Friedman Doctrine Quotes

This points to a nagging and important question about free-market ideologues: Are they ‘true believers’, driven by ideology and faith that free markets will cure underdevelopment, as is often asserted, or do the ideas and theories frequently serve as an elaborate rationale to allow people to act on unfettered greed while still invoking an altruistic motive?

It was in 1982 that Milton Friedman wrote the highly influential passage that best summarizes the shock doctrine. " Only a crisis-actual or percieved-produces real change. When the crisis occurs, the actions that are taken depend on the ideas that are lying around. That, I believe, is our basic function: to develop alternatives to existing policies, to keep them alive and available until the politically impossible becomes politically inevitable.

Thomas Friedman, in his best-selling book The Lexus and the Olive Tree, declared that what happened in Asia wasn’t a crisis at all. “I believe globalization did us all a favor by melting down the economies of Thailand, Korea, Malaysia, Indonesia, Mexico, Russia, and Brazil in the 1990s, because it laid bare a lot of rotten practices and institutions,

Social responsibility is a fundamentally subversive doctrine" in a free society, and have said that in such a society, "there is one and only one social responsibility of business–to use it resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud.

Much of U.S. foreign policy...is an exercise in projection, in which a tiny self-interested elite conflates its needs and desires with those of the entire world.

In much of the Southern Hemisphere, neo liberalism is frequently spoken of as "the second colonial pillage": in the first pillage, the riches were seized from the land, and in the second they were stripped from the state.

A network of right-wing think tanks seized on Friedman’s proposal and descended on the city after the storm. The administration of George W. Bush backed up their plans with tens of millions of dollars to convert New Orleans schools into “charter schools,” publicly funded institutions run by private entities according to their own rules. Charter schools are deeply polarizing in the United States, and nowhere more than in New Orleans, where they are seen by many African-American parents as a way of reversing the gains of the civil rights movement, which guaranteed all children the same standard of education. For Milton Friedman, however, the entire concept of a state-run school system reeked of socialism.

- En fait, la doctrine du ciel n'est pas figée. C'est vrai qu'ils ont eu des penchants égalitaristes. Mais tout a changé avec l'arrivée de Friedrich Hayek, Milton Friedman, Ronald Reagan, et quantité d'apôtres de la déréglementation qui ont commencé à faire leur propagande ici même. - Vous voulez dire qu'aujourd'hui... - Je veux dire qu'aujourd'hui, sous leur influence, le ciel est devenu carrément néo-libéral.

There is an excellent short book (126 pages) by Faustino Ballvè, Essentials of Economics (Irvington-on-Hudson, N.Y.: Foundation for Economic Education), which briefly summarizes principles and policies. A book that does that at somewhat greater length (327 pages) is Understanding the Dollar Crisis by Percy L. Greaves (Belmont, Mass.: Western Islands, 1973). Bettina Bien Greaves has assembled two volumes of readings on Free Market Economics (Foundation for Economic Education). The reader who aims at a thorough understanding, and feels prepared for it, should next read Human Action by Ludwig von Mises (Chicago: Contemporary Books, 1949, 1966, 907 pages). This book extended the logical unity and precision of economics beyond that of any previous work. A two-volume work written thirteen years after Human Action by a student of Mises is Murray N. Rothbard’s Man, Economy, and State (Mission, Kan.: Sheed, Andrews and McMeel, 1962, 987 pages). This contains much original and penetrating material; its exposition is admirably lucid; and its arrangement makes it in some respects more suitable for textbook use than Mises’ great work. Short books that discuss special economic subjects in a simple way are Planning for Freedom by Ludwig von Mises (South Holland, 111.: Libertarian Press, 1952), and Capitalism and Freedom by Milton Friedman (Chicago: University of Chicago Press, 1962). There is an excellent pamphlet by Murray N. Rothbard, What Has Government Done to Our Money? (Santa Ana, Calif.: Rampart College, 1964, 1974, 62 pages). On the urgent subject of inflation, a book by the present author has recently been published, The Inflation Crisis, and How to Resolve It (New Rochelle, N.Y.: Arlington House, 1978). Among recent works which discuss current ideologies and developments from a point of view similar to that of this volume are the present author’s The Failure of the “New Economics”: An Analysis of the Keynesian Fallacies (Arlington House, 1959); F. A. Hayek, The Road to Serfdom (1945) and the same author’s monumental Constitution of Liberty (Chicago: University of Chicago Press, 1960). Ludwig von Mises’ Socialism: An Economic and Sociological Analysis (London: Jonathan Cape, 1936, 1969) is the most thorough and devastating critique of collectivistic doctrines ever written. The reader should not overlook, of course, Frederic Bastiat’s Economic Sophisms (ca. 1844), and particularly his essay on “What Is Seen and What Is Not Seen.” Those who are interested in working through the economic classics might find it most profitable to do this in the reverse of their historical order. Presented in this order, the chief works to be consulted, with the dates of their first editions, are: Philip Wicksteed, The Common Sense of Political Economy, 1911; John Bates Clark, The Distribution of Wealth, 1899; Eugen von Böhm-Bawerk, The Positive Theory of Capital, 1888; Karl Menger, Principles of Economics, 1871; W. Stanley Jevons, The Theory of Political Economy, 1871; John Stuart Mill, Principles of Political Economy, 1848; David Ricardo, Principles of Political Economy and Taxation, 1817; and Adam Smith, The Wealth of Nations, 1776.

