WEBVTT

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(gentle wind blowing)

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(construction sounds)

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(chanting)

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(medical walker clicking)

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♪

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The plane landed
at Los Cerrillos airport,

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which no longer exists
as far as I know.

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♪

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We got off of the plane
and they\'\'re waiting for us

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at the bottom where
two 5th year students

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of La Catolica
Catholic University.

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One of them was Sergio de Castro

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and the other
was Ernesto Fontaine.

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♪

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♪

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The idea was to help
the Catholic University

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improve the level of economics
that it was teaching.

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The broader idea was to improve
the level of economics in Chile.

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(parade sounds)

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♪

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They came in groups
over the whole period,

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I think we trained
about 25 or 30 people,

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so it isn\'\'t that there
were great masses, uh, coming,

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and, uh, there were
maybe 5 or 6 at a time

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present in Chicago.

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(film reel spinning)

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♪

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♪

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♪

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♪

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♪

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♪

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♪

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♪

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♪

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♪

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♪

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♪

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♪

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♪

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The operation of the
free market is so essential

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not only to promote
productive efficiency,

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but even more to foster
harmony and peace

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among the peoples of the world.

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Every day, all of us are making
decisions that involve gambles.

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Sometimes they\'\'re big gambles as
when we decide what occupation

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to pursue or whom to marry.

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More often there are small
gambles, as when we decide

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whether to cross the street
against the traffic.

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But each time the question
is who shall make the decision,

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we or somebody else,

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we can make the decision only
if we bear the consequences.

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That\'\'s the economic system
that has transformed our society

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in the past century and more.

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When the evening started,
all of these players

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had about the same number
of chips in front of them,

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but as the play progressed
they surely didn\'\'t.

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They\'\'ll be big winners,
they\'\'ll be big losers.

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In the name of equality,

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should the winnings be
redistributed to the losers,

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so that everybody
ends up where he started?

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That would take all
the fun out of the game.

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It\'\'s high hand, nothing,
nothing, nothing...

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What produced this tremendous
improvement in technology?

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It was self interest or,
if you prefer, greed.

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The greed of producers who
wanted to produce something

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that they could
make a dollar on.

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The greed of consumers
who wanted to buy things

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as cheaply as they could.

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Did government play a role
in this? Very little.

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Only by keeping the road
clear for human greed

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and self interest to promote
the welfare of the consumer.

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♪

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The market knows.

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♪

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♪

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The benefits of more open trade.

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The benefits of better
competitive action

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within the local economy.

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The benefits
of making it easier

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for businesses to get
started and to develop

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and to compete with each other,

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all those things were part
of our economics discussions.

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Not typically in classes,

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but in the meetings
that we would have in,

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um, the various parties that
were given by these Chileans

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in their house
or later on in our house.

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♪

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They had parties
every Saturday night

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except at exam time.

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They worked till midnight
during the week,

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but every Saturday night
there was a blast at this party.

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♪

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The police came
nearly every time

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and they sent a different guy
to the door every time

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to deal with the police
so they wouldn\'\'t remember

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that they had been there
so many times before,

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just for the noise
that was being made!

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♪

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These were wonderful fiestas,
and I was invited all the time

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and I came every time I could.

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♪

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♪

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(laughing)

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I came actually
with an American date...

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but Anita was there and, uh,

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from the following week on, um,

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we became, uh,
very good, uh...

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Well, she became
my girlfriend so to speak.

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♪

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We were married
with only 6-7 weeks

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of having known each other.

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♪

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And, um, the marriage lasted

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until she died just in 2011,

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and, um, it was
a wonderful marriage,

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and I can\'\'t think
of anything better.

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♪

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♪

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♪

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♪

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(church bells ringing)

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(chatter)

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♪

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♪

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♪

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♪

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Don Ernesto.

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Don Ernesto,
good to see you, man.

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\"You can\'\'t be good, be great.\"

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\"You can\'\'t be good, be careful.

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If you can\'\'t be careful,
be scientific.

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If you can\'\'t be scientific,
name him after me.\"

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(chuckling)

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Where did my impact,
if any, come from?

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Teaching in Chicago
that is where the story came

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and we became good friends
with all these Latin American

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participants at these parties.

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And that forms
a bond with people.

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♪

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♪

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♪

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♪

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♪

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♪

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Alessandri and his advisors

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thought this platform
was too radical

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and so they didn\'\'t
implement much of it.

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And it was too radical?

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No, I thought--it was
with ladrillo, you see.

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That\'\'s the basic, ladrillo.

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-But was it too radical for you?
-No, I mean--

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I think it would
have been wonderful

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had it been
implemented then.

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♪

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(cheering, chanting)

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♪

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(plane engine whining)

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♪

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♪

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♪

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♪

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♪

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(applause)

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♪

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(chanting)

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(rioting)

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♪

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(murmuring)

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♪

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(chanting)

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♪

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♪

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♪

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♪

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♪

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♪

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♪

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♪

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♪

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Were you aware at that time that
they were doing for the milita--

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I wasn\'\'t even around.

