The Shock Doctrine

Naomi Klein throws a massive critique against the United States federal government in this 500 pager. Her real target, though, is economic architect, Milton Friedman (and company). A few key definitions:
The Shock Doctrine: "Only a crisis--actual or perceived--produces real change. When that crisis occurs, the actions that are taken depend on the ideas lying around. That, I believe, is our basic function: to develop alternatives to existing policy, to keep them alive & available until the politically impossible becomes politically inevitable." -Friedman, Capitalism & Freedom
Disaster Capitalism: Orchestrated raids on the public sphere in the wake of catastrophic events, combined with the treatment of disasters as exciting market opportunities.
Chicago School Economics: Friedman's economic program in opposition to Keynesian economics. The Chicago School consists of three pillars:
1. Privatization of all industries
2. Deregulation
3. Cutbacks in government public spending
and two cherished claims:
1. The triumph of deregulated capitalism has been born of freedom.
2. Unfettered free markets go hand in hand with democracy.

Klein sets the mood of this critique with a detailed report of the work of Ewen Cameron, a "shock doctor" who literally electrocuted his "patients" to erase their memories and begin anew with a clean slate. The CIA would later employ very similar tactics to "break" their captives. She uses torture as a metaphor: "After being traumatized, people renounce what they would have previously fiercely defended." Klein continually compares this torture with the actions of the USA fed. and extremely wealthy multinational corporations. She refers to this conglomeration as the "disaster capitalism complex," John Perkins refers to the same thing as the "corporatocracy". Just like Dr. Cameron tried to shock his patients into a clean slate, so too has the disaster capitalism complex applied Economic shock therapy. It started in Chile.

The people of Chile democratically elected the socialist, Salvador Allende, in 1970. He strongly supported nationalizing a number of resource industries previously run by US and other foreign companies, most notably copper mining and telephone companies (such as ITT). Because these companies had a lot to loose, they conspired with the White House and CIA under the administration of Richard Nixon as well as Chilean military leaders to plan a coup to oust Allende. Gen. Pinochet, the authoritarian dictator, appointed Chicago economists to financial positions and began implementing free market strategies. Shortly after, local manufacturers went out of business, cost of food and basic necessities soared. Healthcare and education took the biggest hit from extreme budget cuts. The country entered a severe 10 year recession. Even in 2007, the economic stability is not really a success given how unevenly the wealth is distributed.
She goes on the describe what happens when economic shock therapy is applied in:
China after Tienanmen Square Massacre (1989)
Russian under Boris Yeltsin (1993)
Iraq after United States' and G.B. invasion (2003)
Louisiana after Hurricane Katrina (2004)

What emerges in all of these places?????
A powerful ruling alliance between a few very large corporations and a class of mostly wealthy politicians with hazy and ever-shifting lines between the two groups. Klein says the timing to impose their new order is crucial, because a crisis is a gap in politics as usual when the need for consent and consensus do not seem to apply. But unfettered free market ideas have been so unpopular that they had to be enforced by police, military and martial law.

The United States has not declared war since 1941. That's because war is unpopular and expensive. But that obviously hasn't stopped US. forces from fighting them on executive orders. Wars are incredibly lucrative for business whose business plans bank on selling guns, helicopters, barricades, tanks, etc. And guess who funds these warmongers? The federal government (ie. taxpayers).

Consider for a moment these corporations and how they benefit from active warring (especially in nations holding vast caches of resources):
Yukos Oil
Bechtel
Halliburton (Dick Cheney)
Lockheed Martin (Lynne Cheney)
Gilead pharmaceuticals (Donald Rumsfeld)
Exon Mobile
Chevron
BP
World Bank
International Monetary Fund

Economic ideology and political ideology are often separated so that the first will not be tainted by the crimes of the second. Take Chile for example. The economic ideology in play was Friedman's Chicago School Economics. The political ideology was the word of Gen. Pinochet. But in this case and so many others, the economic agenda is the purpose behind political upheaval. Without the promise of fattened wallets from foreign investors, dictators and military leaders are much less likely to bring a civil war to their country.

Execute power moves have been rampant in the last 30 years. We need to start impeaching presidents who go to war unapproved by congress. If you want public decisions to continue moving away from congress and toward the white house, vote for Perry, Romney, or Obama.
As Alexander Hamilton warned in The Federalist Papers, "It is of the nature of war to advance executive power at the expense of legislative authority."
And remember Eisenhower's warning, "Beware the industrial military complex."