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December 5, 2005

Jumbo

 Santiago Patricia picked us up at about 11:00 and we started our tour of Santiago. It was really a great thing to do as we saw so many places that would have been hard for us to even know about given our limited time in the city.

Knowing my interest in economics she made a real effort to show us segments of the strong Chilean economy. Not only has Chile signed a free-trade agreement with the United States just last year, but it also just signed a free-trade agreement with China. That is something that I think would be impossible for the U.S. to accomplish in today’s political environment where both political parties like to treat China as a scapegoat for any perceived problems in the economy. What is even more amazing to me is that these agreements were signed by Lagos, a socialist. It was truly a sign that the arguments in favor of free-trade had won in Chile.

Talking to people you also get the sense that much more than the U.S., people associate free-trade with the rights of the consumer to freely buy the best product in terms of quality and price available. In the U.S. free-trade is associated with job losses. In Chile, to a larger degree, it is associated with more options for consumers. For example, we were told how prior to all this trade, clothes and shoes were incredibly expensive. Now, with less expensive clothing coming from Asia, people can afford more clothing in addition to other products or they can spend the money they save on something else that they might not have been able to afford. It is an attitude I wish was more prevalent in the United Sates.

We took a look at Jumbo, a giant supermarket that sold everything from food to clothing to office supplies and much more. It reminded me of an upscale Wal-Mart but when I asked if there was any backlash against stores like this Patricia replied that there really was not due to the fact that people can get so many good products at one place for great prices. It made sense to me. And really, the place was bustling—full of people shopping.

We also drove up into the base of the Andes which are very close to the city. It was interesting to see how quickly one can go from downtown shopping malls, to pine trees, to ski slopes. Santiago really is a unique city.

After the tour we thanked Patricia and promised to keep in touch. Next time we visit, whenever that is, they want to take us to the wine country a few hours south of the city. Of course, we would love nothing more than to show them the same hospitality in our hometowns in Northern California.

Posted by Peter Mork at December 5, 2005 3:41 PM

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