Milton Friedman and the Search for a Laissez-Faire Factory
The epicenter of shock ideology is the University of Chicago Economics Department. It came out of the 1950s “in the thrall” (of a) man on a mission to fundamentally revolutionize his profession,” and on that score Milton Friedman succeeded mightily. Friedman, now gone, believed, markets work efficiently and best unfettered of rules, regulations, onerous taxes, trade barriers, entrenched interests and human interference. Whereas Cameron believed electroshocks could restore natural health, Friedman favored economic shock as extreme and destructive to nations as Cameron and CIA’s methods are to human minds.
Friedman taught this voodoo science and believed to the end, all contrary evidence aside, it was perfect and worked. Chicago School fundamentalism developed at a post-war time in the 1950s when leftist ideas supporting worker rights were gaining ground. 
Above photo, men on stage with Mayor Daley speaking. October 15, 2007. Chicago Mayor Richard M. Daley (above right, at podium) speaks at the commissioning of the Chicago Marine Military Academy high school in the old Grant Elementary School building at 145 S. Campbell in Chicago. The Marine military academy high school is the fifth military high school in Chicago, and Daley has announced that in the 2008-2009 school year the Chicago Board of Education will open a sixth military academy public high school, that one an “Air Force” high school. The banner above the stage above is for the military and ROTC programs of Chicago’s public schools. On stage, above, are (left to right) U.S. Congressman Rahm Emmauel, who acquired a half million dollars in earmarked funding for the Marine project, Retired Marine General Michael Mulqueen, and Chicago Schools CEO Arne Duncan. Substance photo by George N. Schmidt.Where they “promised (workers) freedom from bosses, citizens from dictatorship (and) countries from colonialism,” Friedman promised “individual freedom” to choose that appealed to owners of capital who embraced him and his thinking.
It stood in stark contrast to what became known as “developmentalism” or “Third World nationalism” in the post-war developing world. Economists in it favored an “inward-oriented industrialization” strategy to break the cycle of poverty and grow. Like Keynesians and social democrats, they showed it worked in Latin America’s Southern Cone with leaders like Juan Peron “put(ting) their ideas into practice with a vengeance (by) pouring public money into infrastructure projects, (providing) local businesses generous subsidies, and keeping out foreign imports with....high tariffs.” It brought prosperity to the South and “dark days” for Friedman, his acolytes, and freewheeling capitalists losing out to social progress.
It sprung corporate America to action by funding a legion of think tank and Chicago School foot soldiers to change the message and fortunes of their businesses. Friedman was their ideological leader preaching public wealth should be in private hands, rules and regulations out the window, accumulation of profits unrestrained, and social welfare programs curtailed or abolished. In short - deregulate, privatize and get government out of the business of everything besides providing security and enforcing contracts. He also believed taxes were onerous and once said he was “in favor of cutting (them) under any circumstances and for any excuse, for any reason, whenever it’s possible....”
He also said corporations should be exempt from federal taxes claiming what they pay ends up in consumer prices that, in fact, is pure nonsense as every marketing MBA (like this writer) learns straightaway. The fundamental law of pricing is to charge what the market will bear, no more or less. In other words, get all you can but no more than buyers will pay. Soon enough they’d pay plenty in the developing world.
In 1953, the US declared war against “developmentalism” with CIA’s first ever coup against Mohammed Mossadegh in Iran. Another followed the next year in Guatemala, and in both instances democratically elected leaders were ousted because corporate interests opposed them. It was only the beginning, and Friedman and his “Chicago Boys” soon had a real time laboratory to prove their “capitalist utopia” worked.
Salvador Allende’s Popular Unity government electoral victory in 1970 was the opportunity. Three years later he was out, giving Friedman the chance he wanted. Klein related the results in what she called “the first Chicago School state” with others to follow. They’re all the same with “an unstoppable hurricane of mutually reinforcing destruction and reconstruction, erasure and creation” following the crisis. Next is unfettered economic shock therapy with torture and disappearances awaiting resisters and anyone guilty of bad thinking. Friedman’s brave new world was beginning to roll. Its devastation is everywhere including at home.
