The right to work

What does one call a state whose Senate says "no" to its public employee unions for strikes and collective bargaining? Perhaps Wisconsin, but in fact Chile. Seems it still likes being tops in economic freedom and growth.

After two days of debate, a proposed change to Chile's constitution allowing collective bargaining privileges and a "right" to strike for public unions was voted down. The change got just 21 votes, four short of a two-thirds needed. Even many of the left-leaning opposition abstained.

But you can't say they didn't try.

"Chile is the only country in the world whose constitution forbids collective bargaining and the right to strike, so we have to take care of this situation," Chilean Sen. Patricio Walker argued.

"This motion is a fundamental right enshrined in workers, whatever their performance level, and gives effect to the (United Nations') ILO Convention 151," said Sen. Pedro Munoz, reminding the public just why it shouldn't support the bill.

All this is relevant because Chile is the first nation whose return to democracy was based on economic freedom. On global economic freedom rankings, Chile stands near the top — in part because its public employees can't run up debt or corrupt the political process.

The existing constitution makes Chile a full right-to-work country and expressly prohibits government collective bargaining and public employee strikes.

The idea is to prevent the ugly anti-democratic dynamic — now seen in Wisconsin and elsewhere — of public employee unions extorting concessions from politicians in exchange for campaign support.

Under that system, taxpayers foot the bill. The team of Milton Friedman-influenced economists known as "The Chicago Boys" understood this dynamic well and its potential for cutting into economic freedom.

Labor and Social Security Minister Jose Pinera, who wrote the right-to-work proviso, knew that if public employee unions could get their hooks into the federal government, it would be a fiscal and economic disaster.

Chile posted 7% GDP growth in the last quarter, on par with recent trends. Per capita income is now $17,000, 10 times what it was in 1980, and its successful social security system is now private.

Chile's vote shows it has no desire to follow in the footsteps of bankrupt U.S. states like California and Illinois. It's good to see a nation that still knows how to grow.