I have the impression that he conflates the Chicago School of economics with Austrian Economics. Austrian school was an influence, but more on market incentives, less state and esp. less taxes. whilst the Chicago school took it to the extremes explained in the post.

Hayek was a crazy radical ("its all the socialists fault") , much more than Friedman ("it's all the cartels fault"). But Austrian Economics should not be conflated with Hayek only, it mostly refers to the pre-modern Laissez Faire Habsburg states, and not the neoclassical coperatism and neoliberalism.