Title: The Economic Debacle In Latin America
Headings: The Economic Debacle In Latin America
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The Economic Debacle In Latin America
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Content: It also convinced others that if you lose an election you can reverse the results through street revolts. In addition to economic damage, the revolts in Chile will weaken the efforts of those who want to mimic their successful economic policies and move towards more free markets in Latin America. Crises can have a long-term impact on ideas. The Great Depression and, to a lesser degree, the recession of 2008 – both of which were caused by economic factors – are prime examples. The first led to a huge change in the economic narrative about the benefits of the free economy, convincing many that an economy left to itself was prone to major cyclical crises. The crisis of 2008 and its aftermath reinforced the idea that having central banks pump liquidity into the economy is the only way out. What happened in Chile will fuel the notion that only third-way economic policies, such as the social democracy that exists in much of Europe, are viable in Latin America. My lament is the socialists’ joy. The opposite might happen if the new Brazil continues to liberalize its economy and its government is successful in retaining power. I have visited the country several times and have studied and written about its economic reforms, and it is the only large country that I approach with some optimism.