By Andrés Velasco

Because the policies they produce are so ludicrous, populist cycles eventually crash against reality and come to an end. Sadly, for too many Chileans, the crash may come when they reach old age with no retirement savings.

How should families pay for the costs of the pandemic? The conservative government’s finance minister proposes that the state should help.Thanks but no thanks, retort members of the country’s congress. Families can use their own accumulated pension savings, and the government should give them access to those funds.

Experts of all political stripes point out that the government is not heavily indebted and could afford to spend more. This country has had enough of experts, reply progressive parliamentarians. People want their money, and they want it now!

When the evil empire is finally forced to open the pension lockbox, the do-gooders’ leader sprints across the congressional hall in a magenta superhero cape. Her followers cheer.

The world turned upside down? A science-fiction tale in a galaxy far, far away? No, just a regular workday in Chile’s parliament. Chile used to be the boring, sensible Latin American country. In neighboring Argentina, Diego Maradona was idolized for scoring a goal with the hand of God. Had he been Chilean, he would have been booed. But no more. With their recent antics, Chilean politicians of right and left have been giving Latin American demagogues a run for their money.

In Chile, pension savings are tax-free, so when high-income households withdraw their money before retirement age, they should pay tax, right? Wrong, say Chilean parliamentarians from across the political spectrum. When a courageous social democratic senator argued that tax was indeed due, thugs posted his home address on social media and encouraged other thugs to pay him a visit.

Read more @Project Sindicate