Capitalist Chile vs Socialist Venezuela

Venezuela is a basket case and mostly because of their rampant socialism.

You don’t have to look far for suitable comparisons between successful capitalist countries vs collapsing socialism.

The story of Chile’s success starts in the mid-1970s, when Chile’s military government abandoned socialism and started to implement economic reforms. In 2013, Chile was the world’s 10th freest economy. Venezuela, in the meantime, declined from being the world’s 10th freest economy in 1975 to being the world’s least free economy in 2013 (Human Progress does not have data for the notoriously unfree North Korea).


1. As economic freedom increased, so did income per capita (adjusted for inflation and purchasing power parity), which rose from being 31 percent of that in Venezuela to being 138 percent of that in Venezuela. Between 1975 and 2015, the Chilean economy grew by 287 percent. Venezuela’s shrunk by 12 percent.


2. As its economy expanded, so did Chile’s ability to provide good health care for its people. In 1975, Chile’s infant mortality rate was 33 percent higher than Venezuela’s. In 2015, almost twice as many infants died in Venezuela as those who died in Chile.


3. With declining infant mortality and improving standard of living came a steady increase in life expectancy. In 1975, Venezuelans lived longer than Chileans. In 2014, a typical Chilean lived over 7 years longer than the average citizen of the Bolivarian Republic.


4. Moreover, more Chileans of both sexes survive to old age than they do in Venezuela. As they enter their retirement, the people of Chile enjoy a private social security system that was put into place by Cato’s distinguished senior fellow Jose Pinera. The system generates an average return of 10 percent per year (rather than the paltry 2 percent generated by the state-run social security system in the United States).


5. Last, but not least, as the people of Chile grew richer, they started demanding more say in the running of their country. Starting in the late 1980s, the military gradually and peacefully handed power over to democratically-elected representatives. In Venezuela, the opposite has happened. As failure of socialism became more apparent, the government had to resort to ever more repressive measures in order to keep itself in power—just as Friedrich Hayek predicted.


So, hands up who wants to live under socialism?

Socialism makes everyone equally miserable.


– Human Progress


THANK YOU for being a subscriber. Because of you Whaleoil is going from strength to strength. It is a little known fact that Whaleoil subscribers are better in bed, good looking and highly intelligent. Sometimes all at once! Please Click Here Now to subscribe to an ad-free Whaleoil.

  • sandalwood789

    I’m stunned that 25-30% of voters in this country would vote for Labour. The most common reasons seem to be “because my parents voted for them” or “because I hate John Key”.

    Anyone who votes Labour thinking that “they’d run the country better” is fooling only themselves.

    • JEL51

      I had lunch with one such voter on Friday and the only question she asked about the budget was …” did we get any extra in our pensions?” …!!
      Of all the concern over the last few months, be it mouldy housing, lack of housing and/or hospital funding, of which her life has been handsomely rewarded by, she could only just ask ….”what was in it for ME…”.
      I thought that really said it all.

      • Sailor Sam

        And what is wrong with that.
        Are you yourself willing to forgo payrises to fund clean houses for people who are to lazy to clean their house, whether rented or not?

        • JEL51

          Oh no, pensioners are the most deserved to receive of any, if there is any suggestion of increases but it was the typical response of placing … ‘Me,Myself & I’…. before all others that some take, that is so telling. ( May I add this same person will shortly embark on her 2nd European cruise in 5 yrs….and I’m not jealous!! )

  • Disinfectant

    Says it all.

    All my life I have had to deal with Socialist councils.

    Even in New Zealand they are the biggest impediment to economic development.

    The Christchurch City Council has resolved to put together a new entity by. merging three existing ones for economic development. It will be receiving $15.5m of ratepayer fundung.

    There is absolutely no need for it. All it will do is interfere and give second raters some ratepayers money

  • Union Jack

    Chris Trotter has his hand up but a bit more hesitantly now than a few years ago.

  • Keyser Soze

    Makes me want to visit Chile.

  • Nesher

    Socialism – not even once.

  • sandalwood789

    I look forward to the day that saying that you’re a “lefty” will be seen as like saying that you have the plague.

    Being a lefty *really is* like being a member of the Flat Earth Society. Believing in something (socialism) that has been utterly discredited. Supporting the left is flaunting one’s ignorance for all to see.

    ( Edit – added last paragraph )

  • Socialism makes everyone equally miserable

    Not so. Socialism most certainly makes some more miserable than others. Goodness knows what the Gini co-efficient looks like in Venuzuela, but I’m betting it is probably horrendous.

  • It is very easy to be a socialist when the economy is doing well (usually after a right wing government has been in power.) but very hard when the economy is doing badly. And this is the problem. Socialists know how to waste money very well, but are absolutely clueless when it comes to how the productive sector works.

    What do they say, if you are not a socialist in your youth you have no heart, and if you are still a socialist when older you have no brain.

  • Low Expectations

    Chile has some amazing roads, tunnels (through the Andes) and motorways as well.