Milton Friedman, the Southern Cone and "Authoritarian Democracy"

A CULTURE OF DEFIANCE: History of the Reform-Conservative Party of Canada

The Southern Cone refers traditionally to the Latin American countries of Argentina, Chile, Paraguay, and Uruguay, and often includes Brazil.

In the 1970's, the area was the hotbed of left-wing ideals, with Salvadore Allende becoming the first democratically elected Marxist, when he became President of Chile.

But not everyone saw Allende's victory as positive.

Allende was hated by the Chilean monied classes for understandable reasons: he expropriated their large estates for peasant co-operatives and supported policies of large wage increases in industry. When he nationalized all U.S.-owned copper companies whose mines had been developed with U.S. capital and technology in the early years of the century and were still lucrative, he made an implacable enemy of the United States and its president, Richard Nixon. Henry Kissinger, then U.S. secretary of state, openly stated American intentions after Allende's election in 1970 when he said, "I don't see why we need to stand by and watch a country go Communist due to the irresponsibility of its people. " (1)

Fortunately for the monied classes, Chile already had a complement of free marketeers, who had been studying under the Chicago School of Economics. In the climate of the Cold War, a school was established in Santiago, to indoctrinate young students in the principles of neoliberalism.

Figuring out how to achieve that goal was the topic of discussion between two American men as they met in Santiago, Chile, in 1953. One was Albion Patterson, director of the U.S. International Cooperation Administration in Chile—the agency that would later become USAID—and the other was Theodore W. Schultz, chairman of the Department of Economics at the University of Chicago. Patterson had become increasingly concerned about the maddening influence of Raul Prebisch and Latin America's other "pink" economists. "What we need to do is change the formation of the men, to influence the education, which is very bad," he had stressed to a colleague. This objective coincided with Schultz's own belief that the U.S. government wasn't doing enough to fight the intellectual war with Marxism. "The United States must take stock of its economic programs abroad ... we want [the poor countries] to work out their economic salvation by relating themselves to us and by using our way of achieving their economic development ... (2)

The economic policy of developmentalism, then rampant in South America, was viewed as "pinko", and just a step away from Communism.

The two men came up with a plan that would eventually turn Santiago, a hotbed of state-centred economics, into its opposite—a laboratory for cutting-edge free-market experiments, giving Milton Friedman what he had longed for: a country in which to test his cherished theories. The original plan was simple: the U.S. government would pay to send Chilean students to study economics at what pretty much everyone recognized was the most rabidly anti-"pink" school in the world—the University of Chicago. Schultz and his colleagues at the university would also be paid to travel to Santiago to conduct research into the Chilean economy and to train students and professors in Chicago School fundamentals.

What set the plan apart from other U.S. training programs that sponsored Latin American students, of which there were many, was its unabashedly ideological character. By selecting Chicago to train Chileans—a school where the professors agitated for the near-complete dismantling of government with single-minded focus—the U.S. State Department was firing a shot across the bow

But despite the fact that they were churning out hand picked neoliberals, the Southern Cone was still progressive.

But the Allende victory, gave Friedman, and what were referred to as the "Chicago Boys", an opportunity to create a laboratory, to test aggressive free market principles.

And to achieve this, it was necessary to engage in what Augustus Pinochet, the planted dictator of Chile, would call "Authoritarian Democracy". And Milton Friedman, the man who once accused President Kennedy of trying to create a police state, when he announced that he would be regulating the price of steel (Time. April 22, 1962), would oversee the project from start to finish.

And not just in Chile:

... the next fix came from other countries in Latin America's Southern Cone, where the Chicago School counter-revolution quickly spread. Brazil was already under the control of a U.S.supported junta, and several of Friedman's Brazilian students held key positions. Friedman travelled to Brazil in 1973, at the height of the regime's brutality, and declared the economic experiment "a miracle."" In Uruguay the military had staged a coup in 1973 and the following year decided to go the Chicago route.

