Shock Doctrine and Disaster Capitalism

"How We Respond To Crisis Really Is A Choice"

Naomi Klein presents her new book Shock Doctrine on Colbert Nation:


Link

When asked where this is going? Privatization of The Government - private companies rebuilding our infrastructure, using prison labor ("Prison Industrial Complex") - a monied machine in itself.

"The best summary of how the right plans to use the economic crisis to push through their policy wish list comes from Former Republican House Speaker Newt Gingrich. On Sunday, Gingrich laid out 18 policy prescriptions for Congress to take in order to "return to a Reagan-Thatcher policy of economic growth through fundamental reforms." In the midst of this economic crisis, he is actually demanding the repeal of the Sarbanes-Oxley Act, which would lead to further deregulation of the financial industry. Gingrich is also calling for reforming the education system to allow "competition" (a.k.a. vouchers), strengthening border enforcement, cutting corporate taxes and his signature move: allowing offshore drilling.

"What Gingrich's wish list tells us is that the dumping of private debt into the public coffers is only stage one of the current shock. The second comes when the debt crisis currently being created by this bailout becomes the excuse to privatize social security, lower corporate taxes and cut spending on the poor. A President McCain would embrace these policies willingly. A President Obama would come under huge pressure from the think tanks and the corporate media to abandon his campaign promises and embrace austerity and "free-market stimulus."



Note the doctrine of Shock And Awe as proposed by the economist Milton Friedman

"The only hope of preventing another dose of shock politics is loud, organized grassroots pressure on all political parties: they have to know right now that after seven years of Bush, Americans are becoming shock resistant."


We may not remember Argentina's economic crisis - it occurred as 9/11 was the crisis the US was handling - but "History Is Our Shock Resistance" and maybe we can learn from the Argentinian's response to economic failure.

Argentina had been the model of the IMF, they had privatized everything, deregulated, embraced free trade, imported rather than manufactured, decimating their manufacturing sector, cut everything that helped people - education, healthcare, social services - and still the economy "imploded". The middle class lost access to their bank accounts, people rioted and looted, setting bonfires in the street. They responded, not by abdicating power, but instead by completely losing faith in their political leadership. They took on a policy of "everyone must go!" throwing out 5 presidents in 3 weeks. And one great example was, where people were laid off or fired, did the opposite of a strike and WENT TO WORK ANYWAY. This is profiled in the movie The Take. It was a revolt against the ideological model of deregulation, privatization, and cuts to government spending.

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