Thomas Frank: To Galt’s Gulch They Go

Over the boom and through the bust . . .

There was a time when Atlas would frown and the world of nations would tremble. He was as mighty as Zeus and as petulant as a teenager. His wrath was irresistible, and he was easily provoked. Badmouth him and he might just drop his burden and walk away. Elect someone he didn’t approve of and he’d put a lightning bolt up your ass.

Chile learned the hard way about minding the feelings of the business-class god. In 1970 that country selected as president one Salvador Allende, a socialist of the old school who quickly set about nationalizing banks, telecom concerns, and so on. American companies naturally feared these developments and laid plans to push the country down a different path. They would withdraw investments, executives mused; they would halt purchases of Chilean goods; and they would persuade others to do the same. President Richard Nixon, who was clearly thinking along the same lines, told his CIA director to “make the economy scream.”