Lacking sufficient numbers of Uruguayans who had graduated from the University of Chicago, the generals invited "Arnold Harberger and [economics professor] Larry Sjaastad from the University of Chicago and their team, which included former Chicago students from Argentina, Chile, and Brazil, to reform Uruguay's tax system and commercial policy. The effects on Uruguay's previously egalitarian society were immediate: real wages dropped by 28 percent, and hordes of scavengers appeared on the streets of Montevideo for the first time. (3)

And the revolution spread:

Next to join the experiment was Argentina in 1976, when a junta seized power from Isabel Perlin. That meant that Argentina, Chile, Uruguay and Brazil—the countries that had been showcases of developmental ism —were now all run by U.S.-backed military governments and were living laboratories of Chicago School economics. According to declassified Brazilian documents just released in March 2007, weeks before the Argentine generals seized power, they contacted Pinochet and the Brazilian junta and "outlined the main steps to be taken by the future regime. (3)

And despite the human atrocities throughout this period, Milton Friedman is still considered to be a hero.

It's important for us to understand the mind of this man, because his Chicago School begat the Calgary School, and the Calgary School begat Stephen Harper. And the late Milton Friedman was one of the most influential men in the Canadian neoconservative movement.

Sources:

1. Long Shadows: Truth, Lies and History, By Erna Paris, Alfred A. Knopf, 2000, ISBN: 0-676-97251-9, Pg. 428

2. The Shock Doctrine: The Rise of Disaster Capitalism, By Naomi Klein, Vintage Canada, 2007, ISBN: 978-0-676-97801-8, Pg. 68-73

3. Klein, 2007, Pg. 102

Milton Friedman and the Destruction of Argentina

A CULTURE OF DEFIANCE: History of the Reform-Conservative Party of Canada

It is just as important to study Milton Friedman as Leo Strauss, in understanding Canada's neoconservative movement.

Friedman is one of the authors of the "shock therapy" economic system, where disasters are created or exploited, by the corporate sector. Free Marketeers will call it progress. Others see it as shocking and inhumane.

Because in order for the U.S. to control a foreign nation's economy, an authoritarian is needed, and that authoritarian is often a ruthless dictator. Case in point, Augustus Pinochet in Chile.

If you read Lawrence Martin's Harperland, or Christian Nadeau's Rogue in Power, you'll see how Stephen Harper took control, using ruthless means, and is now in a position to implement Friedman's policies. A bloodless coup.

Argentina's Shock Therapy

In her memoirs, Margaret Thatcher says of Argentina:

Whatever the Argentineans thought about it at the time ... the Falklands War provided a shock which brought first democracy and more recently, under President Menem, the economic benefits of free-market policies. Inflation has been brought down and a far-reaching privatization programme has been undertaken. Subsidies, regulation and tariffs have all been cut. Economic growth has sharply accelerated.

A little "shock" was good for them, says the lady who once declared that there was "no such thing as society".

In their book Commanding Heights, Daniel Yergin and Joseph Stanislaw, provide a bit of insight into the pre-coup Argentina, and what Thatcher called a "black economy".

Argentina had long been an economic paradox. How did a country that was one of the world's richest in the first decades of the twentieth century, end up in such economic disorder? A good part of the answer rested with Juan Peron. He is now best remembered, of course, as the husband of Evita, but in the years after World War II he was the embodiment of populism with an almost fascist tinge. Building on the prewar popularity of fascist ideas, Peron turned Argentina into a corporatist country, with powerful organized interest groups, big business, labor unions, military, farmers—that negotiated with the state and with each other for position and resources. He incited nationalist passions, stoked pretensions of grandeur, and pursued stridently anti-American policies. He nationalized large parts of the economy and put up trade barriers to defend them. He cut Argentina's links to the world economy which had been one of its great sources of wealth—embedded inflation in the society, and destroyed the foundations of sound economic growth. (2)

Viewed through a free-market lens, Peron would have been a disaster. So many opportunities for profit going to waste.

Peron was no saint, but according to Namomi Klein in The Shock Doctrine, life for Argentines was not as bad as suggested. Protectionism made many things unaffordable ($2000 just to install a phone), but the welfare state was alive and well. And like Chile, before their U.S. financed coup, the country had just undergone an intellectual revolution, where the arts thrived.

By the 1950s, Argentina had the largest middle class on the continent. Juan Peron had introduced Keynesian style economics "pouring public money into infrastructure projects such as highways and steel plants, giving local businesses generous subsidies to build their new factories, churning out cars and washing machines, and keeping out foreign imports with forbiddingly high tariffs." (3)

Naturally, this was anathema to the free marketeers, and when Peron died and his widow Isabel named leader, they sprang into action. From Henry Kissinger's records, recently made public, we learn that the U.S. were behind the 1976 coup that initiated the Argentine shock therapy.

