Tuesday, October 16, 2007
I haven't read Naomi Klein's book The Shock Treatment: The Rise of Disaster Capitalism (or her other books). But based on what I've read about it, she's probably going to be misunderstood by some libertarians and free-market economists. Although apparently an attack on corporatism (fascism), the book is bound to be seen as a criticism of the free market. I assumed that Klein would promote such understanding by an imprecise use of terms -- and to some extent she apparently does so. But perhaps I've underestimated her. I caught her appearance on Bill Maher's program the other night, and during her interview she explicitly said that practitioners of crony capitalism have hijacked the rhetoric of the free market to advance their self-serving cause. She drew a sharp distinction between the two systems. "[I]t's certainly not the free market. ...Ironically, it's the free-market ideology that gets used to propel this [corporatist] vision forward. It's not free for anybody but the contractors." (The interview is here.)
Her thesis is that crony capitalists use crises to foist their "reforms" on otherwise unwilling people. Sounds like it should be read in conjunction with Robert Higgs's Crisis and Leviathan.
Although Klein is not an advocate of a true free market, she seems to be an ally in struggle against corporatism. We should cultivate that alliance in public statements about her book and reinforce her inchoate view that being for the market is far from the same thing as being for capitalism.
Cross-posted at Liberty & Power.