The New Road to Serfdom: The Shock Doctrine

"In the early ’80s, as Margaret Thatcher attempted to hack away at England’s substantial public sector, she found a frustrating degree of public resistance. The closer she got to the bone, the more the patient wriggled and withdrew. Thatcher doggedly persisted, yet her pace wasn’t fast enough for right-wing Austrian economist Friedrich von Hayek, her idol and ideological mentor. You see, in 1981, Hayek had traveled to Gen. Augusto Pinochet’s Chile, where, under the barbed restraints of dictatorship and with the guidance of University of Chicago-trained economists, Pinochet had gouged out nearly every vestige of the public sector, privatizing everything from utilities to the Chilean state pension program. Hayek returned gushing, and wrote Thatcher, urging her to follow Chile’s aggressive model more faithfully.

In her reply, Thatcher explained tersely that “in Britain, with our democratic institutions and the need for a higher degree of consent, some of the measures adopted in Chile are quite unacceptable. Our reform must be in line with our traditions and our Constitution. At times, the process may seem painfully slow.”

The Hayek/Thatcher exchange is one of many revealing historical nuggets unearthed in The Shock Doctrine: The Rise of Disaster Capitalism, Naomi Klein’s ambitious history of neoliberalism. Hayek isn’t the star of The Shock Doctrine—that dubious honor goes to his protegé and fellow Nobel Laureate Milton Friedman. But Klein’s totemic, capacious and brilliant alternate history of the last three decades of global political economy can best be understood as a latter-day response to Hayek’s classic right-wing manifesto, The Road to Serfdom."

Read more of Christopher Hayes review on Naomi Klein's The Shock Doctrine: The Rise of Disaster Capitalism at In These Times.

Watch Klein's short movie The Shock Doctrine.

The Road to "Free Market"

Chile, 1973
50,000 tortured
80,000 imprisoned
Public spending cut by 50%
Incomes for the rich up 83%
45% of population in poverty

Invasions – Iraq, 2003
The most privatized war in modern history
US decrees 200 state companies will be privatized
Hundreds of thousands killed
4 million displaced

1 comment:

The Price of Schpin said...

Don't forget that the drumbeat for deregulation in the banking industry and the Bush administration members who marched to it are largely responsible for the mortgage crisis we see today. Free Market Schmee Market most of these "bankers" are greedy unscrupulous crooks who are driving the American and possibly the World economy into a tailspin.