Neither her tax increase nor her labor law, did anything but shoot the economy in the foot. The education reform is dead in the water. The tax she claimed she was bringing in to the government, was in fact lost somewhere else when she killed the economy. The labor law looks like they poison pilled it from the start with crap she knew would not pass through the courts. At least that dog got a bit of lobotomy before it was set loose on the economy, but now no one is sure exactly how to apply it.
So, the country finds itself with a half-ass union law that neither helps workers, nor helps employers. That was likely one of the greatest missed opportunities to fix and modernize the labor laws in decades, both for workers and companies. instead they tried to pass some attempt at some Marxist inspired crap law that was designed to destroy and punish not just companies, but entire industries. It was not designed to get workers better wages and pay, but put companies out of business permanently. The workers can wave their signs all they want, in front of a company that is not coming back.
It is not an accident that the biggest fastest growing companies in Chile, are guess what? The ones leaving the country. They are expanding in to other countries. They are doing most of their long-term investment in other countries. The Chilean companies that did not see the writing on the wall, that stuck to the domestic market, are mostly just limping along. The ones that are growing are buying up companies and expanding in to other countries. Latam merger, everyone knows about. BCI just bought a bank in the United States. Copec just bought a chain of gas stations in the U.S. Fallebella is opening Sodimac in Mexico, while the unions in Chile have shut down sodimac stores in the south for over a month. Everyone is investing in Peru, Colombia, Mexico, and so on.
hell, we might even give Bachelet a bit of credit for encouraging the biggest expansion of foreign investment by Chilean companies in history, in to other countries.
Now she wants to go screw around with the AFP? What they are proposing with the AFP is nothing less than tax increase for companies, and very little in the way of fixing the problem. Let's give more money to the morons that can not beat a monkey with a dart board with their investment picks. Seriously. I think I have made more money this year than all the AFPs (all three risk profiles) just on a crappy bank CD. The chilean stock market is at a three year high. Just an index fund of the IPSA has returned 15%+ this year. The better companies are up 40-60% this year. What the hell are those people investing in that they can not turn more than 2 or 3% a year, with one of the better performing stock markets in the World in 2016?
That is the problem with all of it. What they are proposing is not going to make poor people richer. It will definitely make their buddies richer. It will make the poor people more dependent on them. There is not one thing they have done that is not geared towards locking in a future voting block of poor.
But, now is really the time to watch. As the election approaches, 2017 will be the year that bachelet's clown car starts stuffing the silverware in their pockets on the way out the door. They have already started with the mayor's offices. The PDI just raided the Puerto Varas mayor's office, because 500 million pesos in money, office equipment, and so on was stolen as the mayor left town. Our socialist mayor that got the boot in our local town in the last election, signed a pile of contracts on behalf of the city on the last day, then resigned before his term was up to try and run for congress. The new mayor has requested investigation, and is spending his first months in office trying to cancel a bunch of shady contracts.
2017 is going to be a lot more of the same, as no one is in charge of the government right now. It is the total Lord of the Flies, lame duck administration.
I am all for socialism in theory. Chile is a developing country. Public and private money needs to be spent on developing it. I am however not for corruption pretending to be socialism.
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