Why did falling saltpeter sales create political unrest in Chile after World War I?

Following World War I, the decline in saltpeter sales triggered a sharp downturn in the Chilean economy, which had historically relied heavily on mineral exports. This economic contraction led to rising inflation and widespread financial hardship, fueling significant dissatisfaction among the middle and working classes.123

The resulting political instability was characterized by the following developments:

• Social Unrest: The economic crisis intensified social tensions, leading to increased support for reformist leaders such as Arturo Alessandri Palma, who was elected in 1920.3
• Military Intervention: When the legislature obstructed social reforms, middle-class army officers intervened in 1924 to force the passage of new labor and welfare legislation.3
• Political Volatility: The period between 1924 and 1932 was marked by extreme instability, with 21 cabinets forming and dissolving as the nation struggled to replace the traditional oligarchy with a new political structure.3
• Economic Reform Attempts: Under the dictatorship of Carlos Ibáñez del Campo (1927–1931), the government attempted to stabilize the economy by partially nationalizing saltpeter mines and developing new industries, though these efforts failed to dismantle the underlying power of the oligarchy.3