Prescriptive Policies Undermine the Freedom to Innovate

“Chile’s recent rejection of a new constitution highlights that democracies do not want to be micromanaged. Chile’s proposed constitution included 388 articles outlined in 170 pages enshrining a series of prescriptive rules as the law of the land. Luckily, the people of Chile soundly voted it down. Passage would have reversed the “Miracle of Chile,” a term coined by Milton Friedman to describe the replacing of a military junta in 1990 with a free-market system resulting in decades of economic growth – a system that made Chile one of the most prosperous and stable economies in Latin America.”