International Liberty

I shared yesterday a remarkable TV show about Estonia’s entrepreneurial miracle.

Today, let’s look at the Chilean version in the series. It shows how the South American nation, which now is ranked very high for economic freedom, is a shining example of how small government and free markets are a recipe for good results.

I don’t follow Chile as closely as Estonia, so instead of five good and bad policy developments (or lack thereof) in the nation, we’ll focus on three favorable items and one unfortunate feature.

Here are the three most positive policy lessons from Chile

First, Chile is the world champion for personal retirement accounts. It shifted from a failed pay-as-you-go tax-and-transfer to a funded system of personal accounts. Workers were given the opportunity to stay in the old system, but more than 95 percent realized it was better to have private savings rather than…

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