The Shock Doctrine: The Rise of Disaster Capitalism

This book is an essential read considering the current economic situation. The vast majority of people including me have no idea of the details of how harmful some economic policies been. This book brings many of those details to light in a way that is both understandable and enthralling. The direct role that the American government and University of Chicago economists have played in both Chile and Russia's disastrous attempts at capitalism are shocking. In fact there are so many things that are shocking, I am somewhat surprised that the book was allowed to be published. (If more Americans read books, it probably would not have been.) Probably the most shocking to me was learning of Dr. Jeffery Sach'sThe End of Poverty: Economic Possibilities for Our Time role in Russia during its rule by Yeltsin. It seems that he has dramatically altered his views on what is a good economic system for a society to thrive.

Disaster Capitalism has been experienced around the world. How much longer will it be before the US gets our shock? If people read this book, hopefully they will be informed and motivated to insist that we have a sound economic system in place.

Considering the global political climate and the way policy decisions are created these days (witness the latest "crisis" of the economic variety in the US, for one), this book ought to be required reading for pretty much anyone who can or will at some point cast a vote, think about joining the political process, or breathe some amount of oxygen in the next 40 years. Understanding the underlying principles of who wields and forces agendas and power across the continents seems to be something that everyone ought to be interested in. Klein does a great job of tying some pretty wildly disparate ideas together and makes it not only relevant but essential to comprehending the world that we have wrought before us.

I suggest that everyone interested in this book listen to or read the analysis of this work at Reason magazine. It goes into more detail than I can here.

Let's get a few facts straight before I move on to my major criticism of this book: First, Friedman was opposed to the Iraq invasion. She completely neglects to mention this. Second, the students at Tiananmen Square were not protesting against the free market---they published a list of demands and turning back free market reforms was not on that list. If they had wanted what Klein claims they wanted, wouldn't they have said as much? Klein simply lies about the goals of the Tiananmen Square protests: She desecrates the memory of that glorious incident and those beautiful martyrs of freedom.

Sadly, there is nowhere nearly enough room to deal with every fallacy in this book. I strongly suggest that you track down each quote she uses and see for yourself whether her use of quotations (and facts) is at all accurate. You will see it is, for the most part, not. So I will focus on her main thesis, if it can be called that, since it isn`t much of a thesis and it really isn`t hers.

Naomi Klein's book is little more than a plagiarism of Leninist rhetoric. Lenin to railed on about the "imperial" nature of capitalism---even though the nation he founded would soon become the most "imperial" power in history. Her work is actually little more than a dumbed down version of Lenin's thesis regarding "excess production." It is a shoddy work of scholarship unworthy of a bachelors thesis. There are no facts supporting her ideas beyond a few misinterpreted remarks by Friedman.

There is no shock doctrine of free markets. Libertarians are, for the most part, a pacifistic bunch who only believe in using force when others use force first. Trying to draw a tie between the policies of the Bush administration and the views of economists like Friedman and Hayek is patently absurd---the Bush administration is not pro-markets: We can see that from the massive nationalization and socialization of the banking industry that is happening right now. The purpose of the "Forward Strategy of Freedom" (the quotes are ironic) was to establish unlimited republican democracy---not free markets. It leaves open the possibility of voting the free market down. Indeed, it allows women to vote in the very sharia law that oppresses them.

The real reason that catastrophes sometimes proceed the emergence of a free market is that free markets are able to adapt to changing conditions more quickly than socialized economies. Indeed, free and unregulated exchange is the natural condition of men when their is no interference from the state. Disasters disturb the operations of the state (and are frequently caused by the state) and so---when the big bully of government is gone---people resort to doing what is natural. Furthermore, many of the shocks Klein talks about occur because of the failures of socialism. Once socialism fails of its own accord (as Friedman, Mises, and Hayek all thought they would), people try "the other guy"---namely freedom.

If socialism were so awesome and correct, how could it be so easily disturbed or shocked by conspiratorial Cobdenites? The only answer---and the correct one---is that the failures intrinsic to socialism cause socialism to fail, not the conspiracies of free marketeers.

Any and all opposition to freedom should be suspect (and this work of shoddy scholarship is no exception). That is a sentiment that should ring true in the heart of every American---indeed, in every human heart. The great bullies of the world have all been fascists, communists, and religious communalists: And it should never been forgotten that two of these groups were unrepentant socialists: the fascists (both German and Italian) [Nazi means National Socialist Workers Party] and the communists were socialists.

One can only hope that Naomi Klein will next turn her thesis to an analysis WWII and claim that Churchill decided to attack the Nazis because he wanted to make way for free markets.

[And if some idiot comes on here telling you how free the German economy was, he can shove it. Confiscating the holding of large parts of your population is not freedom. In Germany the government had final say on how everyone used his property---that is not private ownership.]

The best thing about this book is that neither the book nor its author will ever be dismissed as another case of conspiracy-mania - it is so well built, researched and argumented. In my mind, it obviously follows in the steps of "The Prince" by Machiavelli, since it says not what men should do but what they are actually doing (I am paraphrasing somebody else's praise of Machiavelli's work). For this reason, I believe that this book is a must read for anyone interested in serious understanding of modern politics.
I was tempted though to rate the book not with five but with four stars. I admired the exposure - sometimes even painful to read - of the latest techniques developed by the richest interests in modern powerplays. But I did not find any clear recognition of the fact that society at both national and international levels has to have a rightful place for these interests, since they are an integral part of it. Nor did I see any ideas about a reasonable way forward and a means for other parts of society to engage these rich and powerful interests - in a truly democratic way; that is, ways and means which will allow us to prevent all the worst effects of, and to keep in check greed-driven disaster-capitalistic policies, while at the same time respecting all the democratically legitimate rights of the super-rich who are and, I am convinced, will always be an indispensable and useful part of any modern society - if it is to be free.
How does modern free and democratic society develop media, think tanks, etc, that would be on a par with those put in place by the super-rich?
How does it organise a political action that would be as well staffed and run - and as efficient?
These - and many others - are the very tough questions to be answered. Without answers to them, books like this one hurt us - as they should - but don't provide much help.

The economy is in turmoil; Oh God,
Something must be done now. Don't worry about how it happened.
Hurry, Hurry. 700 billion dollars of the taxpayers' money
must be transfered to the private sector.
Hurry, Hurry. Drain the Treasury before the economy collapses. Oversight will doom all prospects of hope.
The free market uber alles. No regulation necessary. Don't even think of control and prevention of abuses. The market will right itself and all will be well with just a little cash.
Some restriction may apply though...
to you and me.
Don't argue, don't think.
Do it, Do it, Do it.


Buy this book and read it. It is right on the money.