Wages fell to 40% of what they had been and poverty became the norm.

But worse, was the wave of terror, under the planted dictator, General Jorge Videla, that followed the Chilean blueprint, to the Milton Friedman letter. According to Klein's Shock Doctrine:

When someone was targeted to be eliminated, a fleet of military vehicles showed up at that person's home or workplace and cordoned off the block, often with a helicopter buzzing overhead. In broad daylight and in full view of the neighbours, police or soldiers battered down the door and dragged out the victim, who often shouted his or her name before disappearing into a waiting Ford Falcon, in the hope that news of the event would reach the family.

Some "covert" operations were even more brazen: police were known to board crowded city buses and drag passengers off by their hair. In the city of Santa Fe, a couple was kidnapped right at the altar on their wedding day in front of a church filled with people."

The public character of terror did not stop with the initial capture. Once in custody, prisoners in Argentina were taken to one of more than three hundred torture camps across the country. Many of them were located in densely populated residential areas; one of the most notorious in a former athletic club on a busy street in Buenos Aires, another in a schoolhouse in central Bahia Blanca and yet another in a wing of a working hospital. At these torture centres, military vehicles sped in and out at odd hours, screams could be heard through the badly insulated walls and strange, body-shaped parcels were spotted being carried in and out, all silently registered by the nearby residents.

The Argentine junta was particularly sloppy about disposing of its victims. A country walk could end in horror because mass graves were barely concealed. Bodies would show up in public garbage bins, missing fingers and teeth (much as they do today in Iraq), or they would wash ashore on the banks of the Rio de la Plata, sometimes half a dozen at a time, after one of the junta's "death flights." On occasion, they even rained down from helicopters into farmers' fields."

All Argentines were in some way enlisted as witnesses to the erasure of their fellow citizens, yet most people claimed not to know what was going on. (much like Nazi Germany). There is a phrase Argentines use to describe the paradox of wide-eyed knowing and eyes-closed terror that was the dominant state of mind in those years: "We did not know what nobody could deny." (4)

As Canada is now in the throes of its own shock therapy, the need for torture chambers are not necessary.

We have our authoritarian leader in Stephen Harper, who allows no dissent. Witch hunts are now the norm, and while people don't disappear, their careers are ruined or threatened, if they dare to challenge.

The G-20 saw the worst human rights abuses and mass arrests in Canadian history; and police brutality at protests like the one over the Prison Farm closures, saw no age barrier. Those from 14 to 88 were victimized.

We are now part of the Shock Doctrine under the Harper regime, and what is happening in our country is just as shocking to many, as they were in places like Chile and Argentina.

And "the paradox of wide-eyed knowing and eyes-closed terror", was evident, when despite the horrors of the G-20, many Canadians simply shrugged and said "you should have stayed home".

Sources:

1. The Path to Power, By Margaret Thatcher, Harper Collins, 1995, ISBN: 0-06-017270-3, Pg. 583

2. The Commanding Heights: The Battle for the World Economy, By Daniel Yergin and Joseph Stanislaw, Touchstone, 2002, ISBN: 0-684-82975-4, Pg. 242

3. The Shock Doctrine: The Rise of Disaster Capitalism, By Naomi Klein, Vintage Canada, 2007, ISBN: 978-0-676-97801-8, Pg. 63

4. Klein, 2007, Pg. 106-107

The Deficit Cure: Acupuncture or Shock Therapy?

When the neoconservative movement in Canada first appeared on the radar of many journalists, it was tied to the administrations of Margaret Thatcher and Ronald Reagan. Both of these leaders launched aggressive attacks on the welfare state, and left devastation in their paths.

Grant Devine in Saskatchewan, Ralph Klein in Alberta and Mike Harris in Ontario, all sought to experiment with the Thatcher/Reagan theories in their respective provinces.

On the federal scene, the Reform Party had their ideology in check, and were just waiting for their turn.

At the time, Thatcher and Reagan were not on tour, so Canada's neocons were taught strategy by New Zealand politician, Roger Douglas.

He held information seminars, speaking to the Harris caucus in Ontario, with Tony Clement, John Baird and Jim Flaherty in attendance; and Klein's in Alberta, indoctrinating Stockwell Day.

