Chapter 5: “Entirely Unrelated” How an Ideology was Cleansed of its Crimes
(Previous posts here, Sarah’s posts here.)
Why is it that capitalism’s crimes are divorced from the ideology itself, while Marxism is joined at the hip to the atrocities of the USSR and Revolutionary China?
In Chapter 5, Klein examines how neoliberalism managed to wash itself of the many, many atrocities committed by its acolytes in the Southern Cone, ironically in the name of ‘cleansing’ polluted economic systems. She contends that, by focusing on generalized ‘human rights violations’ rather than exploring the systemic and ideological foundations underneath, well-meaning organizations such as Amnesty International essentially played the role of useful idiots. It wasn’t Friedman’s fault (much less neoliberalism’s) that a few ‘bad apples’ went a bit too far with their security policies while trying to ‘reform’ their ‘impure’ economies.
So, the horrific human rights abuses perpetuated by the likes of Stalin and Mao are used to define and smear an entire political and economic school, while Pinochet or the Junta in Argentina are written off as isolated incidents, nothing to do with the drive to liberalize markets by any means necessary.
As the global economic crisis continues unabated, we find ourselves at a crossroads. Do we write off the current situation as the result of bad luck, incompetence, a few bad apples at AIG getting unearned taxpayer-funded bonuses, Bernie Madoff’s now-infamous Ponzi scheme? Or do we take the opportunity to honestly look at what REALLY brought us to this point?
Matt Taibbi believes we need to examine and come to terms with the deliberate, malicious systemic abuses and deficiencies that, for too many years, have allowed shady speculators to essentially roll the public, repeatedly:
So it’s time to admit it: We’re fools, protagonists in a kind of gruesome comedy about the marriage of greed and stupidity. And the worst part about it is that we’re still in denial — we still think this is some kind of unfortunate accident, not something that was created by the group of psychopaths on Wall Street whom we allowed to gang-rape the American Dream. […]
People are pissed off about this financial crisis, and about this bailout, but they’re not pissed off enough. The reality is that the worldwide economic meltdown and the bailout that followed were together a kind of revolution, a coup d’état. They cemented and formalized a political trend that has been snowballing for decades: the gradual takeover of the government by a small class of connected insiders, who used money to control elections, buy influence and systematically weaken financial regulations.
The crisis was the coup de grâce: Given virtually free rein over the economy, these same insiders first wrecked the financial world, then cunningly granted themselves nearly unlimited emergency powers to clean up their own mess. And so the gambling-addict leaders of companies like AIG end up not penniless and in jail, but with an Alien-style death grip on the Treasury and the Federal Reserve — “our partners in the government,” as [AIG CEO Edward] Liddy put it with a shockingly casual matter-of-factness after the most recent bailout.
The mistake most people make in looking at the financial crisis is thinking of it in terms of money, a habit that might lead you to look at the unfolding mess as a huge bonus-killing downer for the Wall Street class. But if you look at it in purely Machiavellian terms, what you see is a colossal power grab that threatens to turn the federal government into a kind of giant Enron — a huge, impenetrable black box filled with self-dealing insiders whose scheme is the securing of individual profits at the expense of an ocean of unwitting involuntary shareholders, previously known as taxpayers.
In other words, what got us here is a feature, not a bug. The rot won’t be quelled by purging the barrel of rotten fruit; the barrel itself is befouled and corrupted. We can’t afford to allow the same greedy, sociopathic assholes who helped erect the current neoliberal economic structure to build a new framework that will inevitably lead to another future collapse.
After too many years of evading responsibility, unregulated capitalism must be held accountable, once and for all.
Next–Chapter 6: Saved by a War Thatcherism and its Useful Enemies