Laissez-faire - Genesis, decline and revenge of an ideology (2015) – Documentary

0:13 [Music]

0:59 K [Music] [ Laughter] in the last twenty years of the twentieth century the economic elites of Western societies

1:54 [Laughter] of the free world market their power exploded while states, democracies and citizens were slowly deprived of their sovereignty [Music] their system, however, has a flaw: it devours everything it can and in the end it ends up devouring itself too. After the financial crash of 2007 that hit the world, the responsible investment banks are declared too big to

2:41 fail. But the enormous holes they caused are covered everywhere with state money both in the United States and in Europe. The big banks now close to bankruptcy are all saved in the United States. Some of the big managers were called to answer but in the dock. This time there were not only men

3:30 working was you the Authority to prent irresponsible Lending practices that to the age Crisis. You were advised to do so by many others and now our Whole Economy is paying a price. You feel that your idea pushes you to make decisions that you wish you had not made. Remember that what you did was not ... an idea is is a conceptual framework with the way people deal with reality everyone has one. You have to ex youy the is it accurate or and I'm saying To You is Yes I found a flw I don't know how significant or permanent it is but I've been very distressed by that fact.

4:16 But if I may May I just Finish answer Question prev You found a flw ined cryptic structure That despite the admission of guilt the defendant is back in freedom after all ideas cannot be imprisoned ism

5:01 is practically is is the political theory based on the affirmation that arises from the affirmation of the Industrial Revolution therefore the affirmation of the capitalist society that finds a system to describe itself, that is, the new capitalist bourgeois class finds a system to describe itself, its dynamics and obviously does so in positive terms. That is, in terms of legitimizing the social structure in which they find themselves prevailing and try to give it a rational foundation. It is a thesis that can be traced back to the infamous theorem of the invisible hand of Adam Smith at the end of the

5:47 eighteenth century and was then subsequently reworked in many ways, the basic idea of ​​neoliberalism is that in fact the selfish individual action of each individual of each company allows, through a sort of heterogenesis of ends, to then lead to collective well-being. In a certain sense, individual selfishness actually leads to collective well-being. Liberalism believes, along with Darwinism, precisely this type of philosophy that in the end the best and the strongest must survive and obviously confuses the strongest with the best in a complex and class-structured society. It is obvious that the strongest are the richest, the best

6:33 equipped and consequently they want to define themselves as better and perpetuate themselves. This is the weak point of liberalism which, in fact, strives to support social mobility, to reward merit and so on. It is a thesis that has actually served the interests of all those who can then exercise power in their action on the market. Evidently, they feel protected by this vision of things because they can, let's say, operate freely. It is no coincidence that the doctrine also called the doctrine of the ass should actually be reinterpreted as the doctrine of nullas,

7:19 that is, Let us do it. only a major obstacle to liberalism is democracy. In 1975, an international institution called the Trilateral Commission published a volume written by three different authors entitled The Crisis of Democracy. The introduction to the Italian edition is signed by Giovanni Agnelli, who opens by describing what the Trilateral Commission is, of which he was a member. The Trilateral Commission is a group of private citizens who meet to study and propose balanced solutions to burning international issues of common

8:08 interest. The three authors, each for their own area of ​​belonging, describe in detail what are the obstacles to making neoliberalism coexist with democracy. The conclusions of the American Samuel Huntington were these. Some of the problems of governing the United States today arise from an excess of democracy. What democracy needs instead is a greater degree of moderation. Democracy is nothing more than one of the sources of authority. In many situations, whoever is better, more experienced, or more senior in the hierarchy can have

8:53 precedence over the Democratic process. It undoubtedly served. That is, it gave a sci no to industrial activity to microeconomic activity on the macroeconomic level instead it is more purely political. It is a theorization of how and why they find themselves to have a to hold Here to hold the principles of social justice social justice is that which they manage to impose with their economic power Here however while subjects endowed with power evidently find advantages from this pervasive dominant ideology and in fact from the point of view Then of the overall efficiency of the system We are faced with a series

