Coronavirus Is the Perfect Disaster for ‘Disaster Capitalism’

 

Naomi Klein explains how govern­ments and the global elite will exploit a pande­mic.

 

The coro­na­vi­rus is offi­ci­ally a global pande­mic that has so far infec­ted 10 times more people than SARS did. Scho­ols, univer­sity systems, museums, and thea­ters across the U.S. are shut­ting down, and soon, entire cities may be too. Experts warn that some people who suspect they may be sick with the virus, also known as COVID-19, are going about their daily routi­nes, either because their jobs do not provide paid time off because of syste­mic failu­res in our priva­ti­zed health care system.

 

 

Most of us aren’t exac­tly sure what to do or who to listen to. Presi­dent Donald Trump has contra­dic­ted recom­men­da­ti­ons from the Centers for Dise­ase Control and Preven­tion, and these mixed messa­ges have narro­wed our window of time to miti­gate harm from the highly conta­gi­ous virus.

These are the perfect condi­ti­ons for govern­ments and the global elite to imple­ment poli­ti­cal agen­das that would other­wise be met with great oppo­si­tion if we weren’t all so diso­ri­en­ted. This chain of events isn’t unique to the crisis spar­ked by the coro­na­vi­rus; it’s the blue­print poli­ti­ci­ans and govern­ments have been follo­wing for deca­des known as the “shock doctrine, ” a term coined by acti­vist and author Naomi Klein in a 2007 book of the same name.

 

History is a chro­ni­cle of “shocks”—the shocks of wars, natu­ral disas­ters, and econo­mic crises—and their after­math. This after­math is charac­te­ri­zed by “disas­ter capi­ta­lism,” calcu­la­ted, free-market “solu­ti­ons” to crises that exploit and exacer­bate exis­ting inequa­li­ties.

 

Klein says we’re alre­ady seeing disas­ter capi­ta­lism play out on the nati­o­nal stage: In response to the coro­na­vi­rus, Trump has propo­sed a $700 billion stimu­lus package that would include cuts to payroll taxes (which would devas­tate Social Secu­rity) and provide assis­tance to indus­tries that will lose busi­ness as a result of the pande­mic.

 

“They’re not doing this because they think it’s the most effec­tive way to alle­vi­ate suffe­ring during a pande­mic—t­hey have these ideas lying around that they now see an oppor­tu­nity to imple­ment, ” Klein said.

 

 

VICE spoke to Klein about how the “shock” of coro­na­vi­rus is giving way to the chain of events she outli­ned more than a decade ago in The Shock Doctrine.

 

This inter­view has been lightly edited for length and clarity.

 

Let’s start with the basics. What is disas­ter capi­ta­lism? What is its rela­ti­ons­hip to the “shock doctrine”?

 

The way I define disas­ter capi­ta­lism is really straight­for­ward: It descri­bes the way private indus­tries spring up to directly profit from large-scale crises. Disas­ter profi­te­e­ring and war profi­te­e­ring isn’t a new concept, but it really deepe­ned under the Bush admi­nis­tra­tion after 9/11, when the admi­nis­tra­tion decla­red this sort of never-ending secu­rity crisis, and simul­ta­ne­ously priva­ti­zed it and outsour­ced it—t­his inclu­ded the domes­tic, priva­ti­zed secu­rity state, as well as the [priva­ti­zed] inva­sion and occu­pa­tion of Iraq and Afgha­nis­tan.

 

The “shock doctrine” is the poli­ti­cal stra­tegy of using large-scale crises to push through poli­cies that syste­ma­ti­cally deepen inequa­lity, enrich elites, and under­cut everyone else. In moments of crisis, people tend to focus on the daily emer­gen­cies of survi­ving that crisis, whate­ver it is, and tend to put too much trust in those in power. We take our eyes off the ball a little bit in moments of crisis.

 

Where does that poli­ti­cal stra­tegy come from? How do you trace its history in Ameri­can poli­tics?

 

The shock-doctrine stra­tegy was as a response to the origi­nal New Deal under FDR. [Econo­mist] Milton Fried­man beli­e­ves everyt­hing went wrong in America under the New Deal: As a response to the Great Depres­sion and the Dust Bowl, a much more acti­vist govern­ment emer­ged in the country, which made it its mission to directly solve the econo­mic crisis of the day by crea­ting govern­ment employ­ment and offe­ring direct relief.

 

 

If you’re a hard-core free-market econo­mist, you unders­tand that when markets fail it lends itself to progres­sive change much more orga­ni­cally than it does the kind of dere­gu­la­tory poli­cies that favor large corpo­ra­ti­ons. So the shock doctrine was deve­lo­ped as a way to prevent crises from giving way to orga­nic moments where progres­sive poli­cies emerge. Poli­ti­cal and econo­mic elites unders­tand that moments of crisis is their chance to push through their wish list of unpo­pu­lar poli­cies that further pola­rize wealth in this country and around the world.

