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→Economic crisis and food shortages
===Economic crisis and food shortages===
===Economic crisis and food shortages===
Salvador Allende froze the prices of all goods and services and raised the wages by 10% within a few months of these economic policies happening the hyperinflation of the Escudo which was the the currency at the time. The Escudo started to lose value rapidly, it started to disintegrate as a currency, the only thing propping it up were the foreign currency reserves of Chile because in 1970 Chile was a fairly prosperous country and all of the successive governments had been very careful to maintain the positive balance of trade and to never ever run any kind of fiscal deficit so Chile had a very large supply of hard foreign currencies: Dollars, Pounds. Financially Chile was in very good shape when this new agenda came in with his policies that started costing all kinds of money.
Salvador Allende froze the prices of all goods and services and raised the wages by 10% within a few months of these economic policies happening the hyperinflation of the Escudo which was the the currency at the time. The Escudo started to lose value rapidly, it started to disintegrate as a currency, the only thing propping it up were the foreign currency reserves of Chile because in 1970 Chile was a fairly prosperous country and all of the successive governments had been very careful to maintain the positive balance of trade and to never ever run any kind of fiscal deficit so Chile had a very large supply of hard foreign currencies: Dollars, Pounds. Financially Chile was in very good shape when this new agenda came in with his policies that started costing all kinds of money.<ref>{{cite web|url=https://youtu.be/GBQiic6vH4Y|author=[[Gonzalo Lira]]|title=Salvador Allende|date=2017|publisher=YouTube}}</ref>
The entrepreneurs couldn't raise the prices with the frozen prices and now they had to pay more to employees starting to lose money and closing they businesses and factories causing mass unemployment and shortages. The response of the government was to seize the companies and accuse them of conspiring and being financial speculators.
The entrepreneurs couldn't raise the prices with the frozen prices and now they had to pay more to employees starting to lose money and closing they businesses and factories causing mass unemployment and shortages. The response of the government was to seize the companies and accuse them of conspiring and being financial speculators.