The Shock Doctrine Page #2
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- Year:
- 2009
- 79 min
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Milton Friedman, from this university, waged a war against the "New Deal".
Friedman was member of a group called the Mount Pellerin Society,
led by the austrian economist Friederich von Hayek.
They believed that if governments stopped providing services,
and stopped regulating markets,
In the 50's they where seen as kranks
But the las 30 years
their ideas had become but dominant economic doctrine.
The thesis of the "Shock doctrine" is
that we've been sold a fairy tale
about how this radical policies have swept the world.
That they haven't swept the globe on the backs of freedom and democracy
but they have needed shock, they have needed crisis, they have needed states of emergency.
Milton Friedman understood the utility of crisis.
Only a crisis, actual or percieved, produces real change.
When that crisis occurs
the actions that are taken, depends on the ideas that are laying around.
La Primera Prueba:. Chile
It was in Chile, that Friedman's disciples first learned
how to exploit a large scale shock or crisis.
University of Chile
Usually, the official story tellers of neoliberalism, the official publicists
don't even mention Chile.
They start the story with Thatcher and Reagan, because it's much more flattering that way.
In the 50's and 60's
Chile's progressive developmental policies were a beacon in the region.
Government invested in health, education and industry.
American corporations were worried their investments would suffer.
In response, the US state department
began sponsoring students form Chile and the rest of South America
to study free market economics with Milton Friedman.
The University of Chicago had an agreement
with the Catholic Univesity of Chile
through which a great many Chilean students came to the University of Chicago
they were trained by us and recieved PhD
These students went back and tought in Chile.
The economics department of the Catholic University in Santiago
became a little Chicago School.
Arnold Harberger, the economist in charge of the program
described himself as a "seriously dedicated missionary".
In 1970, Salvador Allende's Popular Unity government
won the election on a platform of nationalisation of large sectors of the economy.
Chile's phone company was majority owned by US corporation ITT.
ITT headed the attempts to stop Allende to become president
it had the support of president Richard Nixon in the White House.
I was not ther, but i can
tell you what we now know to be a fact.
He ordered the CIA to prevent Allende from assuming the presidency.
Indeed, they tried to get me to lean on the chilean military
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