Sunday, April 18, 2010

On Naomi Klein on Milton Friedman

The New Republic:

Klein locates the beginnings of the shock doctrine in Chile, where in 1973 a military coup led by Pinochet displaced a democratically elected socialist government, and implemented economic policies urged upon him by Friedman and other Chicago School free-marketers. Chile offers the closest example of a case study that fits Klein's thesis. But even here the facts do not fit quite as tightly as she would like. Through most of her narrative, Klein depicts Pinochet as a pure puppet of Friedman. "For the first year and a half," she writes, "Pinochet faithfully followed the Chicago rules." But a half-dozen pages later, while explaining away the impressive economic growth that followed under Pinochet, she writes that "it's clear that Chile never was the laboratory of 'pure' free markets that its cheerleaders claimed." More generally, she seems incapable of understanding that authoritarianism of the sort represented by Pinochet may be as moved by a lust for power as by a lust for profits. They are not the same phenomenon.

[...]Klein calls the neocon movement "Friedmanite to the core," and identifies the Iraq war as a "careful and faithful application of unrestrained Chicago School ideology" over which Friedman presided. What she does not mention--not once, not anywhere, in her book--is that Friedman argued against the Iraq war from the beginning, calling it an act of "aggression."
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