9:39 of failures the liberalism of the 30s enters into crisis with the crisis of 29 in a blatant manner Clear with colossal increases in unemployment and without any capacity of the system to spontaneously emerge from that crisis neoliberalism today Enters into crisis because the crisis of 2008 the so-called great recession as defined by the International Monetary Fund does not seem to be able to resolve itself thanks to market forces and once again we are faced with How to say a series of testimonies of evidence of the fact that evidently this doctrine which is often considered scientific is considered irrefutable and to

10:24 which fine minds are dedicated in order to be able to defend it let's say support this doctrine in reality finds no confirmation In the facts the symbolic date of the The birth of modern economics was in 1776 when Adam Smith published his most important work, an investigation into the nature and causes of the wealth of nations. Thanks to this work, Smith is considered the founding father, but in reality it was only used as a pretext. He never wrote that the market was sufficient to satisfy all the needs of the individual, so much so that he considered

11:09 free and free state education essential. Furthermore, Smith's state was that composed of the oligarchies of the time, from the aristocracy, he certainly did not refer to a democratic state. The same year of Smith's publication, the American Revolution ended, and 13 years later, the French Revolution broke out in the heart of Europe. The liberal principles expressed by the French-American constitution and Smith's evocative ideas, driven by the Industrial Revolution, gave birth to the modern capitalism we know today. The power of the bourgeoisie exploded, but at the same time, capitalism produced a new class of oppressed people.

11:56 In the 19th century, the exploitation of labor was extremely high and the living conditions of workers were at the limits of survival. This is why in the mid- 19th century a new intellectual movement aimed to subvert the rules by studying history. of societies and their development in the recent capitalist era. Karl Marx, until then a philosopher, elaborated a profound analysis that changed the vision of the economy forever. He prophesied that workers, if conscious and organized, could overcome capitalism, a system that, as he theorized, produces exploitation and is subject to cyclical crises, condemned to a single fate: to implode on

12:45 itself. While Marx's ideas were inflaming masses of workers throughout Europe, three economists, taking up the principle of Smith's invisible hand, invented a new theory called general equilibrium and states that the entire market, if not subjected to interference by the States, regulates itself, generating well-being for the entire community. This new economic current will be elaborated later by other economists and will take the name of neoclassicism. The basis of modern neoliberalism is the arrogance of and above all the great

13:31 industrial bankers understand that the principles of neoclassical economics serve their interests perfectly. The governments of the beginning of the century were little more than committees for their own business and the choices of economic policy throughout the West therefore moved in the direction of Let us [Music] make capitalism so fast that trade becomes global as well as the interests of the Elite as well as the wars more than 10 million workers become slaves die in the trenches in Russia The masses of workers and

14:18 peasants led by the enin Dan give birth to the October revolution the largest state in the world abandoned capitalism on the ideas of Marx Lenin built a new type of state a new social model without private property without market economy and free enterprise that would have guaranteed that labor was no longer exploited and that the state was no longer a means in the hands of the Elite only Marxism Leninism will soon become Stalinism and the Old Elites will be replaced by new ones but in fact Russia withdraws from the

15:05 game in the West instead the games remain open capitalism runs fast tightly harnessed to the reins of liberalism [Music] social imbalances and poverty increase more and more many are forced to abandon their land those who remain instead will be forced to obey new [Music] ideologies But if liberalism in Europe produces dictatorships and wars in the United States instead the market continues to run [Music] free, especially the financial one, has no limitations of any

15:52 kind, shares and stocks grow more and more, inflating a bubble that seems never-ending until one Thursday at the end of October 1929, in the Wall Street stock exchange building, the ghost of Marx and his old prophecy appeared, that day was the first time that capitalism collapsed on itself. By neoliberalism, we mean that neoliberalism is an economic doctrine

16:40 that was born in reaction to the social economy for the public interest that exploded with Marx throughout the period of the so-called classical thinkers. It had a very important revival after the First World War with thinkers like John Robinson and obviously John Miner Keynes, but they cannot fail to remember Michael Keski, who no one remembers, a Polish man, an economic genius. These men and women created the social economy, that of the so-called Welfare. The beverage in England,

