Ayn Rand is my hero, yet another student tells me during office hours. Her writings freed me. They taught me to rely on no one but myself.
As I look at the freshly scrubbed and very young face across my desk, I find myself wondering why Rands popularity among the young continues to grow. Thirty years after her death, her book sales still number in the hundreds of thousands annually having tripled since the 2008 economic meltdown. Among her devotees are highly influential celebrities, such as Brad Pitt and Eva Mendes, and politicos, such as current Speaker of the House Paul Ryan and Republican presidential candidate Ted Cruz.
The core of Rands philosophy which also constitutes the overarching theme of her novels is that unfettered self-interest is good and altruism is destructive. This, she believed, is the ultimate expression of human nature, the guiding principle by which one ought to live ones life. In Capitalism: The Unknown Ideal, Rand put it this way:
Collectivism is the tribal premise of primordial savages who, unable to conceive of individual rights, believed that the tribe is a supreme, omnipotent ruler, that it owns the lives of its members and may sacrifice them whenever it pleases.
By this logic, religious and political controls that hinder individuals from pursuing self-interest should be removed. (It is perhaps worth noting here that the initial sex scene between the protagonists of Rands book The Fountainhead is a rape in which she fought like an animal.)
WATCH: Why do the rich get richer? French economist Piketty takes on inequality in Capital
The fly in the ointment of Rands philosophical objectivism is the plain fact that humans have a tendency to cooperate and to look out for each other, as noted by many anthropologists who study hunter-gatherers. These prosocial tendencies were problematic for Rand, because such behavior obviously mitigates against natural self-interest and therefore should not exist. She resolved this contradiction by claiming that humans are born as tabula rasa, a blank slate, (as many of her time believed) and prosocial tendencies, particularly altruism, are diseases imposed on us by society, insidious lies that cause us to betray biological reality. For example, in her journal entry dated May 9, 1934, Rand mused:
For instance, when discussing the social instinct does it matter whether it had existed in the early savages? Supposing men were born social (and even that is a question) does it mean that they have to remain so? If man started as a social animal isnt all progress and civilization directed toward making him an individual? Isnt that the only possible progress? If men are the highest of animals, isnt man the next step?
The hero of her most popular novel, Atlas Shrugged, personifies this highest of animals: John Galt is a ruthless captain of industry who struggles against stifling government regulations that stand in the way of commerce and profit. In a revolt, he and other captains of industry each close down production of their factories, bringing the world economy to its knees. You need us more than we need you is their message.
To many of Rands readers, a philosophy of supreme self-reliance devoted to the pursuit of supreme self-interest appears to be an idealized version of core American ideals: freedom from tyranny, hard work and individualism. It promises a better world if people are simply allowed to pursue their own self-interest without regard to the impact of their actions on others. After all, others are simply pursuing their own self-interest as well.
So what if people behaved according to Rands philosophy of objectivism? What if we indeed allowed ourselves to be blinded to all but our own self-interest?
Modern economic theory is based on exactly these principles. A rational agent is defined as an individual who is self-interested. A market is a collection of such rational agents, each of whom is also self-interested. Fairness does not enter into it. In a recent Planet Money episode, David Blanchflower, a Dartmouth professor of economics and former member of the Central Bank of England, laughed out loud when one of the hosts asked, Is that fair?
Economics is not about fairness, he said. Im not going there.
Economists alternately find alarming and amusing a large body of results from experimental studies showing that people dont behave according to the tenets of rational choice theory. We are far more cooperative and willing to trust than is predicted by the theory, and we retaliate vehemently when others behave selfishly. In fact, we are willing to pay a penalty for an opportunity to punish people who appear to be breaking implicit rules of fairness in economic transactions.
So what if people behaved according to Rands philosophy of objectivism? What if we indeed allowed ourselves to be blinded to all but our own self-interest?
In 2008, Sears CEO Eddie Lampert decided to restructure the company according to Rands principles.
