The Chile Economy, Social Crisis and Virus Impact

National Crisis, Emergencies, and Natural Disasters in Chile; including the experiences of Chile Forum Members have shared in current and in past crisis, as they have assisted each other and Chile. Things will always go wrong. It is how you deal with it that counts, and that starts with information. When things go wrong, this is the place to come to exchange information about what is going on in Chile.
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admin
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Re: The Economic Impact of the Social Crisis

Post by admin » Tue Jan 14, 2020 3:16 pm

we have plans on movistar. my wife has more calls than data, i think that is why she only got 10 days vs. of my 15 days. but it has worked great anywhere the signal was good.
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41southchile
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Re: The Economic Impact of the Social Crisis

Post by 41southchile » Tue Jan 14, 2020 4:52 pm

admin wrote:
Tue Jan 14, 2020 3:16 pm
we have plans on movistar. my wife has more calls than data, i think that is why she only got 10 days vs. of my 15 days. but it has worked great anywhere the signal was good.
Yes, Movistar does that now, when I went to the States last year got 10 days free roaming as well.
“Facts do not cease to exist because they are ignored.”

scandinavian
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Re: The Economic Impact of the Social Crisis

Post by scandinavian » Tue Jan 14, 2020 7:06 pm

It is a Movistar thing. Works in all Movistar countries + some additional ones. Pretty neat. Furthermore, the pasaporte roaming is a ok deal.
Claro seems to have an even better roaming offer, but haven't tried it.

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tiagoabner
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Re: The Economic Impact of the Social Crisis

Post by tiagoabner » Thu Jan 30, 2020 11:08 pm

This is a very good video summary of the current crisis: https://youtu.be/dPIH4As6sRw

They are also on point on multiple issues:
- The left has a fair share of the blame for Chile's current economic situation, given that they've been at the helm for 25 of the last 30 years.
- Chileans have terribly low productivity when compared to... Well, when compared to anyone else in the world. That leads to a cultural acceptance of low standards, which is why we see so many people working in positions that elsewhere would be covered by half as many employees. Since there's only so much money, wages get lower due to this.
- Chile's financial indicators aren't nearly as bad when you compare people within the same generation. That means that there's opportunity to grow, especially if you have a degree.
- The pension system seems to be the area that can be improved most easily. Hopefully, Piñera's reform will pass to help those with miserable pensions.
- Wage underreporting is a serious issue, and the government should focus on it to avoid having the same issue in the future. Low reported wages lead to less retirement savings, as most people only save the minimal required amount, and this leads to low pensions.
- If I had one item I could add to the Chilean system, it would be an IRA-like system. I seriously doubt that Chilean AFP managers are capable of reliably beating the market, so I would rather manage my savings. There's one reason why mutual funds are popular: they simply work. Also, AFP commissions are criminally high, and there's no way they would be able to charge that much, say, in the US.
I'm NOT your lawyer, accountant or financial planner. All information at this post should be considered for your entertainment only. Consult a professional before making a decision regarding whatever topic was mentioned in this post.

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Re: The Economic Impact of the Social Crisis

Post by admin » Fri Jan 31, 2020 8:09 am

That was actually pretty good, if a bit of an over simplification; but, hard to pack all the issues in a society in to such a short video. there is a lot more going on than pension system issues.

pension system was bound to fail, or more exactly they over promised / expected too much out of it.

first, there was the transition problem from the old system. many people stayed on the old system.

If you looked at that chart of poverty rate decline for chile, it also explains why today's retirees have such small pensions. It took 30 years for wages to rise; meanwhile investment returns were very small. that stat he sites of an average 13 to 18 years of paying in to retirement is accurate, but due in part because the pension system itself is so young. so yea, payments are not going to match today's minimum wage, or even close.

we also have all the gaps in who has to pay. ironically, some of lowest contributors are professionals like doctors, lawyers, etc. independent professionals were expected to pay in voluntarily up until just recently. even now they have a lot of wiggle room for how much they contribute.

then of course there is the crazy high fees, and shit investment mangers, coupled with the government messing with the types of investments that were allowed.
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Re: The Economic Impact of the Social Crisis

Post by scandinavian » Fri Jan 31, 2020 2:53 pm

Decided to check on what actually happened with the promise of lowering the politicians wages with 50%:
https://www.latercera.com/politica/noti ... do/982272/

nothing of course... yet at least. Let's see if it ever makes it through the senate...