But the most important lecture, when it comes to the future of Canada, was presented to the Reform Party of Preston Manning and Stephen Harper, at their 1991 Assembly.

Douglas was introduced by Preston Manning, the only assembly speaker to be so honoured. And Manning told the delegates: There are three basic reasons why we have invited Sir Roger Douglas to be with us ... and three reasons why Reformers should pay close attention to what he has to say ... Sir Roger is an authority in fiscal reform and has advocated and promoted many of the fiscal reforms ... He is not only a reformer in word, he is a reformer in deed. Sir Roger deregulated the financial sector, phased down agricultural and other subsidies .. phased out import controls and drastically reduced tariffs levels. He instituted a 10% flat rate consumption tax (GST)*, with virtually no exemptions ... (1)

And Roger Douglas's most important message to his followers was "don't blink". Once you start cutting, keep going.

And if you developed a case of blepharospasm, uncontrollable eye blinking, a little acupuncture would fix you right up.

Because what Douglas failed to mention was how his policies affected New Zealand.

Dr. John Warnock, travelled to New Zealand to study the effects of what New Zealanders dubbed 'Rogernomics.' The figures tell a story of devastation - a word used by New Zealand's own agricultural minister to describe the state of agriculture in four years after the 'reforms': A 40 per cent drop in farm income; a 50 per cent drop in the value of farm land; a policy of paying 3,000 farmers incentives of $ 45,000 to leave and the suggestion that another 15,000 (out of 79,000) should follow them. Unemployment, which had been at 4 per cent before Douglas's reforms, jumped to over 12 per cent in just over a year and is still increasing.

"Douglas completely eliminated regional development grants and subsidies to rural services. Says Warnock, 'They had things like subsidized petroleum - regardless of where you were the price was the same - subsidized train service, bus service, airport service. They privatized all these things and the prices immediately skyrocketed.' A massive de-population of the countryside resulted, and approximately 40,000 New Zealanders per year have since left the country for Australia to find work ... (1)

He should have blinked.

Shock Therapy

While Roger Douglas may present us with a little trip down memory lane, Stephen Harper and Jim Flaherty will probably forgo acupuncture for shock therapy.

This is the remedy prescribed by Milton Friedman, and articulated at places like the Fraser Institute. Friedman believed in taking advantage of disasters, like Katrina, but when none presented themselves, they could simply be created.

His most famous induced disaster, was the Chilean experiment.

In 1970, when a socialist, Salvador Allende, was elected president, many of Chile's elite, were not pleased.

Allende, a physician by training, understood the cost that malnutrition imposed upon the poor and set out to alleviate the grinding poverty in which so many Chileans were trapped. He ensured that every Chilean schoolchild had access to at least a half-liter of milk each day, and that their parents had access to jobs and the means to feed and educate their children. Median incomes began to rise dramatically in the first two years of Allende's term.

To pay for these social programs designed to create opportunities for the poor, rich Chileans who had lived all their lives off of rents, dividends and interest and who had never paid a dime in taxes, found themselves paying taxes for the first time and being forced to morally justify their lives of luxurious leisure at the expense of the poor. They didn't like it one bit. And they began to complain to their friends in Washington. (2)

Fortunately for them Washington was already aware of the situation, and with the help of several corporations, engineered a coup to oust Allende and place the murderous Augustus Pinochet in the presidential palace.

Friedman then took over, encouraging Pinochet to implement "shock therapy" on the people of Chile.

Friedman advised Pinochet to impose a rapid-fire transformation of the economy—tax cuts, free trade, privatized services, cuts to social spending and deregulation. Eventually, Chileans even saw their public schools replaced with voucher-funded private ones. It was the most extreme capitalist makeover ever attempted anywhere, and it became known as a "Chicago School" revolution, since so many of Pinochet's economists had studied under Friedman at the University of Chicago. Friedman predicted that the speed, suddenness and scope of the economic shifts would provoke psychological reactions in the public that "facilitate the adjustment." He coined a phrase for this painful tactic: economic "shock treatment." In the decades since, whenever governments have imposed sweeping free-market programs, the all-at-once shock treatment, or "shock therapy," has been the method of choice. (3)

And though Friedman and his Chicago School are still being hailed as heroes by Neoliberals/Neoconservative/Free Marketeers everywhere, his remaking of Chile was an absolute failure.