17:28 that is, they created an economic idea that took us from the nineteenth century to Dickens, that is, D, the exploitation of the poor, of the children who worked. in the mines to the idea that a company is a state Should use its own currency for the public interest by guaranteeing rights is a thesis that takes its cue from what is let's say the doctrine of the so- called critical economists first of all John Miner Kees Kees when he wrote and wrote during the time of the great depression of the 30s Well he argued that evidently without an intervention of the economic policy authorities a capitalist economy is not able to spontaneously reach full

18:14 employment and in this sense and according to this vision it is necessary that the intervention of the political authorities of the government as well as of the central bank must be coordinated precisely in order to create that of goods and services that allows to increase the production of goods and therefore the employment of workers to a sufficient extent to be able to create full employment in 1933 United States out of the great

19:00 depression based mainly on the Cesian model took the name of New Deal the first provision of the New Deal is the issuing of the Glass Stigal law which provides for the separation of commercial banks from investment banks subsequently dozens of state programs for the creation of jobs were created [Music] the millions of The unemployed who enter those state plans work on the

19:46 construction of large public works such as roads, dams, schools, public buildings and citizen services. Unemployment is halved. Infant deaths, suicides, crimes and diseases are rare. At the same time, public works are built in every part of the United States. The New Deal radically changes the role of the State in the economy. Public power is no longer a simple spectator, on the contrary, it becomes the regulator of the system. The Roosevelt government is also the first in the history of the United States

20:31 to establish a collaborative relationship with the unions by involving them. In the [Music] measures, the United States recovers from the Great Depression thanks to Roosevelt's social policies. In Europe, however, nationalism becomes increasingly aggressive while the war causes dozens of deaths among soldiers and civilians. In 1944, there was an important conference in the town of Bretton Woods in the United States, where the future winners agreed on the trade relations to be maintained once the conflict was over. In Bretton Woods, Kees proposed a

21:19 model aimed at protecting economies that applied a criterion of solidarity between States. But his proposal was not accepted. Harry's proposal was chosen instead. Dexter White who led to the establishment of the International Monetary Fund and the World Bank economic organizations that could lend money to member countries But a few decades later they will be transformed into powerful weapons in the hands of the elite The Second World War ends The United States and the Soviet Union are the great winners Germany occupied by the Allied armies It is divided and with it the

22:09 entire world is divided in 1945 Europe is reduced to rubble the cities are devastated by bombings and the population is greatly impoverished but in that political vote created by the war European societies reach a new awareness my mind goes Back to a meeting We had in a TR Ship and One got He said in the 30s We had unemployment Said we don't have unemployment in war Time He said If you can have full employment Killing Germans Why can't You have full employment building Homes building houses building schools recruiting teachers recruiting nurses recruiting Doctors and that argument [Musica ]

23:01 toed in force the togan collectively and You Can Be incredi powerful You can defeat fascism and they Came Back imbued with that Spirit saying anything [ Musica] possible Liberal had been Given the Task of looking at the world after the War and he identified Five Giants poverty unemployment illness And so on want must Not Be known again idleness there Must Be no Mass unemployment the Giant Evil of only Yesterday Ignorance say William No democracy

23:48 Can nows afford disease the Evil of disease Must Be overthrown squ no more Generations Must Be stunted in squ [Musica] the Bever report became part of the political agenda of the Labour Party which in 1945 won the elections in the United Kingdom

24:39 if in England the political balances simply change in France Italy and Germany instead new constitutions are drawn up liberalism was considered the cause of the imbalances it created and therefore new theories the Chiana theory and regulated society they regulated it On the basis of the fact that a large part of the structure of the Kesian economic model was incorporated into the constitutions in various ways then ins Let's say in England where there is no rigid written Constitution there was the famous Bever report but in short society began to change a little renegotiate the balance, this however, was a

25:26 tremendous setback, an Endo setback to which we say the liberal soul of capitalism, almost totalitarian, but in short, was willing to continue to make concessions in the post-war period of the 20th century after the Second World War because there were Stalin's tanks, because there was the Soviet bloc, the Iron Curtain, and then liberalism, if it had revealed itself again in its attempt to control society in the previous ones, would have triggered a reaction not only of social instability, let's say, but of a real revolution. The hold on the people that the