Lampert broke the company into more than 30 individual units, each with its own management and each measured separately for profit and loss. The idea was to promote competition among the units, which Lampert assumed would lead to higher profits. Instead, this is what happened, as described by Mina Kimes, a reporter for Bloomberg Business:
An outspoken advocate of free-market economics and fan of the novelist Ayn Rand, he created the model because he expected the invisible hand of the market to drive better results. If the companys leaders were told to act selfishly, he argued, they would run their divisions in a rational manner, boosting overall performance.
Instead, the divisions turned against each other and Sears and Kmart, the overarching brands, suffered. Interviews with more than 40 former executives, many of whom sat at the highest levels of the company, paint a picture of a business thats ravaged by infighting as its divisions battle over fewer resources.
A close-up of the debacle was described by Lynn Stuart Parramore in a Salon article from 2013:
It got crazy. Executives started undermining other units because they knew their bonuses were tied to individual unit performance. They began to focus solely on the economic performance of their unit at the expense of the overall Sears brand.One unit, Kenmore, started selling the products of other companies and placed them more prominently than Sears own products. Units competed for ad space in Sears circularsUnits were no longer incentivized to make sacrifices, like offering discounts, to get shoppers into the store.
Sears became a miserable place to work, rife with infighting and screaming matches. Employees, focused solely on making money in their own unit, ceased to have any loyalty to the company or stake in its survival.
We all know the end of the story: Sears share prices fell, and the company appears to be headed toward bankruptcy. The moral of the story, in Parramores words:
What Lampert failed to see is that humans actually have a natural inclination to work for the mutual benefit of an organization. They like to cooperate and collaborate, and they often work more productively when they have shared goals. Take all of that away and you create a company that will destroy itself.
In 2009, Honduras experienced a coup dtat when the Honduran Army ousted President Manuel Zelaya on orders from the Honduran Supreme Court. What followed was succinctly summarized by Honduran attorney Oscar Cruz:
The coup in 2009 unleashed the voracity of the groups with real power in this country. It gave them free reins to take over everything. They started to reform the Constitution and many laws the ZEDE comes in this context and they made the Constitution into a tool for them to get rich.
As part of this process, the Honduran government passed a law in 2013 that created autonomous free-trade zones that are governed by corporations instead of the countries in which they exist. So what was the outcome? Writer Edwin Lyngar described vacationing in Honduras in 2015, an experience that turned him from Ayn Rand supporter to Ayn Rand debunker. In his words:
The greatest examples of libertarianism in action are the hundreds of men, women and children standing alongside the roads all over Honduras.The government wont fix the roads, so these desperate entrepreneurs fill in potholes with shovels of dirt or debris. They then stand next to the filled-in pothole soliciting tips from grateful motorists. That is the wet dream of libertarian private sector innovation.
He described the living conditions this way:
On the mainland, there are two kinds of neighborhoods, slums that seem to go on forever and middle-class neighborhoods where every house is its own citadel.In San Pedro Sula, most houses are surrounded by high stone walls topped with either concertina wire or electric fence at the top. As I strolled past these castle-like fortifications, all I could think about was how great this city would be during a zombie apocalypse.
Without collective effort, large infrastructure projects like road construction and repair languish. A resident pointed out a place for a new airport that could be the biggest in Central America, if only it could get built, but there is no private sector upside.
A trip to a local pizzeria was described this way:
We walked through the gated walls and past a man in casual slacks with a pistol belt slung haphazardly around his waist. Welcome to an Ayn Rand libertarian paradise, where your extra-large pepperoni pizza must also have an armed guard.
This is the inevitable outcome of unbridled self-interest set loose in unregulated markets.
Yet devotees of Ayn Rand still argue that unregulated self-interest is the American way, that government interference stifles individualism and free trade. One wonders whether these same people would champion the idea of removing all umpires and referees from sporting events. What would mixed martial arts or football or rugby be like, one wonders, without those pesky referees constantly getting in the way of competition and self-interest?
