To address a major point of the introduction, I don't believe that Friedman was the inventor of "shock therapy" in the sense of economics and politics, rather, I propose that he was simply the first man to pinpoint it as a successful method of profit. There are many instances throughout history (slave trade, the Chicago Fire) in which a select few were able to profit off of the afflicted- obviously slave traders in the 1800s and pillagers in the Chicago Fire of 1871. Of course, there is a marked boom in these profitable disasters (as one might call them) following Friedman's definition. Now comes the question of whether or not it was a mistake to assign meaning to the phenomena. Of course there is Klein's answer which states that following in Friedman's wake were the many reforms of economic and political entities which lead to the development of techniques to capitalize on disasters; in short, yes. But the other answer considers root cause analysis:
- Determine what happened.
- Determine why it happened.
- Figure out what to do to reduce the likelihood that it will happen again.
I appreciate your view on Klein's interpretations. Having not had any experience with either Klein or Friedman, I wet into this reading with an unbiased mind of sorts and was easily won over by Klein's horrific descriptions of the ways the displaced or affected people were being treated by these so called "Shock therapy" installments. However, after reading the negative article about Klein's work, I do have to reconsider any bias I may have towards Friedman's point of view.
ReplyDeleteI don't want to sound like a fanboy of Friedman's, but it is impossible to deny the incredible impact which he has had in globalization, which is of course the first step towards modernization. Arguments could be made regarding the pros and cons of such occurrences, but I personally find it hard to sit back while billions of human beings are oppressed around the world when something could potentially be done. Modernization opens up more doors than any other initiative towards this end in my opinion.
DeleteEither way, you should really familiarize yourself with Friedman. I imagine it's quite important in the modern world to have a working knowledge of Friedman's ideology (because that's what everything runs on)