26:12 socialist and communist parties had in the immediate post-war period and the Soviet giant now at the gates of Europe, unbalanced the post-war constitutions. In fact, they attested to a change of era that had begun 10 years earlier with the New Deal in the United States. The democratic state that intervenes in the economy for the development and well-being of the entire community. The Italian constitution of 1948 is perhaps the most advanced social treaty that humanity has ever written and it is more than the others conditioned by the model. Kesian its

26:58 fundamental rights In fact they cannot be guaranteed except by state spending the constitution in reality has never been truly applied the 60s and 70s saw hard struggles in the streets and in the factories the democracies as also written by the authors of The Crisis of democracy In those years They were impetuous and the workers obtained unexpected results until a few years before in the mid 70s other nations freed themselves from new and old dictatorships in Portugal Greece and Spain new constitutions with a strong

27:47 social content were drawn up Europe in the 30 years that followed the war It earned the title of continent of rights in a certain sense it put a good face on a bad game and therefore continued to grant the Kesian model to democratic constitutions to the creation of Social Rights therefore to the redistribution to the multi-class society that is a political power that was shared in which the political class had the function of mediation not only of representing the economically prevailing interests but of mediation between the various economic or social classes as you want to say at the beginning of the 70s capitalism The Chinese system adopted by

28:32 governments was truly changing its face. And the Social Rights gained by the people were pushing the entire West towards a new social order where poverty and misery left room for the formation of a new economic class. The middle class, the increasingly rich and powerful masses, would never again be as easily blackmailed as before. However, the idea of ​​a return, a revenge, always remained latent and this aspiration then finds cultural references. Precisely in the neoliberal economists who have various strands but let's say the

29:18 main one that had the most influence was that of the Austrian school of Friedman, who in turn, due to various vicissitudes that would be long to retrace now, has an enormous direct influence on the Chicago school, that is, on monetarism, which is embodied in Friedman when one finds, let's say, the perception that there is a loosening of the deterrent capacity of the Soviet bloc. No, a sort of continuous tension for which one tried to make an improvement. Then one succeeded, in fact, the attempt to recover all the lost ground begins.

30:06 [Music] Us 19th of Our Nation milt Fried the Nobel PR Peace PR in economics Years earlier in the same Year as the declaration of Independence Adam Smith The scots published a book titled the wealth of Nations

30:52 United to Then q What are they doing? They want to turn the machine back and say this social economy is not good for us. It has given too much power to the people, too much power to consumers, too much power to families. The idea of ​​the Welfare State is an aberration. The state, and this is the number one point of neoliberalism, has become too big. It is heavy, it is enormous, it is powerful. It has the army, it has a sovereign Parliament, it has

31:39 infinite currency, therefore an economic power that no private individual will ever be able to have. This State must be reduced. And in fact, the number one dogma of neoliberalism is to shrink the state, practically make it disappear from the social scene. Fail and Think may have been like that. What President Kennedy Said if a free Society cannot Help the many Who are rich and cannot Save the few who are rich and to say that Well, we are govern of the people and when there is a large sector of the people Who are hurting perhaps It is the responsibility of free people to be free. How free are they? Free people are dis. That is govern. [

32:38 Applause] All onee For the First of all government any responsibility responding doib you and I have responsibility People have responsibility the Question is how can we as People exercise our responsibility fellow effec so far poverty is concerned there has never in his a more effec Mach For eliminating poverty The Free Enterprise System The Free Market [ Applause]

33:31 19 20th Century Those the of that We benefited from the way In which our parents and our grandparents able to come here and by virtue of the Freedom that was offered to be able to make a better Life for themselves our them and Us but Next If You Look at the realty people [ Music] the theories of the Austrian school and subsequently of Chicago give new life to the aspirations

34:17 of the elite And in fact from the studies of aek and Friedman that the ideology of Let us do it takes the name of neoliberalism Milton Friedman has the opportunity to explain this vision of the world in numerous conferences academic debates Television talk shows And even a TV series

35:06 to go to Desperate to Esc their Liv their some are ATT High Life Hong more very from utopia it has slums Cri desper People People are That's After Why So Many of them have come here Despite having to live leaky house in one of Hong Kong's small

36:06 Western high enough en them [Musica] People It's not government Trade unions These workers do well because there compete for their Labor and skill When a business faces trouble a market threat to disappear or new Comp arises are two things he can do he can Turn to the government for some other restri Comp he can ad in Hong Kong the first Option is closed Hong Kong to dependent on Trade so the