.. The country's period of steady growth that is held up as proof of its miraculous success, did not begin until the mid-eighties, a full decade after the Chicago Boys implemented shock therapy and well after Pinochet was forced to make a radical course correction.

That's because in 1982, despite its strict adherence to Chicago doctrine, Chile's economy crashed: its debt exploded, it faced hyperinflation once again and unemployment hit 30 percent—ten times higher than it was under Allende. The main cause was that the piranhas, the Enron-style financial houses that the Chicago Boys had freed from all regulation, had bought up the country's assets on borrowed money and run up an enormous debt of $14 billion.

The situation was so unstable that Pinochet was forced to do what Allende had done: he nationalized many of these companies. In the face of the debacle, almost all the Chicago Boys lost their influential government posts. (4)

So despite the fact that both of these experiments in economic reform were catastrophes, we know that it will not change Flaherty's or Harper's ideology.

Canadians will probably be subjected to a little "shock" in the upcoming budget, or if not then, in the not too distant future. The convoluted belief being that if we associate pain with social programs, we will not be too quick to want to reintroduce them (Friedman was a nut), especially if they convince us that they have been replaced with something better.

Poverty being good for the soul.

So slap on the electrodes boys. I'm ready.

Footnotes:

*The Reform Party was conflicted about the GST, with most wanting it scrapped if they came to power. Harper himself convinced them to keep the GST but eliminate any exemptions.

Sources:

1. Preston Manning and the Reform Party, By Murray Dobbin, Goodread Publishing, 1992, ISBN: 0-88780-161-7, pg. 113-114

2. Free Market Fundamentalism: Friedman, Pinochet and the "Chilean Miracle", By Scott Bidstrup

3. The Shock Doctrine: The Rise of Disaster Capitalism, By Naomi Klein, Vintage Canada, 2007, ISBN: 978-0-676-97801-8, Pg. 8

4. Klein, 2007, Pg. 123

Milton Friedman and the Chilean Experiment

A CULTURE OF DEFIANCE: History of the Reform-Conservative Party of Canada

In 1970, Salvador Allende, was elected President of Chile, a progressive nation enjoying the rewards of an intellectual movement. Poets, artists, thinkers, all contributed to the culture of a socialist society.

But Allende made a huge mistake. He had campaigned on the promise of nationalizing his country's natural resources, raising concern with foreign business interests. A concern that would bring about radical and unwelcome changes, initiated by corporate giant International Telephone and Telegraph (ITT).

In the wake of the Allende victory ITT established close contacts with the State Department, the National Security Council, the U.S. Information Agency, the CIA, the Inter-American Development Bank, the Senate Foreign Relations Committee, and other agencies with the purpose of pushing the U.S. to intervene covertly in Chile. Efforts were made to prevent Allende from taking power, which he could do only with the help of the centrist Christian Democrats. The CIA immediately implemented a program of economic destabilization to demonstrate to the Christian Democrats the folly of supporting the inauguration of Allende as president. When that failed, tactics changed. An ITT memo from field operatives in Chile read: "A more realistic hope . . . is that a swiftly deteriorating economy (bank runs, plant bankruptcies, etc.) will touch off a wave of violence resulting in a military Coup." (1)

ITT had already stated that they were "prepared to assist financially in sums up to seven figures." The tactic worked, and the civil unrest caused by the destabilization, resulted in the predicted military coup.

Finally, on September 11, 1973, as President Allende watched the tanks roll in to lay siege to the presidential palace, he made one final radio address, still defiant though clearly beaten:

"I am certain that the seed we planted in the worthy consciousness of thousands and thousands of Chileans cannot be definitively uprooted. They have the strength; they can subjugate us, but they cannot halt social processes by either crime or force. History is ours, and the people make it." (2)

Sadly, he was unaware of the force of a 5' 2" bundle of evil, Milton Friedman, and his disciples at the Chicago School of Economics.

Friedman had been waiting for just such an opportunity to test his free market theories.

