Shock Doctrine Series

The Shock Doctrine by Naomi Klein, 2007, Edited Excerpts

 

Sept 11, 1973 Pinochet overthrow.

 

Pinochet had a knack for authoritarian rule, but he knew next to nothing about economics. With the economy in a tailspin, Pinochet had a full-fledged crisis on his hands. It was the Chicago Boys’ vision of a total country overhaul that appealed to his newly unleashed ambition, and he named several Chicago grads as senior economic advisors, including Sergio de Castro, the movement’s de facto leader and the main author of “The Brick.” Sergio de Castro, Pinochet’s Chicago Boy economics minister who oversaw the implementation of shock treatment, said he could never have done it without Pinochet’s iron fist backing him up. He also observed that an “authoritarian government” is best to safeguarding economic freedom because of its “impersonal” use of power.

 

Their five-hundred-page bible – a detailed economic program that would guide the junta from its earliest days – came to be known in Chile as “The Brick.” According to a later U.S. Senate Committee, “CIA collaborators were involved in preparing an initial overall economic plan which has served as the basis for the Junta’s most important economic decisions.” Eight of the ten principal authors of “The Brick” had studied economics at the University of Chicago. Milton Friedman was the intellectual architect and unofficial advisor for the team of economists now running the Chilean economy and shared responsibility for Pinochet’s crimes.

 

To make sure that the terror extended beyond the capital city, Pinochet sent his most ruthless commander, General Stark, on a helicopter mission to the northern provinces to visit a string of prisons where “subversives” were being held. At each city and town, Stark and his roving death squad singled out the highest-profile prisoners, as many as twenty-six at a time, who were subsequently executed. The trail of blood left behind over those four days came to be known as the Caravan of Death. In short order, the entire country had gotten the message: resistance is deadly.

 

In 1975, Milton Friedman flew to Santiago at the invitation of a major bank to help save the experiment. Friedman was greeted by the junta-controlled press as something of a rock star, the guru of the new order. Each of his pronouncements made headlines, his academic lectures were broadcast on national television and he had the most important audience of all; a private meeting with General Pinochet.