READ: Libertarian Charles Murray: The welfare state has denuded our civic culture
Perhaps another way to look at this is to ask why our species of hominid is the only one still in existence on the planet, despite there having been many other hominid species during the course of our own evolution. One explanation is that we were cleverer, more ruthless and more competitive than those who went extinct. But anthropological archaeology tells a different story. Our very survival as a species depended on cooperation, and humans excel at cooperative effort. Rather than keeping knowledge, skills and goods ourselves, early humans exchanged them freely across cultural groups.
When people behave in ways that violate the axioms of rational choice, they are not behaving foolishly. They are giving researchers a glimpse of the prosocial tendencies that made it possible for our species to survive and thrive then and today.
Editors note: This post has been updated to correct a previous statement that Sears went bankrupt. It has been updated to reflect that the retailer appears to be heading towards bankruptcy, as the companys earnings and share prices plummet.
See original here:
Column: This is what happens when you take Ayn Rand seriously
- That Day I Interviewed Ayn Rand - Foundation for Economic Education - March 2nd, 2024 [March 2nd, 2024]
- Ayn Rand's Anthem Was Adapted Into a Graphic Novel, and Its Timing Couldn't Be Better | Maeve Ronan - Foundation for Economic Education - February 16th, 2024 [February 16th, 2024]
- Real World Economics: Ayn Rand and the Grand Canyon - St. Paul Pioneer Press - February 1st, 2024 [February 1st, 2024]
- Tech Entrepreneur Elle Morrill Offers Inspirational Life Advice in ARI Roundtable - New Ideal - February 1st, 2024 [February 1st, 2024]
- America needs to clean up its act | News, Sports, Jobs - Alpena News - August 26th, 2023 [August 26th, 2023]
- How immigration creates a more prosperous world - Learn Liberty - August 26th, 2023 [August 26th, 2023]
- Yad Vashem tour by Israel Heritage Foundation visibly moves ... - JNS.org - August 26th, 2023 [August 26th, 2023]
- Anna May Wong and Chinatown Noir: 4 Essential Films - CrimeReads - August 26th, 2023 [August 26th, 2023]
- Ditch your business books and pick up these three novels for a fresh ... - ETHRWorld Middle East - August 26th, 2023 [August 26th, 2023]
- Your Guide to the Rory Gilmore Reading Challenge - The Everygirl - August 26th, 2023 [August 26th, 2023]
- BioShock 4 May Have an Edge Compared to Other Modern FPS ... - GameRant - June 2nd, 2023 [June 2nd, 2023]
- LETTER: When will Republicans wake up? - The Pantagraph - June 2nd, 2023 [June 2nd, 2023]
- 'The Marvelous Mrs. Maisel' Celebrated Selfishness as a Virtue - Reason - June 2nd, 2023 [June 2nd, 2023]
- Blaming the Victim - CounterPunch.org - CounterPunch - June 2nd, 2023 [June 2nd, 2023]
- Coalition of AI leaders sees 'societal-scale risks' from the ... - SiliconANGLE News - June 2nd, 2023 [June 2nd, 2023]
- Fall 2023 Adult Announcements: Literary Fiction - Publishers Weekly - June 2nd, 2023 [June 2nd, 2023]
- 20 Box Office Bombs That Got Sequels - MovieWeb - June 2nd, 2023 [June 2nd, 2023]
- Religious Skeptics Should Question Their Moral Theology - New Ideal - May 18th, 2023 [May 18th, 2023]
- What Ayn Rand Understood about Romantic Love That so Many Fail ... - Foundation for Economic Education - May 18th, 2023 [May 18th, 2023]
- 1923 Emmy Submissions Revealed for Harrison Ford, Helen Mirren and More (EXCLUSIVE) - Variety - May 18th, 2023 [May 18th, 2023]
- How Ayn Rand, Emerson and Thoreau perverted the American Dream - April 10th, 2023 [April 10th, 2023]
