Ted Cruz Didn't Mince Words When Ripping Into Antony Blinken
Jen Psaki's Book Lands Her in More Hot Water
Biden Admin Admits Release of Gas Reserves Is 'Timed' to Lower Prices Before...
BREAKING: Here's Why RNC HQ Was Placed on Locked Down This Morning
Biden Announces Another Student Loan Bailout
Zelensky's Term Should Have Ended on Monday. Here's Why He's Still in Power.
'Shameful': Three Nations Announce They Are Recognizing a Palestinian State
WaPo Gets a New Headline Suggestion for Story on Florida Meteorologist's Criticism of...
NJ Gym Owner Who Defied State Orders to Close During Pandemic Sees 'Major...
Here's Who Won California's Special Election to Fill McCarthy’s Seat
What Raisi’s Death Means for Iran, the World
Reuters Poll: Biden's Job Approval Falls to Lowest Level Since...
Trump Was Asked About Policies Restricting Birth Control. Here's What He Said.
This Republican Senate Candidate Wants to Codify Roe v. Wade
What an Expert Witness for Trump's Defense Would Have Told Jurors If He...
Tipsheet

Looking for Economic Wisdom in All the Wrong Places

May 1st will forever mark a wonderful day for the United States (enjoy hell, OBL), but it was also a historical anniversary for Chile – marking thirty years since Chile became the first nation to privatize social security. Designed to replace unsustainable public pensions, Chile’s private pension system has successfully weathered the global economic crisis and contributed to the country’s economic growth. According to Investors Business Daily, Chilean retirees have enjoyed a 9% rate of return on their private accounts, while Americans under Social Security have averaged a 1% to2% rate of return.

Advertisement

In the 1970s, Chile began to move away from socialist economic principles and adopted a free market system, resulting in vigorous economic growth. Today, they are a Latin American leader in economic freedom, human development, competitiveness, incomes per capita, and low crime and corruption.

Democrats are often quite fond of comparing the United States to other countries, and invariably finding the United States wanting. According to President Obama, Canada is a bastion of efficient healthcare, Spain is a green-jobs innovator, and China is an exemplar of superior infrastructure. While these particular comparisons are all wildly mistaken, it would be worth studying Chile’s methods as we continue to debate our budget and the virtual Ponzi scheme that is American Social Security.

Join the conversation as a VIP Member

Recommended

Trending on Townhall Videos

Advertisement
Advertisement
Advertisement