COVID-19; Another Episode in The Shock Doctrine Series?

History is a chronicle of disasters — wars, natural disasters, and economic crises—and their aftermath.  And during moments of disaster, the previously unthinkable suddenly becomes reality.  In recent decades, the aftermaths of many catastrophes have often been characterized by governments and global elite exploiting large-scale crises to push through unpopular policies that systematically deepen inequality, enrich elites, and undercut everyone else.  This blueprint of action is known as the “Shock Doctrine”; a term coined by activist Naomi Klein.  Will the still-unfolding COVID-19 crisis follow suit?  It is already remaking our sense of the possible!?

Disaster and/or war profiteering isn’t a new concept, but it seems to have deepened after 9/11, when the Bush administration declared a sort of never-ending security crisis.  Since then, the “shock doctrine” tactics evolved and prevailed in the US – and in some other countries - and almost always prevented progressive policies from emerging in the aftermath of crises. Examples are plentiful on how political and economic elites used the early moments of a crisis to push through their policies.  Take what happened after Hurricane Katrina in the USA and how an impossible wish list of “pro-free market” solutions was passed through - almost overnight. In 2008, the legendary banks bail out eventually added up to many trillions of dollars.  Keep in mind that the real cost always comes later in the form of economic austerity.  

The coronavirus global pandemic – which we are yet to find out if the virus is an act of Mother Nature, or not - is creating multiple crises: the pandemic itself, the lack of capability to manage it, and the crashing economies.  A chain of events surrounding this crisis is beginning to emerge, and it is similar to the patterns of the “shock doctrine”.  The virus is forcing the world into a state of emergency, and it is being managed in a way that is maximizing confusion.  Which in turn is creating the perfect conditions for the global elite to implement agendas that would otherwise be met with great opposition if we weren’t all so disoriented.  For example, the US administration - and other governments around the world - are busy pushing for no-strings-attached corporate bailouts and regulatory rollbacks. Trump has proposed a $1 trillion stimulus package that would include cuts to payroll taxes (which would devastate Social Security) and provide assistance to big industries.  US Treasury Secretary is moving to repeal financial regulations that were introduced after the last major financial meltdown, as part of the 2010 Dodd-Frank Act.  The US has - so far - treated this not as a public health crisis but as a potential problem for President Trump’s re-election and for political branding/perception.  China, for its part, is indicating that it will relax environmental standards to stimulate its economy.  All of these ideas – and many others - were already lying around waiting for the right opportunity to implement.  They are certainly not being implemented because of their merit in mitigating the coronavirus multilayered crisis.  

This crisis — like earlier ones — could well be the catalyst to shower aid on the wealthiest interests in society, while offering next to nothing to the working class, wiping out family savings, and shuttering small businesses. But some governments and many interest groups are already pushing back — and that story hasn’t been written yet.