36:53 government does not [Musica] from this excerpt we can understand the key concepts of neoliberalism there are no acquired rights Home Health education and work each individual must earn them on the market workers are individual cells competing with each other each will be rewarded based on their productivity those who decide on investments

37:41 must be the most naturally skilled businessmen and companies wealth must trickle down [Musica] the condition is that the state and unions must not interfere and society will move towards a natural order the order of [Musica] markets at a certain point it was thought that practically giving the vote to the markets Yes, the vote for the markets, that is, to take it away from the citizens. That is, the citizens are no longer those who have to decide on the goodness or otherwise of the choices, even of the economic policy of their

38:28 country, but rather it is the markets that decide because there is this presumption which is a current of neoliberal thought that says that the markets are self-regulating while instead it is absolutely not true that the markets are self-regulating because this principle means in fact that the state must absolutely not intervene, must not interfere in the market mechanisms because the market finds more or less its right balance while instead we have seen in the current state of affairs that the markets not only do not find the right balances but actually create problems so big that the State then has to intervene to support it knowing the fundamentals of the economy

39:13 of macroeconomics which are then the Chinese ones because the liberal macroeconomics does not exist, liberalism is wrong because it wants to apply to the macroeconomics therefore to the state therefore to large figures etc. the criteria of business management therefore it would like everything to be [Musica] corporatised they elaborate their principles by studying the reality those neoclassical ones Instead they adapt the reality to their [Musica] principles the market could

39:58 function but in a system of perfect competition in a society where people all have the same means, the same information, the same wealth, the same social condition [Music] the idea that distinguishes neoliberalism is that the action of the central bank must not be aimed at creating jobs, the government must reduce the public deficit as much as possible and in

40:44 general the State must reduce its overall size compared to the rest of the economy and furthermore it is necessary for the State to abandon a whole series of sectors in which perhaps it operated through massive processes of divestment and privatization they believe that if I do not take resources away from the private sector, this will be induced to spend and invest more because it will have expectations of having greater spending availability and therefore everyone will tend to either consume

41:29 or invest more the crowding out effect does not And therefore this would induce greater growth because while if those resources are taken from the State they are used inefficiently if that same quantity of resources of wealth is left in the hands of the private sector the private sector will automatically be able to use it in a more efficient manner But this is a purely hypothetical theory it does not exist it has never happened in history not even when the neoclassicals first theorized this. As regards the large privatization process in Italy in the 90s, Italy in the 90s achieved the world record for privatizations after the United Kingdom. Well, today we can make a balance of that massive privatization process according to the

42:17 conclusion reached by the Court of Auditors. Privatizations have determined a strong increase in costs and a great profit for the so-called intermediaries, that is, all those investment banks and intermediaries who have intervened between buyers and sellers during the divestment operations and finally. Paradoxically, privatizations have very often determined, contrary to popular belief, contrary to the dominant ideology, an increase in tariffs. Here is the Italian case, for example, is a case in which we note how the whole ideology of privatization as a matter of efficiency. Well, it has not found reliable evidence in the

43:10 data that public debt must be entrusted to the markets and cannot be subject to intervention by the Treasury through the central bank which must respond to the indications of the government of the treasury of each country the idea of ​​deflation as a permanent objective or rather of deflation of inflation control as a permanent objective What What What And this basic idea this hostility the idea that public debt therefore the State must be a debtor under common law like any other economic entity and therefore must turn to the markets cannot print money because printing money increases inflation which has never happened is not verifiable even today we

43:57 continue to have to refute this idea an economic ideology that essentially says this the State must stop using money its weapon its number one cannon its power number one fire weapon for the social economy It must stop using money and how did they manage to convince the states they invented dogmas of fears of non-existent ghosts eh with which they paralyzed politics and public opinion they invented the dogma and the ghost of public debt the State spends too much it creates public debt which is the debt of the citizens everyone believed it this thing is completely false because public debt is an expense of the State which is the

