be fair, it would be more appropriate for Thatcherism to be called pinochetism if it was not for Pinochet's bad reputation.

Now, under Pinochet's leadership, Chile's economic situation is unique among Latin American countries. The average annual growth rate of the economy is more than 8%. GDP per capita is more than five thousand dollars. Although it can't be compared with the old industrial powers such as the United States, it's a big difference compared with the time when Pinochet came to power a decade ago.

In fact, Pinochet took power by overthrowing the elected president in a bloody military coup. His predecessor, Allende, was a famous politician and socialist who was born as a doctor. Allende became Chile's new president by a narrow margin in Chile's general election in 1970. With his coming to power, Chile began the reform of Chile's socialist road that he advocated. Under his first-hand reform, Chile's copper mines and large banks controlled by foreign capital were forced to be nationalized, and a universal free medical system was established. In addition, Allende reformed the education system to ensure that education was fair to every child in Chile. He gave free milk to children, gave land to landless farmers, and strengthened the power of the guild to ensure that workers did not lose their jobs. It can be said that Allende's policies perfectly fulfilled the promises he made during the election campaign, but there was only one problem, where did the money come from?

Allende can take their assets from foreign capitalists, and he can also refuse to repay the debts of international creditors. Although Allende made remarkable economic achievements in his first year in power, Chile's economic situation began to plummet in 1971. Chile's Allende government can no longer borrow a dime from international creditors and foreign governments, because he has personally destroyed Chile's reputation. While he is pursuing equalitarianism at home, he is also forcing foreign investors and property owners in Chile to quickly transfer their property and leave this land 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 catch up with the soaring prices. With the withdrawal of Chile's domestic capital, the country's industry and economy have stagnated, and nationalization has led to more unemployment.

At that time, housewives in Chile launched the empty pot movement because they had no rice to cook. They took their empty pots to the streets and demanded Allende to step down. Allende thought it was a provocation from the capitalist and imperialist. He has frozen Chile's domestic prices, but although prices are no longer rising, people can't buy what they need. While Allende was still dying, Pinochet led the army to launch a coup and began his own dictatorship in 1973, while Allende ended his life with an AK-47.

After Pinochet came to power, he immediately suspended the implementation of the constitution, dissolved the parliament, carried out strict censorship of speech, banned left-wing parties and suspended all political activities. The junta's crackdown on left-wing political activities resulted in the killing or disappearance of at least 3000 people, the imprisonment or torture of more than 27000 people, many of whom were forced into exile. At that time, Chile's first cocaine dealers were forced to leave their homes and start a new life in Colombia to avoid the bloody suppression of Pinochet.

If we only look at these measures after Pinochet came to power, then there is no doubt that he is a bloody dictator. But Pinochet didn't rely on his own iron hand policy to be stable. He soon invited students from Milton Friedman, a famous economist in the United States, to serve as his economic adviser. These "Chicago Boys" helped the collapsed Chile regain its own economic path, and gradually transformed this fragmented country, which was almost in the same situation as Colombia, into a benchmark of Latin American economy.

The first thing Pinochet did was to abolish all the welfare systems established during Allende's time, dissolve the trade union, and prohibit workers' strikes and demonstrations. At the same time, Pinochet sold off all the big state-owned enterprises in Colombia. Even the pensions of government officials were handed over to private companies. Over the years, European politicians like Margaret Thatcher have been cursing Pinochet as a politician and dictator, and salivating over Chile's economic rise. The new liberalism advocated by Friedman has also become a good medicine to save the economies of all countries through the reform of Chile.