Changes

===Economic crisis and food shortages===

===Economic crisis and food shortages===

[[File:Line to get food during Salvador Allende's Socialist Regime in Chile.jpg|300px|thumbnail|Line to get food during Salvador Allende's Socialist Regime in Chile]]

[[File:Line to get food during Salvador Allende's Socialist Regime in Chile.jpg|300px|thumbnail|Line to get food during Salvador Allende's Socialist Regime in Chile]]

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>

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 name=Lira>{{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.

The rumors began in May 1971: shortages, shortages, rationing of food and other essential items. The cards for this purpose were being printed in the Santiago penitentiary. The Undersecretary of Economy, Oscar Garretón, categorically denied: "This is an irresponsible campaign, aimed at creating social tension". But Allende himself speaks already, ominously, of "stocks to be exhausted" in fifteen days or two more months. The Government granting "good money": important salary readjustments -44%-, and applying a brake on the rise in prices, has meant that Chileans have more money than in 1970 and are spending more on all kinds of things. Rumors of crisis and shortages precipitate people to build up their own stocks, and thus produce precisely the crisis and rationing: "Hence the irritation of the Government with the wave of rumors on the matter". In order to undermine this systematic campaign, the Minister of Economy, Mr. Vuskovic, addresses the country on national TV. He explains that the greater purchasing power of the population has been reflected in a higher volume of sales than in any previous period.

The rumors began in May 1971: shortages, shortages, rationing of food and other essential items. The cards for this purpose were being printed in the Santiago penitentiary. The Undersecretary of Economy, Oscar Garretón, categorically denied: "This is an irresponsible campaign, aimed at creating social tension". But Allende himself speaks already, ominously, of "stocks to be exhausted" in fifteen days or two more months. The Government granting "good money": important salary readjustments -44%-, and applying a brake on the rise in prices, has meant that Chileans have more money than in 1970 and are spending more on all kinds of things. Rumors of crisis and shortages precipitate people to build up their own stocks, and thus produce precisely the crisis and rationing: "Hence the irritation of the Government with the wave of rumors on the matter". In order to undermine this systematic campaign, the Minister of Economy, Mr. Vuskovic, addresses the country on national TV. He explains that the greater purchasing power of the population has been reflected in a higher volume of sales than in any previous period.

Despite the proximity of the parliamentary elections, the government decided to face the problem. The Minister of Finance announced, on radio and television, that rationing had arrived in Chile: "The Government is aware that there is a set of difficulties, derived from the shortage of products indispensable for consumption; from rampant speculation; and from the black market, difficulties that have tended to worsen in recent times".

Despite the proximity of the parliamentary elections, the government decided to face the problem. The Minister of Finance announced, on radio and television, that rationing had arrived in Chile: "The Government is aware that there is a set of difficulties, derived from the shortage of products indispensable for consumption; from rampant speculation; and from the black market, difficulties that have tended to worsen in recent times".

The Minister's revelations provoked an avalanche. Former President Eduardo Frei Montalva defined them as "a clear and definitive action for the totalitarian control of the country". Chistian Democrat Senator Juan Hamilton described the speech as "shameless and sinister". "Those who have plunged the country into hunger, want to impose dictatorship through the stomach. Whoever does not submit to the JAP ("Popular supply boards") and the Popular Unity Party Coallition, will not eat".

The Minister's revelations provoked an avalanche. Former President Eduardo Frei Montalva defined them as "a clear and definitive action for the totalitarian control of the country". Christian Democrat Senator Juan Hamilton described the speech as "shameless and sinister". "Those who have plunged the country into hunger, want to impose dictatorship through the stomach. Whoever does not submit to the JAP ("Committees of Popular Supply") and the Popular Unity Party Coalition, will not eat".

The Government's ineffable official comment was transmitted by Bosco Parra: "It is not rationing - he said -. On the contrary, it is a search for a solution to the existing problems. It is the establishment of standards for the identification of needs.

The Government's ineffable official comment was transmitted by Bosco Parra: "It is not rationing - he said -. On the contrary, it is a search for a solution to the existing problems. It is the establishment of standards for the identification of needs.