I wrote back in July about the remarkable transformation of Chile into a prosperous market economy.
In that post, I noted that Chile was a pioneer in the shift from unsustainable tax-and-transfer entitlement schemes to savings-based personal retirement accounts. And with good reason. That system, which has been in place for more than three decades, is hugely successful.
We should do the same thing in America, and we should do it yesterday, if not sooner.
But Chile’s success is driven by more than just pension reform. And I want to mention something remarkable about what’s happening with school choice in that country.
First, some background. I’m currently at a Cato Institute donor retreat, where I had the chance to talk to Jose Pinera, who is now the Co-chairman of Cato’s Project on Social Security Choice, but who also was the person who implemented the pension reforms in his home country of Chile.
I knew Chile had a school choice program, and I wrote a brief post about those reforms back in 2010.
But I was stunned when Jose told me yesterday that about 60 percent of Chilean kids – of all ages – now attend private schools.
That’s far better than Sweden, which also has nationwide school choice, but has only about 20 percent of high school-age kids in private schools.
Jose thinks that it is just a matter of time before more than 80 percent of Chilean kids are in private schools. Why? Because people like freedom and choice.
He often brags – and rightly so – that more than 95 percent of workers chose personal retirement accounts when given the option of staying with the old government-run pension system. So it shouldn’t be a surprise that parents also choose wisely when deciding how to get the best possible education option for their kids.
Now, if we can just figure out how to expand school choice in America…