Tim flays poor Naomi Klein’s impoverished reading of Milton Friedman below, but there are even more bizarre assertions in the interview (which is conducted, unfortunately, by a fawning John Cusack).
Klein claims that times of crisis, such as the aftermath of terrorist attacks, are the most fertile moments to “push through radical free‐market policies” against the will of the American people. This, of course, defies all systematic study of such things, which has proved to the contrary that the State, not the private sector, is the beneficiary of such environments. For starters, go to the books by Bruce Porter or Robert Higgs. There is a wealth of literature out there on this topic, and any undergraduate with a passing interest in the subject should be familiar with it. Such knowledge would preclude making the type of nutty claim that Klein does.
But even if one limits his analysis to, say, life under the Bush administration, one would be hard‐pressed to point to the “radical free‐market policies” which the administration has successfully and quietly spirited into American society in the wake of 9/11. Remember, for example, the widely‐debated and spectacularly unsuccessful Bush approach to trying to partially privatize Social Security. Or, for a broader look, refer to my colleague Steve Slivinksi’s conclusion two years ago that
Even after excluding spending on defense and homeland security, Bush is still the biggest‐spending president in 30 years…
Total government spending grew by 33 percent during Bush’s first term. The federal budget as a share of the economy grew from 18.5 percent of GDP on Clinton’s last day in office to 20.3 percent by the end of Bush’s first term.
Those don’t sound like stealthily enacted radical free‐market policies to me. To the extent that Klein gestures toward these facts in the interview, she seems to protest that she’s not against government exploitation of crises per se, but rather is disgusted that the beneficiaries of this largesse may include private sector companies. For example, Klein is aghast that “food” and “pest control” in Iraq are provided by private companies. The horror!
One might expect this type of nonsense from Klein, but it’s really disappointing to see John Cusack do the interview with his eyebrows raised about an inch and a half above his eyes, apparently floored by Klein’s analytical brilliance. A shame, really–the guy’s made some pretty good movies.