Chicago-school doctrine directly guided Chilean deregulation while reinforcing rather than weakening authoritarian rule.
Evidence
Intellectual doctrines formulated in Chicago were not marginalized during this second phase of neoliberal mobilization of knowledge. With reference to Harberger’s ground rent theory, land use and housing in Santiago were relieved of all regulation and subjected to the market mechanism, for example (Oppenheim 1999, 152ff.; Sabatini 2000). As a consequence, the Chilean welfare state was weakened, but the authoritarian state was not. The new social security market was controlled by the conglomerates with the closest connections to Pinochet. — Philip Mirowski & Dieter Plehwe (eds.), The Road from Mont Pèlerin, 1588
Categorization
- XREF: Connects to wider historiography of Chicago Boys in Chile, and to the argument that neoliberalism and authoritarianism were mutually reinforcing rather than opposed. — connects to: Military coercion, not free markets, secured the submission Chilean shock therapy required — Jessica Whyte, The Morals of the Market: Human Rights…, 342; Over 150 Chilean economists were trained in Chicago across three decades. — Philip Mirowski & Dieter Plehwe (eds.), The Road from Mont Pèlerin: The Making…, 1551; Chilean neoliberalism drew on multiple schools, not Chicago economics alone. — Philip Mirowski & Dieter Plehwe (eds.), The Road from Mont Pèlerin: The Making…, 1612 (+3 more)
- SEED: An essay angle: how deregulated welfare markets concentrate control in politically connected conglomerates rather than diffusing it.
Broader Connections
- Chicago-trained economists filled key Chilean ministries under Pinochet
#expands(0.90) — Philip Mirowski & Dieter Plehwe (eds.), The Road from Mont Pèlerin, 1624 - Chicago-trained economists spread neoliberal ideas among Chilean capitalists through business associations
#expands(0.85) — Philip Mirowski & Dieter Plehwe (eds.), The Road from Mont Pèlerin, 1557 - Chicago-trained economists were placed throughout the Chilean state before the 1973 coup.
#corroborates(0.80) — Philip Mirowski & Dieter Plehwe (eds.), The Road from Mont Pèlerin, 1552 - Chilean neoliberalism drew on multiple schools, not Chicago economics alone.
#qualifies(0.78) — Philip Mirowski & Dieter Plehwe (eds.), The Road from Mont Pèlerin, 1612