Political Ironies That'll Make You Cry
Hard to translate. It's the name of Chilean economist Marcel Claude's new YouTube series, Ironías Políticas Para Llorar, and here's the first installment:
If you can understand Spanish it's a pretty entertaining watch. He gives a good presentation, beginning with "Welcome distinguished listeners, inter-watchers, interNET-watchers..." seeming to mock the uncertain formality of the first television broadcasts (I'm assuming they were uncertain and formal, maybe not).
It's hardly surprising that, having been watched over 2,000 times, Claude's video beats out all Chilean politicians' videos on YouTube. Still, more people need to see this. Despite the fun presentation, the points he makes are really sad. Here are a few I jotted down:
1. By carrying the government's analysis to its logical conclusion, then in order to enter into the richest 20% of Chileans, you can do so by working as a maid.
Now, let me add that this isn't Southern California, this is Chile where they really do make a miserable pittance. At one point when a maid came to the apartment I was staying at in Santiago, we paid her $14 a day and she worked for about 5-6 hours. A friend told me that was relatively good pay for what maids normally earn.
2. I've mentioned this before, but Claude re-iterates how someone in Chile can escape poverty by making more than US$90/month. And so there's less poverty in Chile than in the European Union. As he puts it, the government loves to torture these statistics until they confess.
3. "Inequality is decreasing in Chile". According to the government, it's been reduced to the point where the richest 10% of the country make only 31 times what the poorest 10% make. Claude points out, however, that at the time of the study various owners of the major supermarkets (like Jumbo, Lider, Falabella) simply didn't respond, and the study was never corrected to reflect that! Factoring in their estimated incomes, the richest 10% in Chile is 88x richer than the poorest 10%. This, Claude notes, is the worst level of Chilean economic inequality in 50 years, Gracias a Presidente Ricardo Lagos.
This photo is from the outskirts of the city of Quemchi, in Chiloé, where I was looking for some of the authentic local shingle work, definitely took a wrong turn.
If you can understand Spanish it's a pretty entertaining watch. He gives a good presentation, beginning with "Welcome distinguished listeners, inter-watchers, interNET-watchers..." seeming to mock the uncertain formality of the first television broadcasts (I'm assuming they were uncertain and formal, maybe not).
It's hardly surprising that, having been watched over 2,000 times, Claude's video beats out all Chilean politicians' videos on YouTube. Still, more people need to see this. Despite the fun presentation, the points he makes are really sad. Here are a few I jotted down:
1. By carrying the government's analysis to its logical conclusion, then in order to enter into the richest 20% of Chileans, you can do so by working as a maid.
Now, let me add that this isn't Southern California, this is Chile where they really do make a miserable pittance. At one point when a maid came to the apartment I was staying at in Santiago, we paid her $14 a day and she worked for about 5-6 hours. A friend told me that was relatively good pay for what maids normally earn.
2. I've mentioned this before, but Claude re-iterates how someone in Chile can escape poverty by making more than US$90/month. And so there's less poverty in Chile than in the European Union. As he puts it, the government loves to torture these statistics until they confess.
3. "Inequality is decreasing in Chile". According to the government, it's been reduced to the point where the richest 10% of the country make only 31 times what the poorest 10% make. Claude points out, however, that at the time of the study various owners of the major supermarkets (like Jumbo, Lider, Falabella) simply didn't respond, and the study was never corrected to reflect that! Factoring in their estimated incomes, the richest 10% in Chile is 88x richer than the poorest 10%. This, Claude notes, is the worst level of Chilean economic inequality in 50 years, Gracias a Presidente Ricardo Lagos.
This photo is from the outskirts of the city of Quemchi, in Chiloé, where I was looking for some of the authentic local shingle work, definitely took a wrong turn.
posted by Chileno @ 11:39 PM
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14 Comments:
that picture looks way better than shitholes places like...New Orleans, USA just to name one...
Well, I've said it before and I'll say it again, Lagos is a jackass. I just don't understand why Chileans love him.
Anyways, that's besides the point.