 

Right now we have multi­ple crises happe­ning: a pande­mic, a lack of infras­truc­ture to manage it, and the cras­hing stock market. Can you outline how each of these compo­nents fit into the schema you outline in The Shock Doctrine ?

 

The shock really is the virus itself. And it has been mana­ged in a way that is maxi­mi­zing confu­sion and mini­mi­zing protec­tion. I don’t think that’s a cons­pi­racy, that’s just the way the U.S. govern­ment and Trump have utterly misma­na­ged this crisis. Trump has so far trea­ted this not as a public health crisis but as a crisis of percep­tion, and a poten­tial problem for his reelec­tion.

The shock doctrine was deve­lo­ped as a way to prevent crises from giving way to orga­nic moments where progres­sive poli­cies emerge.

 

It’s the worst-case scena­rio, espe­ci­ally combi­ned with the fact that the U.S. doesn’t have a nati­o­nal health care program and its protec­ti­ons for workers are abys­mal. This combi­na­tion of forces has deli­ve­red a maxi­mum shock. It’s going to be exploi­ted to bail out indus­tries that are at the heart of most extreme crises that we face, like the climate crisis: the airline industry, the gas and oil industry, the cruise industry—they want to prop all of this up.

 

 

How have we seen this play out before?

 

In The Shock Doctrine I talk about how this happe­ned after Hurri­cane Katrina. Washing­ton think tanks like the Heri­tage Foun­da­tion met and came up with a wish list of “pro-free market” solu­ti­ons to Katrina. We can be sure that exac­tly the same kinds of meetings will happen now— in fact, the person who chai­red the Katrina group was Mike Pence. In 2008, you saw this play out in the origi­nal [bank] bail out, where coun­tries wrote these blank checks to banks, which even­tu­ally added up to many trilli­ons of dollars. But the real cost of that came in the form of econo­mic auste­rity [later cuts to social servi­ces]. So it’s not just about what’s going on right now, but how they’re going to pay for it down the road when the bill for all of this comes due.

 

Is there anyt­hing people can do to miti­gate the harm of disas­ter capi­ta­lism we’re alre­ady seeing in the response to the coro­na­vi­rus? Are we in a better or worse posi­tion than we were during Hurri­cane Katrina or the last global reces­sion?

 

When we’re tested by crisis we either regress and fall apart, or we grow up, and find reser­ves of strengths and compas­sion we didn’t know we were capa­ble of. This will be one of those tests. The reason I have some hope that we might choose to evolve is that—un­like in 2008—we have such an actual poli­ti­cal alter­na­tive that is propo­sing a diffe­rent kind of response to the crisis that gets at the root causes behind our vulne­ra­bi­lity, and a larger poli­ti­cal move­ment that supports it.

 

 

This is what all of the work around the Green New Deal has been about: prepa­ring for a moment like this. We just can’t lose our courage; we have to fight harder than ever before for univer­sal health care, univer­sal child care, paid sick leave—it’s all inti­ma­tely connec­ted.

 

If our govern­ments and the global elite are going to exploit this crisis for their own ends, what can people do to take care of each other?

 

”'I’ll take care of me and my own, we can get the best insu­rance there is, and if you don’t have good insu­rance it’s probably your fault, that’s not my problem”: This is what this sort of winners-take-all economy does to our brains. What a moment of crisis like this unveils is our porous­ness to one anot­her. We’re seeing in real time that we are so much more inter­con­nec­ted to one anot­her than our quite brutal econo­mic system would have us beli­eve.

 

We might think we’ll be safe if we have good health care, but if the person making our food, or deli­ve­ring our food, or packing our boxes doesn’t have health care and can’t afford to get tested—­let alone stay home from work because they don’t have paid sick leave—we won’t be safe. If we don’t take care of each other, none of us is cared for. We are enmes­hed.

We’re seeing in real time that we are so much more inter­con­nec­ted to one anot­her than our quite brutal econo­mic system would have us beli­eve.

 

Diffe­rent ways of orga­ni­zing soci­ety light up diffe­rent parts of oursel­ves. If you’re in a system you know isn’t taking care of people and isn’t distri­bu­ting resour­ces in an equi­ta­ble way, then the hoar­ding part of you is going to be lit up. So be aware of that and think about how, instead of hoar­ding and thin­king about how you can take care of your­self and your family, you can pivot to sharing with your neigh­bors and chec­king in on the people who are most vulne­ra­ble.

 

Marie Solis