some allchileans are still wondering...
The Shining Star That Once Was Chile
http://www.nasdaq.com/article/the-shini ... e-cm411483
What happened to the once shining star of capitalism in South America, Chile? Recently its economy has been teetering and its GDP plunged from 4.2% in 2013 to an estimate by the IMF of 2.0% in 2014.
The world’s largest copper producer has suffered from socialist influenza, courtesy of the new President Michelle Bachelet. Since Ms. Bachelet took over the reins of the government in the early part of this year, she has embarked on a series of reforms that threaten to undermine the prosperity of this most developed of South American countries.
The foremost is a “tax reform” undertaken by the government which was recently passed and will raise the corporate taxes from 20% to 27% by 2017 and close certain loopholes. Ms. Bachelet intends to use the additional revenue, slated to be in the billions of dollars, for social programmes such as free university education.
However, raising taxes on both wealthy individuals and corporations in an economic slowdown could undermine the economic expansion of the last 30 years, and Chile may be in danger of going the way of other socialist nations on that continent.
Quoting from a recent article in the Financial Times, “Now, however, Chile perfectly captures the catchphrase from last week’s World Bank/International Monetary Fund meetings: the “new mediocre.” Seven months into the new administration of socialist president Michelle Bachelet, growth has stalled in Chile and inflation is pressing upward.” I think a change of course is needed.