Large-scale shocks are frequently harnessed to ram through despised pro-corporate and anti-democratic policies that would never have been feasible in normal times. It’s a phenomenon I have previously called the “Shock Doctrine,” and we have seen it happen again and again over the decades, from Chile in the aftermath of Augusto Pinochet’s coup to New Orleans after Hurricane Katrina.
And we have seen it happen recently, well before Trump, in U.S. cities including Detroit and Flint, where looming municipal bankruptcy became the pretext for dissolving local democracy and appointing “emergency managers” who waged war on public services and public education. It is unfolding right now in Puerto Rico, where the ongoing debt crisis has been used to install the unaccountable “Financial Oversight and Management Board,” an enforcement mechanism for harsh austerity measures, including cuts to pensions and waves of school closures. This tactic is being deployed in Brazil, where the highly questionable impeachment of President Dilma Rousseff in 2016 was followed by the installation of an unelected, zealously pro-business regime that has frozen public spending for the next 20 years, imposed punishing austerity, and begun selling off airports, power stations, and other public assets in a frenzy of privatization.
As Milton Friedman wrote long ago, “Only a crisis — actual or perceived — produces real change. When that 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.” Survivalists stockpile canned goods and water in preparation for major disasters; these guys stockpile spectacularly anti-democratic ideas.
Now, as many have observed, the pattern is repeating under Trump. On the campaign trail, he did not tell his adoring crowds that he would cut funds for meals-on-wheels, or admit that he was going to try to take health insurance away from millions of Americans, or that he planned to grant every item on Goldman Sachs’ wish list. He said the very opposite.