This week I wanted to do something different. I remember that, in my Economic Policy course at the end of my undergraduate studies, our professor, Joseph Ramos, asked us a simple question: What is Chile's GDP? We, students who had taken the most complex econometrics courses, studied the entire macroeconomics curriculum brought over by Oscar Landerretche from MIT, completed more than 20 teaching assistantships, and been among the youngest research assistants in the entire department, had no idea. "Come on, it can be in pesos or dollars," Joe insisted. No one, no one raised their hand. Economics students from the most prestigious school of economics in the country did not know what Chile's annual GDP was.

Obviously, I can only speak for myself and my classmates who were in the room at the time. The question, of course, was intentionally designed to provoke a certain reaction in the classroom: embarrassment. It was an unconventional but effective way to introduce orders of magnitude, the first topic we would cover in the course. I will never forget that day because, as a teacher, I now make sure that my students understand at least the most basic figures of the national economy so that, when they enter into a debate, they have a clear understanding of what they are talking about. Especially if they are seeking the highest office. That is why, in the following lines, I will list the figures that I believe readers must know in order to understand a little of what we are talking about.

Macro

1. Chile's GDP (annual, 2020): US$253.693 billion

2. GDP per capita (2020): US$13,038

3. GDP per capita (at purchasing power parity, 2020): US$23,363

4. External debt (total, 2020): US$208,980.

5. Government debt (total, 2020): US$82,352.

6. Exchange rate (pesos per dollar, September 2021 average): $783.63

7. Unidad de Fomento (average October 2021): $30,214.61

8. Monetary Policy Rate (October 2021): 2.75%

9. Central Bank inflation target (annual CPI variation, two years): 3.0%

10. Inflation (annual CPI change, September 2021): 5.3%

11. Unemployment (percentage of the labor force, September 2021): 8.5%

Public Sector and Taxes

12. Public Sector Budget for 2022 (Draft Bill): US$82.135 billion

13. Total expenses for senators (annual, including salaries, allowances, and parliamentary expenses, 2022 Budget Bill): US$52.1 million

14. Total expenses for members of Congress (annual, including salary, allowances, and parliamentary expenses, 2022 Budget Bill): US$91.6 million

15. Allowances for former presidents of the Republic (annual, including salary, transportation, and offices, 2022 Budget Bill): US$1.1 million

16. Income Tax Revenue (projected for 2022): US$23.472 billion

17. VAT revenue (projected for 2022): US$27.644 billion

18. Revenue from specific fuel tax (projected for 2022): US$2.595 billion

19. Exceptional government measures to support families and businesses during the COVID crisis (2021): US$32.4 billion

20. Individuals subject to income tax (2020, based on 2019 income): 10,437,149

21. Individuals in the income tax exemption bracket (average monthly income below $670,000 in 2020, based on 2019 income): 7,749,288

22. Individuals subject to a marginal income tax rate of 13.5% or more (2020, based on 2019 income): 426,029

Pensions

23. Pension fund withdrawals (total, as of October 8, 2021): US$47.791 billion

24. Total amount managed by AFPs (total, September 2021): US$174,280

25. Average pension paid (monthly, including all types and government contributions, September 2021): $257,556

26. Average self-financed old-age pension paid (monthly, includes all types plus solidarity pension contribution, August 2021): $327,279

27. Average self-financed old-age pension paid to those who contributed between 35 and 40 years (monthly, includes all types plus solidarity pension contribution, August 2021): $593,909

28. Average income of employed persons (monthly, 2020): $635,000

29. Median income of employed persons (monthly, 2020): $420,000

30. Average income of employed persons with tertiary education (monthly, 2020): $977,000

31. Average income of employed persons with secondary education (monthly, 2020): $421,000

There are probably several figures that would be useful for understanding the current debate, but I believe I have covered a wide range of topics. If there is one that should be included and I have not included it, please write to me so that I can add it. That way, the next time you debate, no one will catch you out.

Nathan Pincheira

Chief Economist at Fynsa