Neoliberal ideology has radically altered our working lives, leaving us isolated and exposed. The ‘freedom and independence’ of the gig economy it celebrates, in which regular jobs are replaced by an illusion of self-employment, often translates into no job security, no unions, no health benefits, no overtime compensation, no safety net and no sense of community. In 1987, Margaret Thatcher said the following in a magazine interview: I think we have gone through a period when too many children and people have been given to understand ‘I have a problem, it is the Government’s job to cope with it!’ or ‘I have a problem, I will go and get a grant to cope with it!’, ‘I am homeless, the Government must house me!’ And so they are casting their problems on society, and who is society? There is no such thing! There are individual men and women and there are families, and no government can do anything except through people and people look to themselves first.8 As always, Thatcher was faithfully repeating the snake-oil remedies of neoliberalism. Precious few of the ideas attributed to her were her own. They were formulated by men like Hayek and Friedman, then spun by the think tanks and academic departments of the Neoliberal International. In this short quote, we see three of the ideology’s core tenets distilled: First, everyone is responsible for their own destiny, and if you fall through the cracks, the fault is yours and yours alone. Second, the state has no responsibility for those in economic distress, even those without a home. Third, there is no legitimate form of social organization beyond the individual and the family. There is genuine belief here. There is a long philosophical tradition, dating back to Thomas Hobbes,9 which sees humankind as engaged in a war of ‘every man against every man’. Hayek believed that this frantic competition delivered social benefits, generating the wealth which would eventually enrich us all. But there is also political calculation. Together we are powerful, alone we are powerless. As individual consumers, we can do almost nothing to change social or environmental outcomes. But as citizens, combining effectively with others to form political movements, there is almost nothing we cannot do. Those who govern on behalf of the rich have an incentive to persuade us we are alone in our struggle for survival, and that any attempts to solve our problems collectively – through trade unions, protest movements or even the mutual obligations of society – are illegitimate or even immoral. The strategy of political leaders such as Thatcher

One solution, instituted by Winston Churchill when he was at the Treasury, was the ‘Ten Year Rule’, the doctrine that defence budgets could be written on the assumption that there would be no war for ten years. On that basis spending on expendables such as ammunition and even quartz transducers for sonars (Asdics) could be eliminated (major capital items such as ships could still be bought).

En fait, la doctrine du ciel n'est pas figée. C'est vrai qu'ils ont eu des penchants égalitaristes. Mais tout a changé avec l'arrivée des Friedrich Hayek, Milton Friedman, Ronald Reagan, et quantité d'apôtres de la déréglementation qui ont commencé à faire leur propagande ici-même. - Vous voulez dire qu'aujourd'hui... - Je veux dire qu'aujourd'hui, sous leur influence, le ciel est devenu carrément néo-libéral.