This was a great watch. I'm definitely going to be sending in on to all my Chilean friends, I think a lot of them will be surprised by some of the things he says. Thanks for posting the video, and I hope when he comes out with another episode you'll remind us all to go watch.
rod, you're right, "it could be worse". Is that what you want to say? Because "it could be worse" is precisely the name of the logical fallacy one learns in HIGH SCHOOL, which is used to argue that because it's worse somewhere else, any material plight being experienced in the place of focus is not worth your attention. What unadulterated crap! And you should know better...
Anyway, FYI, Quemchi suffers under one of the most negligent regional governors imaginable. He leaves the main city like you see in the picture, where the islands nearby are to this day without running water and electricity, hundreds if not thousands of settler communities. This is in Chile, 2007, where there's "less poverty than the European Union".
As long as the government promulgates artless lies about how great Chile is doing, it's vital to point out how it could be BETTER, but that it's NOT as good as it supposedly is.
Lastly, the photo is not exemplary, it's all I had on my hard drive. I'm surer better photos could be taken demonstrating even more abject poverty, I just haven't taken those photos, and I never claim that this photo is the worst of it. I'm just a loser with a blog and I slap up what I can, when I can.
Certainly, you don't have to travel to Chiloe. There's plenty of material in Santiago, where 40% of Chileans live.
MC, I don't understand it either, although his popularity decreased during his presidency, perhaps it's coming back up I don't really know, just pound his fist on the table...then there's Transantiago. Pinera's totally ridiculous, but he's got a great record of functional transportation.
I just hate how Lagos fucked over the environment in so many ways because it was either that, or no economic expansion at a time when Chile really needed to put the pedal to the metal. That's his argument. Yet now, in the midst of this socialist revolution, inequality is worse than ever. Might as well have kept the environment in tact for what it's destruction has benefited the majority of Chileans in this miraculous economy.
Your forays into the world of economics and wealth-distribution are always interesting, often refreshing and usually correct. But the easiest thing in the world to do is to be selective in one's statitics. The wealthy do that all the time to shore up their justification for their greed.
But it's a complicated issue - and not easily reduced to simple % comparisons. "The richest 10% vs the poorest 10%" comparison is usually a poor measure in any country - one should slice off the extremes at both ends or use a wider wedge.
For instance the "Greed-pig"/"Poverty-prole" measure in the US (richest 10% vs poorest 10% in terms of annual earnings) is 65/1. A better measure would be the richest/poorest 20% - which is 18/1 in the US. I'm looking for Chile's 20/20 comparison - which I assume would be something like 25/1, but I'm not sure (yet).
Certainly, the 'poverty-salary' of 90 bucks a month is a tragic figure (and a rediculous one for the Concertacion to use). But I'd be interested in seeing the GDP/capita numbers (with the top 10% of the greed-barons' taken out, so as not to inflate the truth) over the past 17 years. I'm pretty sure they have grown - but I'll check.
Certainly, from my recent month (May) spent in Chile, compared to the late 80's and the mid-90's, under Aylwin/Frei, I observed considerable improvement - not just in the Las Condes 'playland', but in Conchali and Coelemu as well. But not NEAR enough improvement at the poverty & workers' end as I expected - given the boom in the wealthy end of Santiago.
I think the reason lies less in Lagos' contribution (?) or 'good-intentions' than in the combination of South America's historical 'bario-alto' fascism, coupled with the Friedman-free-market dogma of recent decades. Yeah, I'm still a "Galbraithian", where social responsibility has to trump the purity of econometrics if the 'gente' are to be served. Santiago and Washington both need to take note. I think you'd enjoy "Sicko"
An interesting look at the 'extremes' : -
The 10 richest people on earth have a combined net worth of $255bn roughly 60% of the income of sub-Saharan Africa. The world's 500 richest people have more money than the annual earnings of the poorest 3 billion.
>>>Chile's 20/20 comparison - which I assume would be something like 25/1, but I'm not sure (yet).
It'd be good to get to the bottom of that, also (and I don't claim to set any sort of citation standard myself all the time), but if you could tell me where you get all the figures you cite above, it'd be a great help. Thanks :-)
Anyway, I'd also like to find out why/how in 2005 the World bank ranked Chile in the worst 12th of the world's most economically unequal countries, worse than Bolivia in that regard, and a bunch of African countries.
Shopping cart truths, handpicked statistics, handpicked experts, PhD's like Marcel Claude, organizations like the World Bank, heads of State like Michelle Bachelet - important to look critically at all of them, you're right.
