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Chile is currently under huge social protests. Maybe the largest since the 80s. The main problem according to them, "deep income inequality." The interesting thing is that the Chilean economy has been booming for decades and even the low classes are much richer. The number of people in Chile below the poverty line dropped from 40 percent to 20 percent between 1985 and 1997, 15.1 percent in 2009, and it is even lower now. According to World Bank data, the number of Chilean under the poverty line has decreased by more than 90% in the last 30 years. Education-wise, older generations have a low percentage of high school completion rates but younger generations have higher completion rates than rich countries (OECD)! Not to mention that Chile was poorer than Brazil in the 80s and a couple of years ago its GDP per capita passed Portugal and it has a higher life expectancy than the US. Chile's inequality rate has remained constant for decades (Gini coefficient graph). Therefore, what is the problem?
In my opinion, at least two factors help to explain the true problem. First, the causal correlation between money and happiness is very blurry (as I have already mentioned here). Despite large economy progress in ALL social classes, major violent protests with multiple deaths remain, which is a common event throughout the world. Multiple studies argue that relative wealth can be more important for happiness than absolute wealth, where absolute wealth is your nominal monetary income and relative wealth is your monetary income measured in relation to other members of society (e.g. Veenhoven, 1991; Fliessbach et al, 2007). Second, democracy is the best political system but politicians usually have to successfully sell high hopes to get elected. Hopes that are almost always unfeasible. For example, the idea that any elected leader will solve inequality is pathetic. There is virtually no evidence of a country in the last 5000 years which solved the inequality by lifting the poor, historians say. All major income equalization came as a way of mass warfare, complete revolutions, state collapse, and catastrophic plagues. When everybody loses everything the rich are the ones who lose more (Scheidel, 2017). How many countries do you know that 50 years ago were highly unequal and today are highly equal? Other factors that increase individuals' hopes may also play a role in the protestors such as the "common sense" that if you work hard you will achieve your dream or at least have a very good chance (more on that here).
Although many of us are sold in the idea that everything has a solution, everything can get better (partly due to the nature of elections), this is not what the data says. Chileans are fighting for money, are fighting for dreams, and they think that "standard Latin American policies" (i.e. larger governments) will bring them there. If they manage to twist the economic policies that brought them so much wealth (which I think they will), they will find no money, no dreams, and no Shangri-la.