This week I wanted to do something different. I remember that, in my Economic Policy course toward 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, gone through the entire macroeconomics curriculum brought over by Oscar Landerretche from MIT, served as teaching assistants more than 20 times, 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—not a single person—raised their hand. Economics students at the most prestigious economics school in the country didn’t know what Chile’s annual GDP was.

Obviously, I can only speak for myself and the classmates who were in the room with me at the time. The question, of course, was intentionally designed to elicit the reaction it did 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’ll never forget that day, since, as a teacher, I’ve since made it a point to ensure that my students have a clear understanding of at least the most basic figures of the national economy, so that when they enter a debate, they have a solid grasp of what they’re talking about. Especially if they’re running for the presidency. That is why, in the following paragraphs, I will list the figures that I believe the reader absolutely must know in order to understand at least a little of what we are discussing.

Macro

1. Chile's GDP (annual, 2020): US$253,693 million

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 (October 2021 average): $30,214.61

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

9. Central Bank inflation target (annual change in the CPI, over two years): 3.0%

10. Inflation (year-over-year change in the CPI, September 2021): 5.3%

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

Public Sector and Taxes

12. 2022 Public Sector Budget (Bill): US$82,135 million

13. Total Expenditures for Senators (annual, includes salary, allowances, and parliamentary expenses; 2022 Budget Bill): US$52.1 million

14. Total Expenditures for Members of Congress (annual, includes salary, allowances, and parliamentary expenses; 2022 Budget Bill): US$91.6 million

15. Allowances for former presidents of the Republic (annual, includes salary, travel, and office expenses; 2022 Budget Bill): US$1.1 million

16. Income Tax Revenue (projected for 2022): US$23,472 million

17. VAT Revenue (2022 Projection): US$27,644 million

18. Revenue from the specific fuel tax (projected for 2022): US$2,595 million

19. Exceptional government measures to support families and businesses during the COVID-19 crisis (2021): US$32,400 million

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

21. Individuals in the income tax-exempt 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 higher (2020, based on 2019 income): 426,029

Pensions

23. Pension fund withdrawals (total, as of October 8, 2021): US$47,791 million

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

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

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

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

28. Average income of employed individuals (monthly, 2020): 635,000 pesos

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

30. Average income of employed individuals with a college education (monthly, 2020): 977,000 pesos

31. Average monthly income of employed individuals with a high school education (2020): $421,000

I've probably left out a few figures that would be useful for understanding the current debate, but I think I've covered a broad range of topics. If there's anything that should be included but I haven't added, please write to me so I can include it. That way, the next time I debate, no one will catch me off guard.

Nathan Pincheira

Chief Economist at Fynsa