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You were friend of them.

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But, no, what I\'\'m saying
is that, as I told you,

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that after the coup
the first time

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I got to Chile
was \'\'74 in March.

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But you were friend
of Sergio Castro,

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did you talk to him by phone
or something in that time?

00:40:45.375 --> 00:40:47.458
-No.
-Were they worried about him?

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No, not at all.

00:40:49.792 --> 00:40:57.999
♪

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(papers stacking)

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♪

00:42:38.375 --> 00:42:39.750
(military plane roaring)

00:42:39.750 --> 00:42:42.000
(bomb exploding)

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♪

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♪

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♪

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(flames crackling)

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♪

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(metal wheel clicking)

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♪

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(file drawers sliding)

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♪

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♪

00:45:19.875 --> 00:45:21.208
(speaking Spanish)

00:45:21.208 --> 00:45:22.458
The country.

00:45:22.458 --> 00:45:24.500
(speaking Spanish)

00:45:24.500 --> 00:45:28.125
Was going through
a deep crisis.

00:45:28.125 --> 00:45:29.583
(speaking Spanish)

00:45:29.583 --> 00:45:30.417
Moral.

00:45:30.417 --> 00:45:31.375
(speaking Spanish)

00:45:31.375 --> 00:45:31.999
Economic.

00:45:31.999 --> 00:45:32.999
(speaking Spanish)

00:45:32.999 --> 00:45:34.417
Social.

00:46:15.125 --> 00:46:28.999
♪

00:47:16.999 --> 00:47:25.999
♪

00:49:33.458 --> 00:49:35.792
(murmuring)

00:50:05.291 --> 00:50:18.667
♪

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There are different conditions
in different countries.

00:50:38.667 --> 00:50:40.500
(speaking Spanish)

00:50:40.500 --> 00:50:43.583
Conditions in the United States
are one thing.

00:50:47.500 --> 00:50:49.999
He was invited
by Rolf Luüders,

00:50:49.999 --> 00:50:54.875
who was president of the
Mortgage Bank of Chile.

00:50:57.999 --> 00:51:02.834
♪

00:51:02.834 --> 00:51:04.750
Of course I was there.

00:51:04.750 --> 00:51:08.166
And I guess the meeting
was about an hour.

00:51:08.166 --> 00:51:14.333
It was mainly Friedman
and Friedman responding

00:51:14.333 --> 00:51:18.999
and Pinochet asking questions
through an interpreter.

00:51:44.208 --> 00:51:47.834
♪

00:51:47.834 --> 00:51:49.875
What happened was
that the military

00:51:49.875 --> 00:51:52.500
broadly went out
of the ministries.

00:51:52.500 --> 00:51:54.583
De Castro became Ministro

00:51:54.583 --> 00:52:00.999
and this was
the passing the job

00:52:00.999 --> 00:52:06.041
to the technocrats
from the military.

00:52:06.041 --> 00:52:09.542
♪

00:52:09.542 --> 00:52:11.500
Was it because of that?

00:52:11.500 --> 00:52:12.208
I don\'\'t know?

00:52:12.208 --> 00:52:13.083
Did it contribute?

00:52:13.083 --> 00:52:14.999
I think it
probably contributed.

00:52:14.999 --> 00:52:16.999
Would it have
happened otherwise?

00:52:16.999 --> 00:52:20.375
Maybe it would
have happened otherwise.

00:52:20.375 --> 00:52:35.583
♪

00:52:49.375 --> 00:52:54.999
♪

00:53:03.999 --> 00:53:06.999
(jet engine whining)

00:53:45.166 --> 00:53:50.834
♪

00:54:01.999 --> 00:54:07.583
♪

00:56:05.333 --> 00:56:08.542
(speaking foreign language)

00:56:26.792 --> 00:57:02.000
♪

00:57:16.999 --> 00:57:24.999
♪

00:58:58.625 --> 00:59:18.999
♪

00:59:43.542 --> 01:00:38.583
♪

01:01:06.792 --> 01:01:19.999
♪

01:01:19.999 --> 01:01:23.375
I don\'\'t think that
human rights violations

01:01:23.375 --> 01:01:27.208
were necessary
in order to have

01:01:27.208 --> 01:01:29.625
the good things that we have.

01:01:29.625 --> 01:01:30.999
I don\'\'t think

01:01:30.999 --> 01:01:35.542
they were a part
of the process.