The view has been gaining widespread acceptance that corporate officials and labor leaders have a “social responsibility” that goes beyond serving the interest of their stockholders or their members. This view shows a fundamental misconception of the character and nature of a free economy. In such an economy, there is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition, without deception or fraud….It is the responsibility of the rest of us to establish a framework of law such that an individual in pursuing his own interest is, to quote Adam Smith again, “led by an invisible hand to promote an end which was no part of his intention. Nor is it always the worse for the society that it was no part of it. By pursuing his own interest, he frequently promotes that of the society more effectually than when he really intends to promote it. I have never known much good done by those who affected to trade for the public good.” Few trends could so thoroughly undermine the very foundations of our free society as the acceptance by corporate officials of a social responsibility other than to make as much money for their stockholders as possible. This is a fundamentally subversive doctrine. If businessmen do have a social responsibility other than making maximum profits for stockholders, how are they to know what it is? Can self-selected private individuals decide what the social interest is? Can they decide how great a burden they are justified in placing on themselves or their stockholders to serve that social interest? Is it tolerable that these public functions of taxation, expenditure, and control be exercised by the people who happen at the moment to be in charge of particular enterprises, chosen for those posts by strictly private groups? If businessmen are civil servants rather than the employees of their stockholders then in a democracy they will, sooner or later, be chosen by the public techniques of election and appointment.

A large part of the appeal of Chicago School economics was that, at a time when radical-left ideas about workers' power were gaining ground around the world, it provided a way to defend the interests of owners that was just as readical and was infused with its own calims to idealism. To hear Friedman tell it, his ideas were not about defending the right of factory owners to pay low wages but, rather, all about a quest for the purest possible form of "participatory democracy" because in the free market, "each man can vote, as it were, for the color of tie he wants." Where leftists promised freedom for workers from bosses, citizens from dictators, countries from colonialism, Friedman promised "individual freedom," a project that elevated atomized citizens about any collective enterprise and liberated them to express their absolute free will through their consumer choices.

Not so long ago, disasters were periods of social levelling, rare moments when atomized communities put divisions aside and pulled together. Increasingly, however disasters are the opposite: they provide windows into a cruel and ruthlessly divided future in which money and race buy survival.

It is precisely because the dream of economic equality is so popular, and so difficult to defeat in a fair fight, that the shock doctrine was embraced in the first place.

That is the untold story of what the IMF calls "stabilization programs," as if countries were ships being tossed around on the market's high seas. They do, eventually, stabilize, but that new equilibrium is achieved by throwing millions of people overboard: public sector workers, small-business owners, subsistence farmers, trade unionists. The ugly secret of "stabilization" is the vast majority never climb back aboard. They end up in slums, now home to 1 billion people; they end up in brothels or cargo ship containers. They are the disinherited, those described by the German poet Rainer Maria Rilke as "ones to whom neither the past nor the future belongs.

Corruption has been as much a fixture on these contemporary frontiers as it was during the colonial gold rushes. Since the most significant privatization deals are always signed amid the tumult of an economic or political crisis, clear laws and effective regulations are never in place - the atmosphere is chaotic, the prices are flexible and so are the politicians. What we have been living for three decades is frontier capitalism, with the frontier constantly shifting locations from crisis to crisis, moving on as soon as the law catches up.

When information about who is or is not a security threat is a product to be sold as readily as information about who buys Harry Potter books on Amazon or who has taken a Caribbean cruise and might enjoy one in Alaska, it changes the values of a culture. Not only does it create an incentive to spy, torture and generate false information but it creates a powerful impetus to perpetuate the fear and sense of peril that created the industry in the first place.

Starting in the 1970s, the Friedman Doctrine and its extrapolations freed and encouraged businesspeople and the rich to go ahead and conform to the left-wing caricatures of them, to be rapacious and amoral without shame.

Much has been made of the youth and inexperience of the US political appointees in the CPA - the fact that a handful of twentysomething Republicans were given key roles overseeing Iraq's $13 billion budget. While there is no question that the members of the so-called brat pack were alarmingly young, that was not their greatest liability. These were not just any political cronies; they were frontline warriors from America's counterrevolution against all relics of Keynesianism, many of them linked to the Heritage Foundation, ground zero of Friedmanism since it was launched in 1973. So whether they were twenty-two-year-old Dick Cheney interns of sixtysomething university presidents, they shared a cultural antipathy to government and governing that, while invaluable for the dismantling of social security and the public education system back home, had little use when the job was actually to build up public institutions that had been destroyed. In fact, many seemed to believe that the process was unnecessary. James Haveman, in charge of rebuilding Iraq's health care system, was so ideologically opposed to free, public health care that, in a country where 70% of child deaths are caused by treatable illnesses such as diarrhea, and incubators are held together with duct tape, he decided that an overarching priority was to privatize the drug distribution system.

Friedman’s masterstroke was implanting the idea that ‘business freedom is personal freedom’ in the minds of Americans.