Editing Chicago Boys (section)

==Work Under Pinochet==

Economic Reforms (1974–1982): After the 1973 coup, Pinochet, initially focused on consolidating power, turned to the Chicago Boys to address Chile’s economic crisis (hyperinflation, nationalized industries). Their reforms included:

Privatization: Over 200 state enterprises, including banks, utilities, and pensions, were sold to private investors, often at below-market prices, benefiting Pinochet’s allies and US oligarchs.

Trade Liberalization: Tariffs dropped from 94% in 1973 to 10% by 1979, opening Chile to global markets and boosting exports (copper, fruit).

Fiscal Austerity: Public spending was slashed, and subsidies eliminated, reducing inflation from 1,000% to 10% by 1980 but causing unemployment to peak at 20% in 1975.

Labor Reforms: Union rights were curtailed, and collective bargaining weakened, aligning with Pinochet’s authoritarian control.

Economic Outcomes: By the late 1970s, Chile’s economy stabilized, with GDP growth averaging 7% annually (1976–1981) and inflation under control. However, the 1982 banking crisis, triggered by over-leveraged private banks, led to a 14% GDP contraction, exposing neoliberal vulnerabilities. Recovery by 1985 cemented Chile’s market-driven model, but inequality soared, with the top 10% capturing most gains, as Letelier’s 1976 Nation article critiqued.

Political Context: The Chicago Boys operated under Pinochet’s dictatorship, which suppressed dissent through Operation Condor, torture, and disappearances. Their economic reforms relied on this authoritarian framework, as noted by historian J. Patrice McSherry, enabling rapid implementation without democratic oversight.