44:42 credit of the citizens is not the debt of the citizens and will never be for the next 2 million years but they have convinced everyone that the public debt is the debt of the citizens everyone has become afraid of the State that spends they have invented the ghost of inflation if the State spends on social goods for healthcare for pensions there will be inflation inflation means that we all go to buy bread with wheelbarrows they have taken the ghost of the Weimar Republic they have waved it in all the newspapers everywhere and obviously they have created this terrorism inflation is a ghost I'll give you a figure Japan America England and the ECB itself have been trying for years with all their means to create inflation they are not succeeding But the

45:29 neoliberals have convinced public opinion and politicians that inflation is a monster and the state must not spend therefore away the money from social services from pensions from public salaries etc. the dominant thesis the neoliberal thesis is that the flexibility of work contracts and precariousness allow to increase the levels of employment because according to let's say the neoliberals if contracts are flexible then entrepreneurs should be incentivized to increase employment levels they should be more incentivized to hire Well in reality if we look at

46:15 the data again If we look at the empirical tests that have been carried out over a period of over twenty years On this topic Well we realize that it is not possible to establish any relationship between the increase in job insecurity and the increase in employment this conclusion has been reached None other than X the X that has been the most convinced and determined advocate of neoliberalism has adopted has carried out a series of empirical research in an attempt to demonstrate that job flexibility leads to more employment and has not succeeded these empirical research has actually produced results that are in contrast with the doctrine the same chief economist of the

47:00 International Monetary Fund Olivier Blanchard in 2006 recognized precisely that it is not possible to establish any relationship between greater job insecurity and greater employment So as to say the same leaders in some way of the world economic institutions defenders supporters of a doctrine that we could define as neoliberal in reality They have recognized that the idea that more employment can be determined by greater precariousness is actually an idea that has no basis in their conception. For example, a subsidy for those who are taken out of the world of work is not excluded. For example, the concept of citizen income is present in

47:48 AEK and therefore in a certain sense the most aggressively neoliberal economic process does not exclude the fact that one can then go and help the most disadvantaged but it always does so with a profoundly classist vocation, that is, it is preferred that a person stays at home and does not have a job and who perhaps however enjoys a monetary subsidy Rather than having that person inside the workplace. The reason is political, not economic. Because by excluding this whole series of people from the world of work I also exclude them from the decision-making capacity regarding what, how much and how to produce and consequently I leave this decision in the hands of a

48:34 few and if you want to react and challenge these policies you must not do it simply from the economic side, that is, you must not only explain that economically they do not work because in itself it is not enough to understand why. They exist to eliminate a growing segment of the population from decision-making capacity. When you don't have a job but you are subsidized, you are not a full citizen and consequently even if I eat alive I survive and so on I do not participate fully in the Democratic process

49:20 this dominant economic thought that sees in capital the benefactor of humanity As long as it is absolutely free from any constraints. Well this meant the media. It meant big newspapers. It meant television let's not talk about it. It meant university teachings for 30 years in the economics courses at the university. Let's say that between 90 and 95% teach neo-neoliberal economic theories even after the crisis of 200728 has severely hit AB. These theories are criticized, this neoliberal Rivals that has shrunk the

50:05 States has defeated classical economics for the public interest has paid because it is obviously the big capitals of Finance that are behind it has paid the journalists has paid the televisions has paid the intellectuals has paid the university but of this we have the proof a Carl Brunner very economic name of the 10th century neoliberalism said it to a at a conference in 1976 if I'm not mistaken Brem in Germany said we have to conquer the university conquer the publishers of economics textbooks pay our authors because they say what we say [Music]

50:53 we offensive started in the universities and in the so-called vats reservoirs of thought already in the 50s and 60s the Chicago Boys of which Milton Friedman was the most the most well- known representative already starting from the 50s in the climate of the Cold War a US government program born to counter socialism in South America began to finance exchanges of economics students with the University of Chicago Milton Friedman and his people thus had the opportunity to indoctrinate hundreds of economists who returned to their countries in the hope of being able to influence the economic choices of their

51:38 governments the experiment of the so-called Chicago Boys was attempted in several South American states but only in one were there the favorable conditions to experiment their studies Chile under the regime of Augusto Pinochet in 1971 2 years before his rise unidad Popular The Chilean left-wing coalition led by Salvador Allende wins the elections. Its program includes the nationalization of raw materials and primary services to the population, wage increases, a price freeze on consumer goods, and worker participation in the management of

52:24 state-owned industries. The Pact is aimed at the creation of democratic socialism, and its implementation can upset the political and economic balance of the entire world. At the end of the 2nd, only paraun est para frente confli frontal. Grand

53:12 trans Inter eic milit Glob dep la activid non fisal Parlamento nunti representativa collective una palura potic Delo la che m amic fruttano lavoro e materiali raw materials.

