How many times have you read an article online about a once prosperous country that now finds itself in dire straits?
From the vantage point of those of us who live in the US, the most prosperous nation in human history, such stories seem unfathomable.
But they’re generally the norm outside of the US.
Most countries around the world go through turbulent cycles of economic growth.
Our very own Western Hemisphere offers plenty of examples to examine.
Just look at Chile.
Back in the 1970s, Chile’s economy was in shambles.
Its government implemented destructive nationalization policies and price controls.
To add insult to injury, the Chilean central bank printed money up the wazoo which inevitably brought about inflation.
Chile’s leader Salvador Allende presided over a completely collapsed economy that eventually led to his overthrow via a military coup in 1973.
Though his ouster did not guarantee stability.
Until about the 1980, the country was still recovering from the economic upheaval of the 1970s.
Thankfully, the country had the good fortune of having several economists who knew a thing or two about private enterprise.
These economists, famously known as the “Chicago Boys”, were instrumental in giving sound advice that the military regime implemented.
Generally speaking, these measures consisted of lifting price control, making it easier for business to be created, and privatizing inefficient state industries.
In time, Chile’s economy took off.
Since 1975, Chile’s per capita income has quadrupled, making it Latin America’s most economically developed country.
Similarly, poverty in Chile went way down.
In the 1980s, poverty was around 45% and dramatically fell to 8.6% in 2019.
Pretty wild stuff.
But all of Chile’s economic accomplishments could now be in jeopardy.
Starting in 2019, the country has begun to unravel.
Originally, there were small scale protests concerning quality of life issues ranging from increased metro fares to the precipitous rise in housing prices.
Agitators took advantage of the protests and went on to burn churches, loot stores, and destroy private property.
Order was eventually restored, but the country was never the same in the aftermath of the protests.
The country was rocked and many members of the Chilean ruling class began to question the merits of Chile’s market-based model.
Voters subsequently went to the polls in 2020 where they voted to approve rewriting the country’s constitution.
Chile’s constitution is largely viewed as Latin America’s most stable constitution and one of the primary driver’s for Chile’s success story.
With the Chilean constitution likely to undergo significant changes, the usual specter of Latin-American style instability looms on the horizon.
This is a region that is notorious for changing constitutions on a dime — a recipe for institutional chaos and economic volatility.
Time will tell if Chile will spiral out of control like other countries in Latin America (Argentina & Venezuela for example) who were previously prosperous but later became perennially unstable.
You might be wondering what relevance does a foreign country’s economic experience have for wealth building? Well, here are several lessons to keep in mind:
- Today’s prosperity is not always guaranteed to last
- Political jurisdictions — Whether they’re national, state, or local — can vary significantly in terms of policy that impacts wealth building.
This means you have to prepare for anything that comes your way.
You never know how the economic or political winds will blow.
Politics cannot be 100% avoided but you can prevent many hairy situations by doing your homework on housing policy.
You see, housing is a sector that can have significant regulation depending on the state you live in.
You can learn which states are friendly towards landlords and income property investors by joining the Empowered Investor community.
Here we will give you the necessary information to avoid the many regulatory and legal headaches that countless investors have had to put up with in their ventures.
I cannot stress how you must prepare and do your homework accordingly when you enter the real estate game.
Not doing so, could land you in hairy situations.
At the Empowered Investor, we teach members to pay attention to housing policies present in your state.
The education you’ll receive is only the tip of the iceberg.
The power of the Empowered Investor lies in the community that you’ll be a part of.
And you can meet members of this thriving community at Empowered Investor Live.
From September 10 to September 12, the Empowered Investor community will be in sunny Orlando for a life-changing event that will help you maximize your return on life.
Empowered Investor Live is where the masters of the real estate game will be dropping major knowledge and relevant industry news to help you hack real estate.
Here’s what you can expect by attending Empowered Investor Live:
- Expert panels with fruitful discussions.
- A two-day-tour of the real estate industry.
- Networking with fellow income property investors.
- Tips on how to build wealth during inflation.
- Game-changing revelations about the new markets we’re investing in.
…And much more!!!
But you’ve got to hurry. Early bird prices will be ending in 11 days!
Don’t miss out on this opportunity to draft your very own declaration of financial independence.
Register at the link below to attend the one conference that will open new doors to financial prosperity:
To your wealth,