- Ayn Rand - Books, Quotes & Philosophy - Biography - February 18th, 2023 [February 18th, 2023]
- EDITORIAL: Remembering the great Ayn Rand, a champion of capitalism and ... - February 5th, 2023 [February 5th, 2023]
- The curious cult of the friend of fascism | Anthony Daniels - The Critic - October 17th, 2022 [October 17th, 2022]
- Ocean City 'Jeopardy!' champion wins almost $60,000 in 7th consecutive win, over $220,000 total - Press of Atlantic City - October 17th, 2022 [October 17th, 2022]
- Will Amanda Seyfried (The Dropout) ride her Emmy high all the way to a SAG Award win? - Gold Derby - October 6th, 2022 [October 6th, 2022]
- Books review: What to read in October - Reader's Digest - October 6th, 2022 [October 6th, 2022]
- Democrats dig the graves of freedom and prosperity - Washington Times - October 6th, 2022 [October 6th, 2022]
- Baseball and Yom Kippur: Is there a Koufax curse? - Forward - October 6th, 2022 [October 6th, 2022]
- The limits of Justice Ketanji Brown Jacksons power - Fortune - October 6th, 2022 [October 6th, 2022]
- Race Across The World and Louis Theroux Interviews among new BBC Factual and Arts slate - Royal Television Society | - October 6th, 2022 [October 6th, 2022]
- Fool Britannia: sloppy Tory treatise a hint of horrible things to come - Crikey - October 6th, 2022 [October 6th, 2022]
- Day one at the Tory conference: Industry cries out for stability but U-turns and uncertainty continue - Building - October 6th, 2022 [October 6th, 2022]
- Former Capitol Police Chief Steven A. Sund Set To Publish A New Book About The Attack On January 6th With Explosive Never-Before-Revealed Information... - September 27th, 2022 [September 27th, 2022]
- Right place at the right time: freeports model gives fillip to St Helens regeneration scheme - The Guardian - September 27th, 2022 [September 27th, 2022]
- Reflections from London on the queen's life and death - Baptist News Global - September 27th, 2022 [September 27th, 2022]
- Editorial: NH voters, beware of radical threat on ballot - Valley News - September 11th, 2022 [September 11th, 2022]
- 10 Wednesday AM Reads - The Big Picture - Barry Ritholtz - September 11th, 2022 [September 11th, 2022]
- Opinion: Renewables are great and all, but who'll pay when they fail? - Houston Chronicle - September 11th, 2022 [September 11th, 2022]
- The Simpsons' Playdate With Destiny Short Was A Product Of Serendipity - /Film - August 27th, 2022 [August 27th, 2022]
- Filthy Animals Pries Open The Violent, Animalistic Notions In Human Relationships - Gaysi - August 27th, 2022 [August 27th, 2022]
- How Isabel Paterson Helped Ayn Rand Find Atlantis - The Objective Standard - August 25th, 2022 [August 25th, 2022]
- Where Is 'The Anarchists' Star Jason Henza Today? - Newsweek - August 25th, 2022 [August 25th, 2022]
- Objectivism Q&A with Ben Bayer and Dan Schwartz - New Ideal - August 2nd, 2022 [August 2nd, 2022]
- Book Banning Is Wrong Unless It Gets Me Out of Helping My Kid With His Homework - The Hard Times - August 2nd, 2022 [August 2nd, 2022]
- THE TEACHER'S DESK: Breaking the Rules | Opinion | thetimestribune.com - Times Tribune of Corbin - July 21st, 2022 [July 21st, 2022]
- If Big Ten didnt just add lucrative programs like USC but trimmed stragglers, whod get the boot? | Jones - PennLive - July 21st, 2022 [July 21st, 2022]
- A high point of our time in southern Alberta, Canada - Patheos - July 21st, 2022 [July 21st, 2022]
- The Banality of Putin and Xi - New Ideal - June 30th, 2022 [June 30th, 2022]
- 4 Pillars of The Illusion | C. Don Jones - Patheos - June 30th, 2022 [June 30th, 2022]
