Nevertheless, Congress had not previously challenged a plurality, and moderate Christian Democratic deputies were not ready to start now. Allende had substantial executive and economic powers. Only Congress, however, could vote taxes or ratify new laws. Allende apparently believed that the borrowed prosperity could continue indefinitely, encouraging Left-wing Christian Democrats and other moderate elements to join his coalition out of self interest. The next year, however, the economy began to unravel as inflation exploded.
Speculation is an inevitable result of price freezes and price controls.
The US government and expropriated copper companies blocked foreign aid programs and further investment. The level of us intervention in Chilean affairs is documented in the US Declassified Documents library. The level of us intervention in Chilean affairs is documented in the US Declassified Documents library. B. Blocking supposedly anti-inflationary tax increases. Strikes and lockouts, not necessarily for bona-fide economic purposes.