53:58 The implementation of the Unidad Popular program will sweep away any possibility for American business to exploit labor and resources on Chilean soil, but Chile also represents a threat beyond the Iron Curtain. The leaders of the Soviet Communist Party never fully supported Allende and his party. The example of democratic socialism would have caused the foundations of their system of power to collapse. It is above all the example of Allies to scare the power Chile would have been a model to follow for other states and could have triggered a chain reaction throughout South

54:46 America the Allies project had to be stopped in its tracks against Chile a real war is unleashed but the Pop government resists and the consensus among the Chilean people continues to grow

55:36 no alternative Only Imp [Applause] unto dier against our country at the first light of dawn armored troops advanced against our presidential palace his ministers and advisors were inside they did not flee while the palace of the moneda was bombed

56:40 The coup d'état was led by General PIN but supported and backed by the American government and by Ciao [Music] now return the favor to those who had helped him take power the request is simple recall Milton Friedman's Chicago Boys back home The Chicago graduates will occupy all the key positions to govern the Chilean economy the Ministry of Economy and Finance the Central Bank as well as university chairs and newspaper editorial offices

57:26 the imposed reforms were very harsh and implementable only by a Brutal dictatorship, neoliberalism returns Chile into the hands of American business, interrupting the great economic and social development that the Agende government was carrying forward [Music] His ideas and actions, however, leave a great example to history and his words in a few years become prophecies trans solo contes genin desarrollo cheora

58:13 inol Industrial asent Fe grandes Val la Laerte vales tendr prer non podr ser destru [Applause] [ Music] [

59:04 Applause] [Music] [Applause] [Music] [Applause] when Agende gave this speech the power of the multinationals was but a crumb of what it is today in the mid-70s in the United States and Europe democracies were increasingly more participatory the socialist and communist parties had a great popular consensus and the determined and resolute union struggles involved all the workers if there will be employment there will be employment on

59:50 our part too night and day if the case but all of us together I no longer have Agnelli mna goes to the kitchen hard China to impose policies neoliberal it was necessary to necessarily get around the obstacle or influence public opinion with a slow and long infiltration work in every place that allowed those ideas to be transmitted. Universities and the media were the main targets for infiltrating politics, but something more was needed. They were born and spread. In those years the so-called

1:00:37 think tanks were authentic reservoirs of thought where white collars could be trained to be placed in positions of power in the institutions. When in the mid-70s an oil crisis due to the closing of the taps by the producing countries caused inflation to soar throughout the West, the Kesian system was no longer able to guarantee the same level of development as in previous years for those who worked their entire lives to overthrow that system. That was the moment of the limelight in 1974. Friedrich von Aek won the Nobel Prize for economics and in 1976 the prize went into the hands of Milton Friedman

1:01:30 [Applause] [Music] from that moment on, just over two years passed before Friedman's ideas found a place in the Parliament and government of a democratic country in 1976. 1979 Margaret Toucher wins the elections in Great Britain even if the English society reacts strongly to her policies the process has begun and as Toucher herself said there is no alternative

1:02:17 [Applause] There's actually a really interesting Exchange between Fried V and Margar Thatcher that I quote in the shock doctrine Where Fried said I have just come back from Chile it's wonderful what PIN has done and He's describing this Fantastic experiment in neoliberalism AND says I think you should do this too and and he was a mentor of Margaret Thatchers and she wrote him back Quite a stern reply and she said these types of policies are incompatible with constitutional democracy [ Music] What saved Margaret