Friedman advised Pinochet to impose a rapid-fire transformation of the economy—tax cuts, free trade, privatized services, cuts to social spending and deregulation. Eventually, Chileans even saw their public schools replaced with voucher-funded private ones. It was the most extreme capitalist makeover ever attempted anywhere, and it became known as a "Chicago School" revolution, since so many of Pinochet's economists had studied under Friedman at the University of Chicago. Friedman predicted that the speed, suddenness and scope of the economic shifts would provoke psychological reactions in the public that "facilitate the adjustment." He coined a phrase for this painful tactic: economic "shock treatment." In the decades since, whenever governments have imposed sweeping free-market programs, the all-at-once shock treatment, or "shock therapy," has been the method of choice. (3)

And Pinochet was the perfect authoritarian leader to impose these radical changes. Torture and massacres were the remedy for dissent.

And though fully aware of this, Friedman felt no compassion for the victims. According to Naomi Klein in The Shock Doctrine:

After his meeting with Pinochet, Friedman made some personal notes about the encounter, which he reproduced decades later in his memoirs. He observed that the general "was sympathetically attracted to the idea of a shock treatment but was clearly distressed at the possible temporary unemployment that might be caused."

At this point, Pinochet was already notorious the world over for ordering massacres in football stadiums; that the dictator was "distressed" by the human cost of shock therapy might have given Friedman pause. Instead, he pressed the point in a follow-up letter in which he praised the general's "extremely wise" decisions but urged Pinochet to cut government spending much further, "by 25 per cent within six months ... across-the-board," while simultaneously adopting a package of pro-business policies moving toward "complete free trade." Friedman predicted that the hundreds of thousands of people who would be fired from the public sector would quickly get new jobs in the private sector, soon to be booming thanks to Pinochet's removal of "as many obstacles as possible that now hinder the private market. Friedman assured the general that if he followed his advice, he would be able to take credit for an economic miracle ... he "could end inflation in months" while the unemployment problem would be equally "brief—measured in months—and that subsequent recovery would be rapid." Pinochet would need to act fast and decisively; Friedman emphasized the importance of "shock" repeatedly, using the word three times and underlining that "gradualism is not feasible.""

Friedman was wrong however, and it would be several years before the employment situation improved.

But that was not really his concern. Nor were the 30,000 people killed, in order to implement his plan.

It's interesting how neoconservative disciples, view the Chilean experiment. In her memoirs, Margaret Thatcher acknowledges the "authoritarian" style of Pinochet, but marvelled at how easy it was for the country to return to normal under a free market system. Of course she credits Friedman for the transformation.

Praise is still being given three decades later. But is it earned? Not according to Klein.

The facts behind the "Chilean miracle" remain a matter of intense debate. Pinochet held power for seventeen years, and during that time he changed political direction several times. The country's period of steady growth that is held up as proof of its miraculous success did not begin until the mid-eighties, a full decade after the Chicago Boys implemented shock therapy and well after Pinochet was forced to make a radical course correction.

That's because in 1982, despite its strict adherence to Chicago doctrine, Chile's economy crashed: its debt exploded, it faced hyperinflation once again and unemployment hit 30 percent—ten times higher than it was under Allende. The main cause was that the piranhas, the Enron-style financial houses that the Chicago Boys had freed from all regulation, had bought up the country's assets on borrowed money and run up an enormous debt of $14 billion.

The situation was so unstable that Pinochet was forced to do what Allende had done: he nationalized many of these companies. In the face of the debacle, almost all the Chicago Boys lost their influential government posts. (2)

Today Chile's economy is stable, but the country suffers from very high income inequality. Many Chileans live well below the poverty line, a situation that the government is looking to eradicate.

Salvador Allende died on September 11, 1973, the day the tanks rolled in, and his death was put down to suicide, something his family never accepted. His remains are now to be exhumed and we may finally learn what happened on the fateful day.

However, despite the obvious failure of Friedman's Chilean experiment, others are trying to replicate the disaster, including it would seem, our own government.

We now have an authoritarian in complete control, and our record debt and deficit, presents a perfect situation to begin to implement a bit of "shock therapy".

Relax. It won't hurt a bit.

Sources:

1. The Myth of the Good Corporate Citizen: Canada and Democracy in the Age of Globalization, By Murray Dobbin, James Lorimer & Company, 2003, ISBN: 1-55028-785-0, Pg. 77-79

2. The Shock Doctrine: The Rise of Disaster Capitalism, By Naomi Klein, Vintage Canada, 2007, ISBN: 978-0-676-97801-8, Pg. 123

3. Klein, 2007, Pg. 8