Why Capitalism Needs Terror: An Interview with Naomi Klein

by Naomi Klein and Kenneth Whyte; Maclean's; September 08, 2007

There's a school of thought that free markets and democracy go hand in hand and together they make people free and prosperous. You're arguing that free-market ideology has triumphed around the world not because people have embraced the market but because the ideology has been imposed on them, often in moments of distress. Furthermore, these moments of distress have sometimes been created by governments as a pretext to bring in free-market policies. To top it all off, the policies haven't really worked. They've just enriched the people who introduced them. How's that for a summary?

That's pretty good. I would quibble with a few things. I don't know that there are examples of the governments themselves creating the crises.

Okay. Is violence inherent in capitalism or is that something that's recently mutated out of capitalism as it's been practised over the last several hundred years?

I think you can make that argument. But the book is really looking at a war between different kinds of capitalism. It's about a battle of ideas between Keynesianism -- a mixed economy, which is what we have in this country -- and what I describe as a fundamentalist strain of capitalism which has an objection to the very idea of mixed economy. When these sort of fundamentalist capitalists get their way what is constructed is not capitalism at all, it's actually corporatism, China being one example ...

Give me the attributes of fundamentalist capitalism.

They're almost the attributes of every fundamentalist: the desire for purity, a belief in a perfect balance, and every time there are problems identified they are attributed to perversions, distortions within what would otherwise be a perfect system. I think you see this from religious fundamentalists and from Marxist fundamentalists, and I would argue that [Austrian economist Friedrich] Hayek and [University of Chicago economist Milton] Friedman shared this dream of the pure system. These are brilliant mathematicians, in many cases, so it looks perfect in their modelling. But I think anyone who falls in love with a system is dangerous, because the world doesn't comply and then you get angry at the world...[Open in new window]