The present article brings to light the effects of neoliberalism on the music education system in Chile, one example of such a system in Latin America. Relevant research literature is analyzed without the intention of achieving a theoretical universality regarding the effects of neoliberalism on music education. The article reveals that neoliberalism has negatively influenced Chilean music education in at least five areas: facilities and provisions, curricular conception and delivery, professionalism, social segregation justified on the basis of the constitutional right of academic freedom, and an individualistic mindset. It concludes with an argument asserting that Chile is in need of a new social paradigm because the identified neoliberal patterns were found to have extraordinarily negative effects not only in education, but in other public services. International implications are suggested.