The 1970s were times of great change in South America, with peasants and workers organizing for what they thought was a better life, looking up to communism. This was a severe threat to American corporate interests, and Salvador Allende, (Chile's President before the coup d'état) was a socialist on the side of the workers.

Allende supported the strike of copper miners, and nationalized the copper mines. These were controlled by American corporate interests, and they did not take this threat lightly. Allende was also a strong supporter of Fidel Castro.

The US accused the Allende government of promoting Soviet interests in Latin America as Allende nationalized US companies. Investors from the US company International Telephone and Telegraph (ITT), who owned 70% of the Chilean Telephone Company (Chitelco) thought that the Chilean government would nationalize its assets there, and pressured ITT to put the US government through their connections and lobby groups.

Export income fell due fell in both production and price on international markets of copper, the most important export of Chile.

From Wikipedia: "Chilean politics ascended to a state of civil unrest amid strikes, lockouts, economic sanctions, CIA-sponsored propaganda, and a failed coup in June 1973".

There was a annual inflation rate of over 900%. Some people think Allende would have been overthrown by the Chilean army with or without US support.

According to the CIA, although they supported the military Junta, after the overthrow of Allende they had reservations about Pinochet being President. However, he ruled Chile for 17 years. Later it was recognized worldwide he was a brutal dictator and attempts were made to prosecute him in courts.

For further information check the declassified documents from the US Government in the George Washington University Webpage (See related links)

The very first people got to Americas by walking. About 2,000 something years ago people from India and Asia crossing Bering Bridge(Serbia, Russia to Alaska, U.S), at that time the Ice connected Russia to Alaska. So people could cross from Asia to Americas. These people were the Indians, later called Native Indians or Native Americans.

And thereafter much later in 1492, when Columbus travelled to Americas, many European nationals started coming by sea-routes by ships.

He won against Spaniards and freed south America.

Simón José Antonio de la Santísima Trinidad Bolívar Palacios y Blanco is said to be the George Washington of South America. He liberated them from Spanish power after a long hard fought war in which many times the opponent believed he had given up. In 1823, Bolívar took command of the invasion of Peru and in September arrived in Lima with Sucre to plan the attack. On 6 August 1824, Bolívar and Sucre jointly defeated the Spanish army in the Battle of Junín. On December 9 Sucre destroyed the last remnant of the Spanish army in the Battle of Ayacucho, eliminating Spain's presence in South America.

Keynesian (John Keynes) economics is all about using monetary and fiscal (Government) policies to help direct the market towards equilibrium. Keynes didn't believe that the market was self-correcting, and thus required government involvement. Keynesian economics also uses the view that prices are constant in the short term and only adjust in the long term (sticky price theorem). This delay in price adjustment pulls the market away from equilibrium.

Classical Economics (Adam Smith) is based on the idea that an "invisible hand" controls the market place and government involvement just creates an inefficient market place. Adam Smith believed that basic supply and demand is capable of maintaining a marketplace equilibrium. Prices are self adjusting and the market reacts immediately to changes thus maintaining equilibrium in the long run and short run. Government policies such as taxes lead to price distortion that can skew consumer rationality, thus leading to disequilibrium (is that even a word?!...unequilibrium??).

Both these views have faults: Classical failed during the Great Depression - this wouldn't happen if there really was an 'invisible hand' to smooth out the economy.

Keynesian was ineffective during the stagflation (high inflation and low employment) of the 1970s, there isn't a policy that can effectively combat both these variables.

Classical Economics (Adam Smith) is based on the idea that an "invisible hand" controls the market place and government involvement just creates an inefficient market place. Adam Smith believed that basic supply and demand is capable of maintaining a marketplace equilibrium. Prices are self adjusting and the market reacts immediately to changes thus maintaining equilibrium in the long run and short run. Government policies such as taxes lead to price distortion that can skew consumer rationality, thus leading to disequilibrium (is that even a word?!...unequilibrium??).

Both these views have faults: Classical failed during the Great Depression - this wouldn't happen if there really was an 'invisible hand' to smooth out the economy.

Keynesian was ineffective during the stagflation (high inflation and low employment) of the 1970s, there isn't a policy that can effectively combat both these variables.