On September 11, 1973, a military coup forced the democratically elected Chilean President Salvador Allende out of power. After the coup Augusto Pinochet established himself as the leader of Chile and set up a military dictatorship with the heavy involvement of his army. During this regime, Pinochet used repressive measures to suppress opposition to his rule, and supported politics that divided any opposition groups. Pinochet moved the country’s economic system away from socialist policies towards a market economy, gaining the support of the pro-capitalist portions of the
In February 1931, in the face of an economic crisis, the Chilean Congress granted President Carlos Ibáñez Del Campo authority to enact any necessary measures to keep Chile from further depression. As the value of exports dropped and unemployment rose, Ibáñez increased taxes, stopped public works projects, and cut governmental wages. He also announced that he would maintain order with military force if necessary.