- The Philosophic Case for the Absolute Right to Abortion - New Ideal - June 26th, 2022 [June 26th, 2022]
- R2AK: Will monohulls sweep the podium? - Scuttlebutt Sailing News - June 26th, 2022 [June 26th, 2022]
- Bill Maher Addressed an Eventful Political Week on Real Time - InsideHook - June 26th, 2022 [June 26th, 2022]
- Ayn Rand v Donald Trump? - Daily Kos - June 22nd, 2022 [June 22nd, 2022]
- Letter: The rules of life are very simple - Detroit Lakes Tribune - June 22nd, 2022 [June 22nd, 2022]
- The Banality of Putin and Xi | Yaron Brook and Elan Journo - IAI - June 22nd, 2022 [June 22nd, 2022]
- American culture is destroying itself, and the planet, says leading activist Bill McKibben - Yahoo Philippines News - June 22nd, 2022 [June 22nd, 2022]
- Is Discussing the Consequences of Anti-Vaccine Disinformation Fun? - Science Based Medicine - June 3rd, 2022 [June 3rd, 2022]
- O'Donnell: Will the NBA's new red-light camera calls ruin The Finals for ABC/ESPN? - Daily Herald - June 1st, 2022 [June 1st, 2022]
- The Strange and Terrifying Ideas of Neoreactionaries Current Affairs - Current Affairs - June 1st, 2022 [June 1st, 2022]
- Martin Scorsese, Objectivism, Relativism, and How We Read Cinema - No Film School - June 1st, 2022 [June 1st, 2022]
- Ayn Rand, Objectivists, and COVID - Science Based Medicine - May 25th, 2022 [May 25th, 2022]
- Ayn Rand vs. Classical Economists - The Objective Standard - May 25th, 2022 [May 25th, 2022]
- Opinion | Demolishing the Demonic Plans of Our Enemy, and Can We Get An Amen - Common Dreams - May 20th, 2022 [May 20th, 2022]
- Ayn Rand's We the Living: Back on the Silver Screenand Better Than Ever - The Objective Standard - May 17th, 2022 [May 17th, 2022]
- Congress revival: Time to break free of family - The Hans India - May 17th, 2022 [May 17th, 2022]
- The Financial Dark Ages Are Ending Thanks To Bitcoin - Bitcoin Magazine - May 17th, 2022 [May 17th, 2022]
- Marital rape: How understanding context rather than just focusing on consent will help resolve the issue - Firstpost - May 13th, 2022 [May 13th, 2022]
- Deadly Class Season 2: Is a Release Date or Rumor in the Offing on Netflix? - Federal Regulations Advisor - May 13th, 2022 [May 13th, 2022]
- The Daily Cartoon and Live Briefing: Monday, May 9, 2022 - FlaglerLive.com - May 13th, 2022 [May 13th, 2022]
- Victory at San Jacinto liberated the individual | Opinion | jacksonvilleprogress.com - Jacksonville Daily Progress - April 20th, 2022 [April 20th, 2022]
- RUSH's GEDDY LEE Says NEIL PEART 'Didn't Want Anyone To Know' About His Illness: 'He Wanted To Keep It In The House' - BLABBERMOUTH.NET - April 20th, 2022 [April 20th, 2022]
- The Alternative Meat Industry Wants Solar Power Style Mandates And Subsidies - Science 2.0 - April 20th, 2022 [April 20th, 2022]
- diSConnected: Is Ayn Rand or Mother Teresa better for protecting South Carolinians with disabilities? - South Carolina Public Radio - April 15th, 2022 [April 15th, 2022]
- Did the John Birch Society Win in the End? - The Bulwark - April 15th, 2022 [April 15th, 2022]
- Boris Johnsons Covid bravado insults the NHS and the public - The Guardian - April 15th, 2022 [April 15th, 2022]
- Science Fiction in a Time of Crisis - Filmmaker Magazine - April 15th, 2022 [April 15th, 2022]
- The criticism facing Rishi Sunak has nothing to do with race, and all to do with greed - iNews - April 15th, 2022 [April 15th, 2022]
- Zack Snyder's Star Wars-Themed Movie Recruits The Princess Bride Star - Giant Freakin Robot - April 11th, 2022 [April 11th, 2022]
- Debate sparked after University of Bristol students try to 'cancel' controversial speaker - Bristol Live - April 11th, 2022 [April 11th, 2022]