Wednesday, April 3, 2013

Blog 8: Chile's Booming Economy



Chile’s economy is quickly growing and becoming more prosperous than ever, writes Luis Andres Henao in his article ‘Chile’s Pinera Says No Risk of Economy Overheating.’ Being the president of Chile, I trust that Sebastian Pinera knows what he is talking about. Not only is Chile the number one copper producer for the world, but they are also growing strong when it comes to the mining industry. I have learned in this sociology class that it is best for a country if they can be producers of more than one resource. The finance minister has mentioned that Chile might take measures to avoid having the economy expand so rapidly. If they expand too quickly they run into the issue that productive capacity can’t keep pace with demand. This is an issue with many other countries. Pinera is quoted as saying, "The bulk of investment in Chile is financed through Chilean savings and only a small part with foreign savings, besides that, the current account deficit is being financed not through debt but through direct foreign investment…" A healthy economy is the thing to aim for, even if it takes time. Pinera is quoted again, “"constant concern of not overheating the economy, I'm convinced that the Chilean economy is growing healthy, strong and in a sustainable way, and that it can continue to grow at this rhythm." Despite such wonderful economic growth, the country has one of the sharpest gaps between rich and poor. A country is often defined by its numbers of poor people, and Chile has quite a few. Hopefully as the economy continues to grow successfully this gap will narrow. It is in the best interest of every type of Chilean that the gap narrows. 

8:07pm
4/3/13

No comments:

Post a Comment