User:Ridley0526/Chicago Boys

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The Chicago Boys were a group of Chilean economists prominent around the 1970s and 1980s, the majority of whom were educated at the Department of Economics of the University of Chicago under Milton Friedman and Arnold Harberger, or at its affiliate in the economics department at the Pontifical Catholic University of Chile. After they finished their studies, and returned to Latin America they adopted positions in numerous South American governments including, prominently, the military dictatorship of Chile (1973–1990), as economic advisors. Many of them reached the highest positions within those governments. While the Heritage Foundation credits them with transforming Chile into Latin America's best performing economy and one of the world's most business-friendly jurisdictions, critics point to drastic increases in unemployment that can be attributed to counter-inflation policies implemented on their advice. there policies have been hugely influential, and critical to the foundation of the neoliberal economic policy and ideology. Future neoliberal world leaders like Ronald Reagan and Margret Thatcher were influenced by Chile's policies and economic reforms.

History

Even though the Chile Project ended, the training connection between Chile and the University of Chicago continued. One of the numerous networking organizations for alumni, including the Chicago Boys, is the "Latin American Business Group at Chicago Booth School of Business" (LATAM). The term continues to be used in popular culture, business magazines, press and media. In 2015, a Chilean film titled Chicago Boys was released.

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Under history

After the coup when the Chicago boys were given power and el ladrillo was implemented the Chilean economy began to grow and expand at a rate much higher than that of other similar countries. This was seen as an economic miracle and gave these policies greater credibility worldwide. However, this has led to great income inequality in Chile which is still an issue that raises concern.

These policies were seen as the natural reaction to Marxism and part of Chile's role as a hot spot during the Cold War. The anti-Marxist junta supporter radical free market policies promoted by the Chicago Boys as a part of their destruction of Marxism.

After the end of the military rule and return to democracy this specific group lost power and many joined the private sector, although there policies and effects still remained in place in many areas.

Shock Doctrine and Economic Policies
As the key economic advisors of the Pinochet dictatorship the Chicago Boys were they forerunners of the economic policies of that government. They sponsored state run policies to decrease national spending, end inflation and promote economic growth. They promoted a policy of strict austerity and cut government expenditures substantially. Free trade agreements and the breakdown of barriers to trade were also promoted to help Chile compete in the world market. They also privatized public companies, and utilized the free market rather than government rule to promote their economic policies. This was part of the neoliberal economic views espoused by Milton Freidman, the ideological backer for their views. Freidman and his connections to the Chicago Boys was highly politicized especially after he received the Nobel Prize for Economics in 1976. The policies are also sometimes referred to as shock therapy based on the fact that they were projected to hurt the economy but overall be beneficial in the long run. These policies influenced future governments and organizations tied to the neoliberal economic viewpoint such as the World Bank, International Monetary Fund, and other International Organizations and governments. However, the relations between these organizations was not always close, and rivalry between neoliberal organizations still existed. The ideology of free market capitalism and laissez faire economics in conjunction with a strong military rule and total political control is the cornerstone of Pinochetism, in conjunction with a strong anti-communist political platform. These policies and their effects are both highly controversial in Chile and around the World, and represent a major divide in Chilean politics to this day.

International Influence
The economic success of the Chicago boys was a critical part of bolstering the Pinochet regime abroad. The Chilean miracle as it was called attracted a lot of necessary positive attention for the Pinochet government, and allowed Pinochet to exercise political repression without condemnation by economic allies. New policies such as structural adjustment, free trade, and tax cuts became incredibly popular with conservative political groups throughout the western world. These policies eventually spread into the United States and United Kingdom via their conservative leaders. Chile was one of the first countries to embrace these policies and they have since spread in part due to the initial success Chile experienced.