Disaster Capitalism in Action

(I’m outsourcing this post to Fubar, my co-blogger at Needlenose, who wrote this last night. Readers may recall Naomi Klein’s visit to the FDL Book Salon. — S.)

Naomi Klein’s seminal work The Shock Doctrine introduced the concept of Disaster Capitalism. The book is a must-read for anyone interested in a birds-eye view on why the world seems so much more at turmoil with Bush and Republicans at the helm.

The basic thesis is that natural and artificial disasters are now being used as triggers to make large social and economic changes that would otherwise not have been palatable to the general public. Civil liberties, defense expenditures, and union busting are some of the examples she offers post-9/11 and Katrina.

The housing meltdown and problems in certain economics sectors are now being used by far-ranging groups to radically shift the pricing model for a number of commodities (like copper or grains). The result, according to Reuters:

Already feeling the pinch from soaring wheat and flour prices, U.S. bakers are now beginning to experience some supply shortages.

Rye flour stocks have been depleted in the United States, and by June or July there will be no more U.S. rye flour to purchase, said Lee Sanders, senior vice president for government relations and public affairs at the American Bakers Association.

… She attributed the shortage to high demand for rye flour, which is used to make rye bread, and less acreage devoted to rye grain than in the past.

Grain prices have been soaring worldwide while stocks have been dwindling, causing riots in some poor countries.

The sudden rise in prices is being blamed on commodity speculators. The solution, you would think, is to stop rampant speculation. But unless you subscribe to the Disaster Capitalism credo, you may be in for a surprise:

The American Bakers Association has been lobbying Congress to open up "non-environmentally sensitive" land in the Conservation Reserve Program for production to help increase supply. The group is also advocating elimination of the ethanol import tariff and temporarily waiving ethanol production limits.

See how that works? Instead of addressing the real problem (rampant speculation), the looming disaster is going to require waiving pesky environmental regulations.

The same is true in the oil market. Gas companies raise prices and report record profits. The proposed solution? Open up ANWR for drilling:

Hoping to capitalize on the concerns of ordinary consumers at the gas pump, Sens. Lisa Murkowski and Ted Stevens introduced legislation Thursday that would allow drilling in the Arctic National Wildlife Refuge if the price of oil hits $125 a barrel.

The senators hope that high oil prices, hovering at $110 a barrel Thursday morning, will change the minds of fellow senators who, until now, have been opposed to opening the wildlife refuge to drilling. The two Alaska Republicans are hoping that the next clamor for drilling in ANWR will come from consumers who see the price of a gallon of gas creeping closer to $4 a gallon.

The next time you hear any bad news, stop and think about who could possibly benefit from that disaster, and keep an eye out for people pushing crazy ideas now that they’ve got you shocked into submission.

Related posts:

1. Late Night: Healthcare Disaster Looms; Action Needed on Modest Policy Proposal
2. The Normal Violence of Capitalism
3. FDL Action: Public Option Whip Count — Day 5
4. Capitalism, a shrug story.
5. Obama’s Speech: Trapped In the Gap Between Action and Rhetoric