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Re: The Economic Impact of the Social Crisis

Post by hlf2888 » Fri Jan 31, 2020 8:15 pm

admin wrote:
Tue Jan 14, 2020 2:36 pm
20200114_143610.jpg
which hotel? would you recommend it?

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41southchile
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Re: The Economic Impact of the Social Crisis

Post by 41southchile » Sun Feb 02, 2020 11:03 am

Last years overseas tourism numbers down 21 percent, yes this is mainly due to Argentineans not coming. No chance of making those numbers up from any other countries or improving the situation for 2020 . Tourism in Chile with the current situation we can expect to see bigger falls this year. Very tough times ahead for tourism operators and now with coronavirus people are going to look seriously at not traveling until things become clearer.
https://www.plenglish.com/index.php?o=r ... nt-in-2019
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Re: The Economic Impact of the Social Crisis

Post by admin » Sun Feb 02, 2020 11:42 am

41southchile wrote:
Sun Feb 02, 2020 11:03 am
Last years overseas tourism numbers down 21 percent, yes this is mainly due to Argentineans not coming. No chance of making those numbers up from any other countries or improving the situation for 2020 . Tourism in Chile with the current situation we can expect to see bigger falls this year. Very tough times ahead for tourism operators and now with coronavirus people are going to look seriously at not traveling until things become clearer.
https://www.plenglish.com/index.php?o=r ... nt-in-2019
This is music weeks in frutillar, and I have never seen so few people.

My best indicator of how bad it is, I have not had one single problem finding parking in frutillar bajo all week. I use to go to the store, and park in the middle of the street, leave my flashers on, and lock the door. Another year, I got caught in a traffic jam, that took me an hour and a half to reach my office (5 min drive or less the rest of the year). none of those problems this year. In fact I often would drive around through fresia exit, get on ruta 5, and drive in to frutillar alto this time of year (20 km out of my way); or simply go to puerta varas / puerto montt, because it was faster to go shopping. same with restaurants. 50% full or less, at peak hours. our friends in the tourism industry are seriously complaining.
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Re: The Economic Impact of the Social Crisis

Post by ghibli » Sun Feb 02, 2020 5:51 pm

the Municipal building in San Antonio was apparently burned to the ground late Friday. So I'm wondering how many and what sort of records were stored there. No doubt all paper files are gone, plus computers. Did they back up to another location? This is chile .... how much will this cost?

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Re: The Economic Impact of the Social Crisis

Post by 41southchile » Sun Feb 02, 2020 8:00 pm

ghibli wrote:
Sun Feb 02, 2020 5:51 pm
the Municipal building in San Antonio was apparently burned to the ground late Friday. So I'm wondering how many and what sort of records were stored there. No doubt all paper files are gone, plus computers. Did they back up to another location? This is chile .... how much will this cost?
An architect told me a couple of months ago, that the older municipal records in Puerto Varas for businesses permissions etc are an absolute shambles, because some really bright spark decided they should all be stored in the top floor of the building. Being Chile with the maestros they produce , the building leaked and was not detected for quite a while, many of the records were water damaged and lost forever. So yeah there is a good chance if there were records there in San Antoino, they are gone forever.
“Facts do not cease to exist because they are ignored.”

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Re: The Economic Impact of the Social Crisis

Post by eeuunikkeiexpat » Sun Feb 02, 2020 8:14 pm

ghibli wrote:
Sun Feb 02, 2020 5:51 pm
the Municipal building in San Antonio was apparently burned to the ground late Friday. So I'm wondering how many and what sort of records were stored there. No doubt all paper files are gone, plus computers. Did they back up to another location? This is chile .... how much will this cost?
Peoples housing subsidy paperwork, the historic plans of the city and such were destroyed and many employees, honararios and regular, now no longer have a workplace. This was not the actual "haunted" current muni building but the one that is a satellite down-the-street extension but originally was the main muni building after the 1985 quake. I doubt the MF'ers have a backup, maybe the Museum of San Antonio has some of the historic plans of the city...
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