Feb 16, 2021
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How Klaus Schwab copies Milton Friedman

Under the “inclusive capitalism” I have already written about, Klaus Schwab this implies a socio-economic model that “outgrows” existing capitalism, but at the same time remains capitalism.

Existing capitalism emerged three to four centuries ago, and has changed more than once throughout history. In the late XIX – early XX centuries. capitalism began to grow from the stage of free competition to the stage of monopoly, which is well described in IN AND. Lenin in the work “Imperialism as the Highest Stage of Capitalism” (1916). In the twentieth century, the state and monopolies merged, the formation on this basis of state-monopoly capitalism (MMC). In the first two to three decades after the end of World War II, capitalism was characterized by strong state intervention in the economy, influenced by the idea of ​​Keynesianism.

In the 1970s, Keynesianism began to be supplanted by economic liberalism, the main ideas of which are: 1) minimization of state participation in the economy, reliance on the market as a mechanism for automatic regulation of economic life; 2) the focus of private business on maximizing profits in the interests of capital owners (shareholders).

The concept of such capitalism was most frankly formulated by the American economist Milton Friedman (1912-2006). In 1976 he was even awarded the Memorial Economics Prize Alfred Nobel… Friedman directly proclaimed what others were embarrassed to say: there is no other responsibility for the business, except for the owners (shareholders) to receive maximum profit, and cannot be. And all the talk about “social responsibility” is chatter. Milton Friedman liked to say: “The business of business is business”… This is very clearly expressed in his 1970 article “The social responsibility of business is to increase profits.” (Social responsibility of business – increasing profits)

A year after this article appeared, Klaus Schwab announced the creation of the World Economic Forum (then called the European Management Forum). And in 1973, Schwab issued a manifesto in which he argued that business companies should not only care about profits, but also work in the interests of shareholders. These were sketches of what later became known as “inclusive capitalism” or “capitalism of all stakeholders.” (stakeholder capitalism)

Schwab says that if the “civilized world” (“civilized” in this language is the world without the USSR) made a U-turn in the 1970s towards “inclusive capitalism”, then things would probably be better in the world economy now.

However, one should not exaggerate the degree of contradictions between Friedman and Schwab, they are not antagonists, they just have different ideas about how to make capitalism effective. And in the question of the methods of establishing “perfect” capitalism, they generally have complete similarities.

Milton Friedman talked about “shock therapy.” Here we must recall the book “The Shock Doctrine: The Rise of Catastrophe Capitalism” published in 2007 (Shock Doctrine: The Rise of Catastrophe Capitalism) Naomi Klein, a Canadian journalist and sociologist (in 2009 the book was published in Russian). The shock doctrine is a universal set of techniques with the help of which the upper classes unfold and rebuild society in the direction they need. Milton Friedman made a significant contribution to the development of the doctrine and technique of shocks. Klein compares Friedman to a doctor Even Cameron, who in the late 50s – 60s, commissioned by the CIA, conducted experiments with torturing people using electric shocks.

The philosophy of shock therapy Milton Friedman contains a description of what manipulations need to be done on the “experimental patient” – the economy. At first, it is necessary to abolish all laws and regulations that restrict the freedom of the capitalist to make money, accumulate capital. Secondly, it is necessary to privatize all any profitable state assets. Thirdly, most of the taxes should be removed from the capitalists. At the same time, all social programs financed from these taxes should be eliminated.

Friedman’s contradictions do not bother him. For example, the abolition of laws that prevent money making suggests that antitrust laws should also be abolished, because where there is a monopoly, there are no “fair” prices, and therefore there is no free market.

You don’t have to be a professor of economics, like Friedman, to understand the elementary: if the state is removed from the economy, monopolies will come in its place – trusts, concerns, syndicates, cartels. It was them that Friedman served.

The fact that the names of Milton Friedman and the sadist Even Cameron were close to Klein is no coincidence. This doctor (Cameron) is very reminiscent of a fascist sadist doctor Josefa Mengele, who conducted experiments on prisoners in concentration camps. According to Cameron’s methods, Klein notes, officers of the “death battalions” in Honduras and Guatemala were trained in the 1980s. And after the events of September 11, 2001, Cameron’s methods were legalized in the United States as a means of fighting terrorism.

Ask how you can compare Milton Friedman with Klaus Schwab, who talks about the “social responsibility” of corporations, the consideration by corporations of the interests of all social groups, and the need to take care of future generations? Can.

“Pandemic”, Klaus Schwab convinces, opens the door to a new era. Ahead is “inclusive” capitalism – a new utopia in which, say, working people are not excluded from the list of recipients of a fair share of social wealth, but are included in this number. Klaus Schwab writes: “The problem of desynchronization between the two groups (decision-makers and the public), whose horizons differ greatly, is acute, and it will be difficult to cope with it in the context of a pandemic. The swiftness of the shock and the depth of the pain inflicted is incomparable with the political side of the issue “… A familiar word: shock! This in Klaus Schwab says Milton Friedman.

Commenting on some of Schwab’s statements, Advisor to the Russian Defense Minister Andrey Ilnitsky in the article “The Geopolitical Basis of Russia’s Future” he writes: “Schwab openly instructs politicians not to loosen the restrictions, urging them not to lift the quarantine, no matter what resistance they face. Moreover, Schwab emphasizes, the resistance of the disobedient must be crushed, and there are as many ways as you like! No one should have a shadow of doubt – a return to normal life should not even be thought of. This will not happen, because this can never be! Schwab is cynical, like that orderly from the joke – “THE DOCTOR SAID TO THE MORGUE – MEANS TO THE MORGUE!”

It is no coincidence that the Norwegian political scientist Paul Steigan, evaluating Klaus Schwab’s “Great Reboot” plan, called it “Revival of fascism in a new form”

Photo: Milton Friedman,

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