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Context of '1956: University of Chicago Begins Program to Educate Chileans in Economics'

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A joint project is started in which students from Chile will be sent to learn economics at the University of Chicago using funding for tuition and other expenses from the US government as well as private organizations such as the Ford Foundation. The University of Chicago’s Department of Economics is at this time a bastion of strict adherence to pro-free market thought. The chairman of this department, Theodore W. Schultz, came up with this plan along with an official from the US government during a meeting in Santiago, Chile, in 1953. Schultz himself stated that he desired that the countries of the third world, “work out their economic salvation by relating to us and by using our way of achieving their economic development.” By 1970, some 100 students from Chile will have sought advanced degrees from the University of Chicago. [Klein, 2007, pp. 59-60]

Entity Tags: University of Chicago, Theodore W. Schultz

Timeline Tags: Neoliberalism and Globalization, US International Relations

“The Brick,” a 500-page economic blueprint later used by Augusto Pinochet to formulate Chile’s economic policy, is drafted by a ten-man group, eight of whom had previously studied at the University of Chicago (see 1956). The group was put together by Orlando Sáenz, president of the National Association of Manufacturers, to “prepare specific alternative programs to government programs” that the military could use. Saenz took this step following a meeting between the heads of various Chilean businesses to discuss plans for toppling the regime of democratically-elected leader Salvador Allende as well as a suitable replacement. [Klein, 2007, pp. 70-71]

Entity Tags: Orlando Sáenz, Salvador Allende Gossens, Augusto Pinochet, National Association of Manufacturers (Chile)

Timeline Tags: Neoliberalism and Globalization

Sergio De Castro, leader of the Chicago University movement in Chile and the head author of “The Brick,” is made a chief economic adviser to Augusto Pinochet’s authoritarian regime almost immediately after the overthrow of the democratically elected government of Salvador Allende. During the first one and a half years of Pinochet’s rule, Chile is subject to a large array of neoliberal economic reforms. These include the privatization of state-owned firms, financial deregulation, removal of import tariffs, a ten percent cut in government spending (with the notable exception of military spending), and the termination of price controls. As a result, the cost of basic goods will skyrocket while domestic industries are put out of business by imported goods. Orlando Sáenz, who originally recruited the Chicago School graduates to redesign the Chilean economy (see September 1971-September 11, 1973), will declare the consequences to be “one of the greatest failures of our economic history.” [Klein, 2007, pp. 79-80]

Entity Tags: Sergio De Castro, Augusto Pinochet, Orlando Sáenz

Timeline Tags: Neoliberalism and Globalization

A parcel mailed from Chicago catches fire in a mailbag aboard American Airlines Flight 444 from Chicago to Washington, DC. The package contains a bomb which was apparently constructed to explode inside the cargo hold. Twelve passengers are treated for smoke inhalation; the flight conducts an emergency landing at Dulles Airport near Washington. [BBC, 11/12/1987; Washington Post, 1998] The bomb does not ignite because instead of explosive powder, it contains barium nitrate, a powder often used to create green smoke in fireworks. [World of Forensic Science, 1/1/2005] The bombing is later shown to be the work of Theodore “Ted” Kaczynski, the so-called “Unabomber” (see April 3, 1996). After the airline bombing and the subsequent bombing of a United Airlines executive (see June 10, 1980), the FBI ties the previous bombings (see May 25-26, 1978 and May 9, 1979) to this one and code-names the file UNABOM, for “UNiversity and Airline BOMber.” The media will soon dub the unknown assailant the “Unabomber.” [Washington Post, 4/4/1996; World of Forensic Science, 1/1/2005] Kaczynski will later express regret for trying to bomb the plane (see April 24, 1995).

Entity Tags: Washington Dulles International Airport, Theodore J. (“Ted”) Kaczynski, Federal Bureau of Investigation

Timeline Tags: US Domestic Terrorism

Democratic strategist and MSNBC commentator Krystal Ball.Democratic strategist and MSNBC commentator Krystal Ball. [Source: Television Internet (.com) / LA Late]MSNBC talk show host Ed Schultz discusses the controversy surrounding Georgetown University law student Sandra Fluke, who testified in opposition to a House amendment that would have allowed health care providers to deny contraceptive coverage and other health care necessities if they had religious or moral objections (see March 1, 2012) and is now being vilified by conservative radio host Rush Limbaugh (see February 29, 2012, March 1, 2012, and March 2, 2012). Schultz says that Limbaugh’s “shameful… vile, and despicable” attacks and the “firestorm” of criticism in response (see March 1, 2012, March 2, 2012, March 2, 2012, and March 2, 2012 and After) may be “the beginning of the end” of Limbaugh’s 20-year domination of the airwaves. Schultz notes that Limbaugh is deliberately misrepresenting Fluke’s position on contraception as a call for the government to pay her for having responsibility-free sex. In reality, Schultz says, Fluke’s testimony focused not on her personally, but on the needs of female students to have contraception for serious and sometimes life-threatening medical reasons. Schultz notes the relative quiet from Republicans on the controversy, including the failure of Republican presidential candidates to repudiate Limbaugh’s remarks (see March 2, 2012) and the tepid criticisms from some Republican lawmakers (see March 2, 2012). Schultz celebrates the advertisers who are removing their ads from Limbaugh’s show (see March 2, 2012 and After). However, Schultz notes that Limbaugh remains entirely unapologetic, and says that Limbaugh’s attacks and his refusal to apologize “underscores this is just who he is.” For Limbaugh to attack a private citizen, a college student, with personal attacks such as “slut” and “prostitute” for “speaking her mind to Congress” is unacceptable, he says. Limbaugh has “no character,” Schultz says, and is incapable of admitting error. Schultz’s guest Reverend Al Sharpton, a fellow MSNBC host, says Limbaugh is engaging in what he calls a verbal “direct sexual assault” on Fluke: “This is not an implication using sexual terms for something political. He is downright denigrating her and making direct references like she has some sexual habits that is causing her position, which is not only untrue, it is absolutely intolerable.” The advertisers will continue to pull their ads, Sharpton predicts, civil rights and women’s rights organizations will intensify their criticisms, and Limbaugh’s employer, Clear Channel, will eventually have to take action. “[T]his might be Rush’s undoing by Rush,” Sharpton concludes. Democratic strategist Krystal Ball tells Schultz that she is launching a “Boycott Rush” Web site. She recalls being attacked by Limbaugh during the 2010 elections, when she mounted an unsuccessful campaign for Congress and was targeted by Limbaugh and other conservative commentators over private party photos of her that were released online; she sympathizes with what Fluke is experiencing now. [MSNBC, 3/2/2012; LeftAction, 3/2/2012]

Entity Tags: Edward Andrew (“Ed”) Schultz, Al Sharpton, Sandra Fluke, Rush Limbaugh, Krystal Ball

Timeline Tags: Domestic Propaganda

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