The Shock Doctrine: The Rise of Disaster Capitalism

by Naomi Klein

How had they done it? Years later, Cavallo explained. “At the time of hyperinflation it’s terrible for the people, particularly for low-income people and small savers, because they see that in a few hours or in a few days they are being told their salaries got destroyed by the price increases, which take place at an incredible speed. That is why the people ask the government, ‘Please do something.’ And if the government comes with a good stabilization plan, that is the opportunity to also accompany that plan with other reforms … the most important reforms were related to the opening up of the economy and to the deregulation and the privatization process. But the only way to implement all those reforms was, at that time, to take advantage of the situation created by hyperinflation, because the population was ready to accept drastic changes in order to eliminate hyperinflation and to go back to normality.”