You point out a couple of ways in which Chile or Argentina were not pure lily white free market states. Therefore, Friedman is vindicated.
The problem here is not that Chile or Argentina were somehow just ever so slightly blemished free market states. The kind of crony capitalism that went on is not free market capitalism.
I watch people insist that Goldberg's new book Liberal Fascism is somehow in complete error because liberals would never support the Nazi racism and nationalism. This ignores that many of the domestic policies of Hitler's Germany and Mussolini's Italy had a lot in common with liberal politics of the time and even of today. So, if we're going to argue that Chile was some sort of example of unadulterated free market capitalism, then let's all agree that Goldberg is right and fascism is basically liberal/socialist at heart. And I suppose next someone is going to tell me how China is a libertarian paradise.
Actually, I tend to believe and there is evidence aplenty that the purist view is essentially part of the problem. It is nearly religion. It is a purism of which economists and military worked together to "cleanse" society of any impurities. The interrogators in Chilean death camps would tell their victims that they needed to be cured. It mimiced the racial purity of Nazism.
Not at all like the socialist leaders who imprisoned or killed "enemies of the state". But please, by all means, find me some statement in Friedman's words that supports "cleansing" society in the manner your describing or anything remotely similar. I'm not saying Friedman was a saint, but let's not conflate free market ideas with authoritarianism. Yes Pinochet and others may have done so, but that hardly means we should make the same mistake.
So where was the freedom in these countries? Elections were gone. Political parties were outlawed. Freedom of assembly and the press were gone. Trade Unionism was obliterated. The freedom to disagree with the government was gone. The freedom to disagree with Milton Friedman's beliefs was gone. Did free markets = free people. Hell no! To "free the markets" it took torture, death, murder, disappearing, rape. The people targeted were the working class, unionists, poets, musicians, journalists, professors, peasants and it went into the heart of society UP. Chile made it illegal to have students give group reports, because that defied the logic of individualism. Think about that.
Again, they didn't have free markets. And they didn't have them because the governments were authoritarian, as you just illustrated. If anything, we do not see here examples of free markets=fascism, but rather that free market ideas mixed with tyranny don't work.
So if I sound passionate about it, it is because I am. These people laid waste, not just to leftists, but to an entire culture and society. And worst of all...the United States supported it, not just with money, but with active participation of agents and corporate interest.
And you'll get no argument from me there. I'm no fan of that.
Milton Friedman always claimed to separate the economics from the horror of the realities in those countries - but that was the worst lie of all. Do you hear many people avidly separating Nazi economic policies from their other policies? No, it went hand-in-hand. There was no Nazism without anti-Semitism.
How about Soviet Russia's economic policies? Are those separate from, say, Stalin's atrocities? Is socialism responsible for the government sanctioned deaths and rights violations that went on in the U.S.S.R.? I don't believe you'll say yes to that. I think maybe you might even argue that Soviet Russia was not really a good example of socialism. But I'm supposed to believe Chile was some sort of example of free market ideas being inseparable from Pinochet's tyranny? Go on, pull the other one.
First of all, let me say that I knew that you would not be one of the libertarians who would defend Pinochet or what took place in Chile, Argentina, Brazil, or Uruguay.
I'm not attacking libertarianism, or saying that one cannot support the free market without supporting tyranny. What I am saying is that Milton Friedman did not support such a notion (in fact he later wrote a book that stated that "change requires a crisis" and that the crisis leaves a void where one has to be ready with his or her ideas. It was a strong refutation of the idea that free markets naturally bring freedom (or vice versa).
The "Chilean Economic Miracle" was a myth, at least when viewed from multiple economic indicators. Yet, it was vigorously promoted by Friedman, Harberger, and the deified von Hayek. The latter wrote a letter praising Chile and Pinochet to Maggie Thatcher. Hayek instructed Thatcher to emulate Pinochet. Thatcher wrote back to her economics mentor that she would, but that Britons would not accept the "Chicago Boys" reforms and that British democratic institutions and traditions prevented her from implementing many of the necessary steps Chile's junta took and von hayek lavished praise upon.
Think on that UP. The man who wrote
Road to Serfdom, a veritable god amongst right wing economists was in love with Chilean economics. His pupil, the Iron Lady, was blocked by what? The very democratic institutions that made Britain a western, free country. (I have the bibliographical details of the letters at home, I will get them for you).
That's what makes my stomach churn the worst. That Friedman and von hayek and Harberger were whitewashed from their roles in the Southern Cone (in fairness, von Hayek simply lavished his praise on it, he never played the direct role in the countries that the other two did). So while the Soviets get rightly blasted for the role of the KGB and the Gulags, neoliberalism trudges onward like OJ Simpson - guilty of crimes against humanity - but free to walk the streets, in complete arrogance as if everything was golden, the bloody knife in a trophy case at home.
Can free markets exist without cronyism? Can they exist without the death camps or torture chambers? I don't know (with advocates such as you, I tend to think it is feasible). Historically, we've never seen it. The United States is certainly not the bastion of freedom we've claimed to be. Historically, we've supported some of the world's most nightmarish regimes and literally wrote the book on torture.
Socialism can. It did not in the Soviet Union. You are right to criticize that. But it exists very well in Denmark, Sweden, Norway, and other nations where the economies do well and so do the people with no gulags, and no re-education camps.
The "liberal fascist" thing is another discussion, not really worth the effort. Fascism does not recognize class warfare. It is pure corporatism, similar in many ways to neoliberalism, except that Fascists were willing to work with unions and neoliberals cut out that third point of the triangle (the other two are government and corporations).