01:01:35.542 --> 01:01:39.667
♪

01:01:57.917 --> 01:02:05.458
♪

01:02:18.792 --> 01:02:26.458
♪

01:02:45.999 --> 01:03:13.166
♪

01:04:18.041 --> 01:04:20.999
(applause)

01:05:41.083 --> 01:05:47.166
♪

01:05:51.542 --> 01:05:55.999
♪

01:05:55.999 --> 01:05:58.917
(child crying)

01:06:04.333 --> 01:06:18.041
♪

01:07:02.166 --> 01:07:04.999
(shouting)

01:07:04.999 --> 01:07:40.999
♪

01:07:45.375 --> 01:07:48.208
(clicking)

01:09:09.375 --> 01:09:10.999
I\'\'ve always said there--

01:09:10.999 --> 01:09:12.542
Chile had an economic miracle

01:09:12.542 --> 01:09:16.999
in which the Chicago Boys
played a very important role

01:09:16.999 --> 01:09:19.375
in helping to
bring that about,

01:09:19.375 --> 01:09:22.041
but I think, of
equal importance,

01:09:22.041 --> 01:09:24.250
has been the political miracle

01:09:24.250 --> 01:09:28.999
that starting with that
takeoff, so to speak,

01:09:28.999 --> 01:09:31.959
the continuing
governments of Chile

01:09:31.959 --> 01:09:33.625
have kept the
airplane rising,

01:09:33.625 --> 01:09:37.709
not just staying level
but just rising.

01:09:37.709 --> 01:09:40.917
(speaking foreign language)

01:09:41.625 --> 01:09:45.999
When democracy
returned to Chile,

01:09:45.999 --> 01:09:47.709
ministers after ministers,

01:09:47.709 --> 01:09:50.959
and central bank people
after central bank people

01:09:50.959 --> 01:09:53.041
followed, basically,
the same process,

01:09:53.041 --> 01:09:58.458
did not change the structure
and Chile has prospered.

01:09:58.458 --> 01:10:31.041
♪

01:10:31.041 --> 01:10:33.917
(rustling)

01:10:35.125 --> 01:10:37.999
(honking)

01:10:37.999 --> 01:10:47.417
♪

01:10:47.417 --> 01:10:51.999
Chile was not
a jewel in 1955,

01:10:51.999 --> 01:10:56.458
and it was not
a jewel in 1965,

01:10:56.458 --> 01:10:59.417
and it was not
a jewel in 1975,

01:10:59.417 --> 01:11:01.875
but it\'\'s a jewel today

01:11:02.792 --> 01:11:05.083
in economic terms.

01:11:05.083 --> 01:11:11.083
♪

01:11:21.999 --> 01:11:24.709
♪

01:11:32.250 --> 01:11:38.959
♪

01:11:53.709 --> 01:11:57.041
(sounds of the street)

01:12:03.208 --> 01:12:07.417
(shouting and drumming)

01:12:31.750 --> 01:12:34.834
(drumming continuing)

01:12:55.792 --> 01:12:58.542
(shouting)

01:12:59.959 --> 01:13:02.917
(chanting)

01:13:05.083 --> 01:13:08.125
(indistinct chattering)

01:13:14.999 --> 01:13:17.500
Hey!

01:13:20.999 --> 01:13:23.000
(microphone feedback)

01:13:36.041 --> 01:13:39.458
(applause)

01:13:45.291 --> 01:13:48.291
(indistinct chattering)

01:14:20.999 --> 01:14:24.000
(speaking foreign language)

01:14:32.917 --> 01:14:35.792
(whistling)

01:14:40.542 --> 01:14:42.999
(shouting and drumming)

01:14:46.166 --> 01:14:49.208
(shouting)

01:14:49.208 --> 01:14:52.500
(whistles blowing)

01:14:53.333 --> 01:15:01.999
♪

01:15:01.999 --> 01:15:04.166
(whistling)

01:15:04.166 --> 01:15:08.166
♪

01:15:08.166 --> 01:15:10.834
(chanting)

01:15:10.834 --> 01:15:14.417
♪

01:15:41.625 --> 01:15:48.375
♪

01:15:48.375 --> 01:15:51.834
(shouting in foreign language)

01:15:51.834 --> 01:15:55.583
♪

01:15:55.583 --> 01:15:58.417
(chanting)

01:16:16.750 --> 01:16:34.667
♪

01:17:02.999 --> 01:17:36.875
♪

01:17:36.875 --> 01:17:39.333
(whistle blowing)

01:17:39.333 --> 01:17:41.166
♪

01:17:41.166 --> 01:17:43.999
(siren wailing)

01:17:43.999 --> 01:17:46.792
♪

01:17:46.792 --> 01:17:49.375
(shouting)

01:17:49.375 --> 01:18:05.000
♪

01:18:07.792 --> 01:18:10.458
(rustling)

01:20:02.375 --> 01:20:05.125
(applause)

01:20:05.125 --> 01:20:38.333
♪

01:20:51.917 --> 01:20:57.500
♪

01:21:06.999 --> 01:21:15.875
♪

01:21:25.000 --> 01:22:03.875
♪

01:22:03.875 --> 01:22:06.417
(shouting)

01:22:06.417 --> 01:25:11.208
♪