Chile’s Popular Unrest Is a Lesson for the World
Chile’s Popular Unrest Is a Lesson for the World
If it can happen in Chile, it can happen anywhere. That’s what Bloomberg Opinion columnist John Authers wrote this week as demonstrations broke out across the South American nation, long considered one of Latin America’s most-stable democracies. He joins the “What Goes Up” podcast to discuss the consequences for markets and societies with similar economic systems.
A proposed increase in subway prices triggered a cascade of popular anger over broader financial inequality throughout Chile, resulting in massive, peaceful protests, but also instances of vandalism, riots and civilian deaths involving the police and military.
“If you’re an investor, it’s increasingly the sociological things that are beginning to worry you; is civil order going to break down in some countries?” says Authers. “There is a sense that Chile’s carefully thought-through, free-market version of a welfare state that appeared to be working actually isn’t. And that’s very concerning for the rest of the planet, because we’ve spent a couple of generations assuming that that was the way to go. ‘’
Authers also discusses his current views on the U.S. stock market, and how the “pain trade” may be for the equity rally to continue despite a cloudy fundamental picture. Also joining the podcast is Bloomberg reporter Molly Smith, who gives her take on the current state of credit markets.
To contact the editor responsible for this story: Topher Forhecz at tforhecz@bloomberg.net, David Rovella
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