Just after midnight, a small gray van pulled up at a downtown Santiago bar. Within moments, anxious Chileans were swarming around it and buying low-grade black market meat at twice the officially pegged pricedespite the fact that national police headquarters was just 2½ blocks away. Day and night, long lines stretch in front of shops as people wait and hope for the chance to buy a pack of cigarettes, a bag of sugar, some powdered milk or cooking oil.
Troubled Chile is now worse off than ever, and officials of President Salvador Allende's far-leftist government have been rolling out...