New Podcast: Obama’s Shock Doctrine

Naomi Klein, author of The Shock Doctrine: The Rise of Disaster Capitalism, says free-market advocates spend their careers stockpiling free-market ideas waiting for a crisis that could be used as a springboard for implementing those ideas. But, as David Boaz asks, what about Obama’s policy proposals amid recession and financial crisis?

In today’s Cato Daily Podcast, Boaz exposes Obama’s Shock Doctrine:

We know from history that, while there are a few examples of free-market or somehow right-wing programs coming about after a crisis, usually what happens in a crisis is government seizes more money and power. And you can see that in the New Deal; the Great Depression led to the New Deal. You can see it after Kennedy’s assassination led to Lyndon Johnson and his 100 days of legislation. You can see it in practically every communist government that ever came to power, was in the devastation of war….

We had a financial crisis and what happened? Did the incumbent Republican administration say, now’s our chance to implement Milton Friedman’s program and privatize and deregulate? No, they did what governments always do: they expanded their own powers at the expense of civil society, and so in that sense, Obama’s just doing the same thing that Bush did. We could call this the Bush-Obama era.

It was, after all, Rahm Emmanuel who said, “You never want a serious crisis to go to waste. This crisis provides the opportunity for us to do things that you could not do before.”