Your overall point that inequality is a global problem is well taken, but the focus of this discussion is Chile. I'll be the first (and least relevant) person to applaud growth, or improvement, or whatever, but such frenzied effort of the gov't to cover up discrepancies is cause for suspicion. If, as your saying, a 20/20 comparison is more accurate, then why doesn't the government publish that study? Why do they effectively falsify the 10/10 study, and boast a decreased inequality in the first place, knowing damn well that it's simply a false number, based on a 10/10 comparison.
And what if they had done 20/20 comparison? According to Claude's analysis, you can work as a NANA and enter into the richest 20% of the country.
>>>But I'd be interested in seeing the GDP/capita numbers (with the top 10% of the greed-barons' taken out, so as not to inflate the truth) over the past 17 years. I'm pretty sure they have grown - but I'll check.
The question is: if growth is happening, is it proportional to what Chileans could be receiving compared to the overall wealth?
The catholic church and government agree that it's not "ethical" for many to make minimum wage, in companies that can certainly afford to pay more (of course, the gov't doesn't DARE make a law, the very conservative Pinera would propose a gov't SUBSIDY before suggesting a legislative wage increase, just showing how businesses are absolutely sacred cows).
Point is, inequality is bad in Chile, it needs to be improved in Chile, and the gov't spends a whole lot of time and energy evangelizing false statistics and posturing, without holding anybody accountable. The CODELCO breakthrough is a small, but wonderful exception in a largely horrifying status quo.
Hi, first time in your blog, I'm a Chilean living in the UK. Just wanted to post a comment on that youtube series you linked... it's pretty good and refreshing. I have already subscribed. It's nice to get a different perspective on things, the same ol'crap in La Tercera and Emol gets tiring after a while...
On Lagos...I think people liked him because compared to our previous presidents and dictators he has a remarkable ability as a communicator, a key attribute in politics. From corporal language to the use of media and events around him...he projected a likable image and a sense of security. When he did something good he made damn sure everyone knew about it, when he messed up...no one remembers. He projects this likable guy image that is hard to get through. I mean, you have guys like Chavez and Fidel who people say are good communicators and charismatic leaders but then, its not so hard to hate them or despise them because they don't worry about being diplomatic. Lagos is, imho, one of the best 'smooth talkers' in S.American politics, he's very careful about raising his voice or his famous index finger...so when he does it, people notice.
Eso nomas, chao.
4:20 a.m. !!! You're up late! ;-)
I'll send you an e-mail with some things in it -
Will -
I found some interesting comparative tools from a University of Pittsburgh PowerPoint presentation, primarily concerned with public health issues and comparing Canada with the US and a European ‘trio’ of Denmark, Sweden and the UK.
In slide #17, there’s a New York Times-sourced table of income ranges by tax bracket from “Citizens for Tax Justice – 2002” that makes it easy to calculate the “top 20% vs bottom 20% and, by inference, estimate the 10%/10% ends as well.
e.g.: US top 20% - approx. 175,000/yr
vs US bottom 20% of $9300 = 18/1
US top 10% - approx 325,000/yr vs US bottom 10% (est) $5000 = 65/1
http://www.publichealth.pitt.edu/
http://www.publichealth.pitt.edu/supercourse/SupercoursePPT/8011-9001/8531.ppt
(more in e-mail)
As to the World Bank's ranking of Chile, it probably is because they included the 'way out of proportion' top 10% in their figures too. In an expanding economy like Chile's in the past few years, coupled with the historical 'elite' pigging out on the new wealth, it's not surprizing that Chile 'LOOKS' worse than Bolivia and some African countries - but that is very misleading - in the sense that the lower and average ends in Chile are FAR ahead of Bolivia and Chad. The top 5% skew the figures to make Chile look worse than it really is. Which is NOT an argument in favour of the under-taxed wealthy. It's just an example of how misleading some 'figures' tend to be.
I certainly appreciate your understandable concentration on Chile - after all, it is the "Chileno" blog. And the wealth distribution has to be tackled - and will be (I think) over time. Pinera and Co. (including the fabled "Chicago Boys" of the mid-70's) are still convinced (?) that the "Laffer Curve" will miraculously result in "trickle-down" to the huddling masses - and they and most governments will continue to manipulate numbers to prove their theories.
