Since starting to read Naomi Klein’s Shock Doctrine I’ve been wondering what it takes to make a guy like Milton Friedman able to delude himself that his theories are worth a damn. The Chicago School of Economics is essentially a cult of personality, although instead of being a prophet of a personal god, Friedman was a prophet of disembodied principle: a mathematical theory of social organization. But I’m hardly the first to recognize the religious nature of Friedmaniac economic theory.
I wanted to know how psychology might explain the relationship between people like Friedman and those who use his particular brand of social Darwinism as the rationalizing window dressing on their own oppressive actions. It’s readily apparent that the psychology of those business and government elements who support Friedmanism also support violence, terror and other repression and are driven predominantly by a inflated sense of self-importance. So I did some digging the Internet. It was when I thought to replaced “self-important” with “narcissism” that I hit on a great article by the self-described “Dr. Sanity”: Narcissism and Society.
Dr. Sanity, sadly, feels he is unable to reveal his true name. And his blog site is somewhat disturbingly (and contradictorily) decorated with Right-wing ads. This may be a coincidence owing to the fact that today is the anniversary of 9/11. But don’t let these associations distract you from reading an interesting serious of articles with some good ideas. Here’s a quote from part III:
In some ways, the rise of human civilization from the cave to the present day has resulted because of attempts through the Rule of Law and social controls to set limits on the unrestrained Grandiose Self. This is primarily due to the destructiveness of the Narcissistic Rage generally associated with that part of the Self.
Because of this, the Grandiose Self has received a bad reputation philosophically, morally, and politically. The natural development of Governments and Religions (which ultimately are an expression of the Idealized Parent Image/Omnipotent Other side of the Self)have all too often attempted to ruthlessly suppress the Grandiose Self–much to the detriment of the individual AND the success of the particular society or religion.
In fact, despite the obvious truth that governments, nations, and religions are in a much better position to wreak far more systemized misery and death on human populations, it is almost always the Grandiose Self that gets the blame. As Wretchard at The Belmont Club pointed out in a recent post, a review of the 20th century, for example, shows that all the “people’s revolutions” supported by the Left and purportedly for the purpose of “freeing” large populations of people; resulted instead in enslaving them and increasing authoritarian rule.
Without a political or economic framework that is able to incorporate what we refer to as “human nature” into its calculations, all so-called “perfect” societies and ideologies will at best simply fail in the real world; and at worse cause untold human suffering. With the best of intentions (this is perhaps debatable), the social engineers of philosophy, political science, and economics have caused so much more slavery, misery and death on a grand scale–that the grandiose CEO’s of the largest corporations can be considered mere pikers by comparison.
And more to the point:
A perusal of any list of economic systems will demonstrate that ALMOST ALL OF THEM are relatively extreme expressions of the Idealized Parent Image/Omnipotent Object. Almost all emphasize the group, the community, the collective, the nation, the state, or god at the expense of the individual. Examples are numerous. Socialism and Communism; fascism and religious fundamentalism.
Unfortunately, at that point, when there is a chance to start a conversation on what really works to balance the good of the group versus the good of the individual, the discussion instead ends with a truism about capitalist democracy:
The political and economic system that is optimally compatible with the Grandiose Self and the Idealized Parent; and which maximizes individual freedom, while acknowledging the needs of others…is Democratic Capitalism. When combined with Democracy and individual freedom, Capitalism will provide the greatest measure of happiness and well-being (by encouraging a Cohesive Self)for the greatest number of people. It allows for optimal expression of the Grandiose Self and limits (but does not suppress) it by the Rule of Law. And Democracy limits the power of the state also by the Rule of Law and by specific protection of minorities from the majority. The optimum advancement of each individual person will occur by securing for the individual the greatest amount of mental and physical freedom compatible with the general welfare.
The unique aspects of Democratic Capitalism are not shared by any other political, economic or religious system. To the extent that other systems permit capitalistic endeavors within a fundamentally authoritarian system (e.g., China), individuals will be somewhat better off. But it is still not the optimal combination that maximizes the expression of both sides of the Self.
What is conspicuously absent is the admission to the possibility that even democracy and capitalism can be undermined by the “Grandiose Self”, to the extent that its surface appearance may belie its true operation. However, the author does admit, “I do not pretend to have all the answers, nor do I believe this analysis is perfect. Narcissism alone cannot explain all of human behavior, let alone all of the evil in the world.” Indeed, the presence and effect of narcissism is more complex than the author admits, as are the contributions of all of the components of any non-linear dynamic system (like a society).
What I think we need at this point in history is a better understanding of how the complexity of our social, political and economic systems can be manipulated by selfish, immoral persons and groups to pervert the functioning of institutions to the point where they act against their original purpose and intention—to increase the common good—instead being used to further the agenda of a powerful and narcissistic minority.
My ability to apply these ideas to a critique of Friedmaniac economic theory is limited, but is comprised, essentially, of the observation that Friedman supported grossly non-democratic means of establishing free markets. Any means of removing the ability of government to affect the flow of capital is justified in his framework. Democracy, like government itself, is irrelevant. The whole essence of any proof of its failure is based on this anti-democratic and pro-authoritarian grounding.
Here is a nice summary of Narcissism and Corporate Fraud: Narcissistic Abuse in the Boardroom. But again, a quite small scale overview, missing out on the bigger, more nefarious enablers of such actions, including the theories that guide them and the institutions (governments, banks) that not only fail to stop them, but support them right up to the end, when to not take action would engender popular revolt.