Chile is often praised as a capitalist oasis, a prospering and stable nation on a continent where both prosperity and stability have been in short supply. But that prosperity has accumulated mostly in the hands of a lucky few. As a result, Chile has one of the highest levels of economic inequality in the developed world.

Now that inequality is threatening the country’s stability. Santiago, the capital and largest city, has been convulsed by protests that were sparked by an increase in subway fares but that have become an expression of broader grievances: against the poor quality of public health care and education; against low wages and the rising cost of living; against the meager pensions that Chileans receive in old age.

Sebastián Piñera, the billionaire elected president in 201 7, initially responded with belligerence, declaring the Chilean government “at war” with the protesters, some of whom have burned buildings and subway stations and engaged in looting — behavior that is undoubtedly criminal and reprehensible.

But most of the protesters are engaged in the peaceful exercise of their democratic rights. And on Tuesday, a chastened Mr. Piñera acknowledge his administration and its predecessors had failed to address their legitimate grievances.