It don't damn trickle, for fuck's sake!!
Interesting mention of "Corporate Social Responsibility"
http://www.ketchumcomms.co.uk/node/190
Now, if only we hade "Elite Social Responsibility" and "Government Social Responsibility" maybe the free-market would benefit all (as Friedman and Thatcher preached it would).
What is the Codelco 'breakthrough' you refer too? Maybe it will cheer me up. :-)
Thanx Max. Btw, did you like Lagos?
Tom, the World Bank uses the Gini Index, which you can read about here:
Gini Coefficient - World Bank
It's based on a complex metric ranking inequality between 0-1, the former being perfect equality, the latter being perfect inequality. Chile ranks in the .50's, or at least in 2005 did.
That's what Claude pointed out in a separate article I once read. I think what he's getting at in this video is that the government was simply lying about the 10/10 metric. Regardless of whether it's a good metric or not, they lied about it and he's calling them out on it.
And at the risk of deferring to something just because I would need a PhD to understand it, the Gini Coefficient seems a lot more rigorous than simply a 10/10, 20/20 or, hell, why not a richest 50 vs. poorest 50 measure?
The wikipedia article on the Gini coefficient has a colorful world map comparing countries, Chile quite colorful ;-)
I look forward to your email...
Note From Chileno: I edited some of the obscenity out of rod's comment below (and if he doesn't like it he can fucking sit and spin), because the overall gist is worth responding to.
Rod said:
No, no, no. I think Chiloé has been "neglected" since many, many years ago. But in a way, that's the way they have live for many years and its kind of funny how many people jump on the poverty wagon, what do you expect...they are fishermen for fuck sakes! They are tough, I bet you anything that same people that live on those conditions are somehow "happier" than fellas that live on places more developed. You should try, move down there, I don't know, few months.. a year, then write a book and who knows...you might get some kind of prize...
Rod, sit and spin. Of course, I won't need to get you too dizzy before you fork over your money to high-stakes gaming about the condition of the chilotes, you already say:
>>> They are tough, I bet you anything that same people that live on those conditions are somehow "happier" than fellas that live on places more developed.
Rod, this is folkloric, sentimental drivel and you know it. It serves more damage to the underprivileged, than help to them.
That their "toughness" is somehow an attribute that helps them endure poverty is dehumanizing and, frankly, hateful. That they're "fishermen for fuck's sake" only serves to negate the value of their profession. And that you make a logical leap from their enduring poverty as they perform an essentially worthless trade to their inherent "happiness" displays a pathological hatred for the poor, although I appreciate your blunt expression of what I suspect many in Chile's government essentially feel about this topic.
So I would be willing to bet good money that these people aren't happy, because I've been there and talked to them. The night I was in Quemchi there was a "Salmon Festival" where a local school group composed a song berating the local governor (although ridiculously, the crowd heckled them into silence because it is "disrespectful" to criticize authority. I talked to a woman in favor of heckling the singers. It wasn't a reflection of satisfaction with the governor, it's just super old-school Chilean formality).
On the Chauques Islands of Chiloe, which are under the jurisdiction of the same governor, a resident complained to me how the governor had never been out to the islands (that have no running water or electricity) although they ARE in his jurisdiction. He's commonly considered to be aa BAD governor.
Lastly, I wrote about a woman in Quecavi who had worked on a fishing boat, where they paid less than $20 for a 14-hour workday out on the high sea, storms or no storms. She was NOT happy.
Read about it here.
To summarize: your cheap, unfounded stereotypes do nothing to help whatever vague argument you're trying to advance.
Great post! I can't get enough of this stuff!
Aslo, just to be "that guy," I would translate "Ironías Políticas Para Llorar" as "Political Ironies to Cry About."
(Sorry to comment on the most irrelevant part of this blog)
Chile claiming is has "less poverty than the European Union" is as equally absurd as Evo Morales stating that "in 10...15...20 years, Bolivia will be better off than Switzerland". Chile is a mastermind at skewing numbers, from the "good" air pollution level (which, as you have pointed out before, is well above "bad" levels in other countries) to the percentage of people living in poverty.
Max, for some reason I don't think he will use his "famous index finger" at his Brown students.
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