| | Exhibit A against Friedman is a quote from what Klein calls "one of his most influential essays": "Only a crisis-actual or perceived-produces real change. When that crisis occurs, the actions that are taken depend on the ideas that are lying around. That, I believe, is our basic function: to develop alternatives to existing policies, to keep them alive and available until the politically impossible becomes politically inevitable." This, says Klein, is "the shock doctrine." In a not-very-subtle short film based on the book, the quote appears over images of prisoners being tortured.
The quote is not, in fact, from one of Friedman's most influential essays; it's from a very brief introduction to a reprint of his book Capitalism and Freedom. And it is not a rationale for welcoming disasters; it's about the uncontroversial fact that people change their minds when the old ways seem to fail. Friedman provides a telling example, which Klein neglects to quote: Young Americans joined him in opposing the military draft after the Vietnam War forced them to risk their lives on another continent.
[...]
Klein twists this relationship beyond recognition, claiming Pinochet's 1973 coup was executed to allow free market economists ("the Chicago Boys," as the economists from Friedman's University of Chicago were called) to enact their reforms. This false link is crucial for giving the impression that the Friedmanites have blood on their hands, since the most violent period of the regime came right after the coup. But Friedman's visit, which Klein claims started the real transformation, came two years later. Klein insists on having it both ways.
[...]
The strangest thing about Klein's suggestion that crises benefit free markets and limited government is that there is such a long record of the exact opposite. World War I led to communism in Russia; economic depression gave us Nazi Germany. Wars and other disasters are rarely friends of freedom. On the contrary, politicians and government officials often use crises as an opportunity to increase their budgets and powers. As one prominent economist put it while explaining his opposition to war in Iraq: "War is a friend of the state....In time of war, government will take powers and do things that it would not ordinarily do." The economist? Milton Friedman.
Friedman was right about the Iraq war: The Bush administration has used that conflict and the larger War on Terror to dramatically expand the federal government's powers and expenditures. Bizarrely, Klein points to the U.S. after 9/11 as a major illustration of her thesis. She claims the terrorist attacks gave the Bush administration an opportunity to implement Friedman's ideas by benefiting friends in the defense and security industries with new contracts and unprecedented sums of money. Klein never clearly explains how this could possibly be Friedmanite. In the real world, Friedman "had always emphasized waste in defense spending and the danger to political freedom posed by militarism," in the words of his biographer Lanny Ebenstein. Somehow, Klein has confused Friedman's limited-government liberalism with corporatism.
[...]
In the absence of serious arguments against free markets, we are left with Klein's reasonable critiques of torture, dictatorships, corruption, and corporate welfare. In essence, her book says that Milton Friedman's limited government ideals are bad because governments are incompetent, corrupt, and cruel. If there is a disaster here, it is not one of Friedman's making. |