1:03:02 Thatcher's career as a politician What got her reelected was the Falklands War and she literally said We Won the War abroad and Now We Must Win the War at home and the War at home was a War Against Trade unions and she was explicitly referring to the Coal miners and in extraordinarily violent Way government Beat down 2 years after the victory of the Thatcher in the United Kingdom it was the turn of Ronald Reagan in the United States winning the elections was a breeze for a former Hollywood actor especially because none of his films

1:03:47 were financed like his electoral campaign to bring neoliberalism to the United States an actor was needed and who better than an actor could read a script like this the political intentions of the Rean government

1:04:34 were immediately clear as clear were those of Margaret Thatcher [Music] Margaret Thatcher and Ronald Reagan presided over their respective governments for almost all the years 80 introduce R that destroys the

1:05:22 Social Rights conquered in the decades deep, large pockets of poverty are forming again and as at the beginning no. Elites are increasingly richer. They acquire immense global power. The Reagan government immediately resumes the colonialist policy that the previous Carter government was attenuating. But you don't need warships and occupation troops to plunder the resources of a nation and keep it in a state of poverty. Just use the debt trap. The weapons are the dollars of the

1:06:09 International Monetary Fund and neoliberal economic recipes. But sometimes it happens that someone doesn't agree. Here's another one. You have a t-shirt with the brand you advertise Levis. They certainly made that t-shirt well. Levis makes really nice jeans. But it's an American product and you 're not American, you're not from San Francisco and it says San Francisco there, so at least they pay you because if they don't pay you, it doesn't make sense. That other one over there, the one who asked a Harvard application earlier, but at least you know where he is.

1:06:56 Sometimes I don't understand anything anymore. Too many strange things, don't you think? Do you really think that here isn't the case? we know and we can make beautiful t- shirts Tom Sancar wants the inhabitants of his country Burkinafaso to be able to benefit from their own resources and consume the goods that they themselves produce [Music] assassination technicians They were the ones who

1:07:43 proposed the financing channels to us the financiers telling us that they were the right things To take off our development ILO well-being they presented us with bundles of dossiers and attractive financial prospects those dossiers were very elegant but now we find ourselves in debt for the next 50 60 years and maybe more that is We have been convinced to compromise our people for 50 years and more privatize everything Sell your schools your electricity

1:08:28 systems your water seage systems Everything to our corporations and vote with us on the next United Nations vote and allow us to build a military base on your soil in few cases Where economic hitman fail the Jacks come in and they either overthrow governments or assassinate leaders and I I had a personal experience Where couple of them withy Ros the democratically elected president of eador [Music] they want all the money back they gambled they tell us that otherwise we it would be the crisis and instead no Mr. President

1:09:15 they played now they can also lose these are the rules of their game and life will go on But if Burkina Faso remains the only one to refuse to pay I will not be at the next conference If instead I have the support of all of you support which I will greatly need if we are all united we will be able to avoid paying and therefore use our resources for the development of our countries Sanara He was killed on October 15,

1:10:00 1987 the hand that held the gun was that of his former friend General BL Compur who with the approval of the Rean and Mitan governments took his place in government while Burkina Faso and other developing countries are once again subjugated by the interests of neoliberalism He continues his charge in every corner of the world even where you would never expect [Music] Deng Xing the new leader of the Chinese Communist Party is suddenly fascinated by the ideas of [Music]

1:10:46 Friedman in China his phrase we owe it to the gods they will benefit But at the end of the 80s we arrive at a a real turning point in [Applause] [Music] history Germany is reunified and the Soviet Union is about to dissolve beyond the wall waiting for the Russians there was no freedom and democracy nor that

1:11:32 capitalism with a human face that everyone expected [Music] on the eve of the first democratic elections in Russia after 80 years of regime the English weekly the Economist titled an article urging Gorbachev to follow the Chilean model of Pinochet and the Washington Post echoed it by publishing an article in which it even reads that an economy to function needs free markets but not free people the entire industrial apparatus of the former Soviet Union is privatized In the following years Russia sinks so quickly into

1:12:18 misery and the most abject poverty that the life expectancy of Russians drops by almost 10 years a true authentic and little-told social catastrophe [Music] neoliberalism in less than 20 years went from the books and theories of aek and Friedman to the decisions of the majority of governments in the world No, not in the whole world the old continent with its constitutions still resisted no siege would have brought down its walls to conquer it

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