Ayn rand what is capitalism essay




















In Capitalism , Rand sets out to remedy that. Pure capitalism, she concludes, has never existed: but in the countries that approached it, with America in the second half of the nineteenth century leading the way, the individual was able to flourish. But what are rights? What rights do individuals have?

And why is this the only proper function of government? Rand addresses these and many other misconceptions about rights, concluding that only a proper understanding of rights can save capitalism. One of the main ways in which opponents smear capitalism is by ascribing to it disasters created by government intervention. By identifying America as a mixed economy, Rand implies that we must ask of any problem: What part of the mixture created it?

The free element or the controlled element? We cannot immediately leap from the fact that there is a problem to the conclusion that it is caused by capitalism. Moral Objectivism holds that there are objective, universal moral principles that are valid for all people. Objectivism, philosophical system identified with the thought of the 20th-century Russian-born American writer Ayn Rand and popularized mainly through her commercially successful novels The Fountainhead and Atlas Shrugged Rand and her husband moved permanently to New York City in , where she became involved with, and was influenced by, the circle of mostly New-York-based intellectuals involved in the revival of classical liberalism, such as the economic journalist Henry Hazlitt, the Austrian economist Ludwig von Mises, and the ….

The arrival of a letter from cousins in Chicago gave her an opportunity to leave the country on the pretext of gaining expertise that she could apply in the Soviet film industry. Upon her arrival in the United States in , she changed her name to Ayn Rand.

Roark is now her husband the male and female leads have fittingly gotten married , and the building is the skyscraper to end all skyscrapers. It is the best skyscraper ever. So why is Ayn Rand and her most famous work, Atlas Shrugged, so popular? Begin typing your search term above and press enter to search.

Press ESC to cancel. Ben Davis April 30, According to Ayn Rand, there are basically three rights that human beings are entitled to. Why can't anything be done about presidential violations of the Constitution?

Has there been a philosophical change regarding yesterday's presumption of liberty and rights and today's presumption of permissions? The man at the bottom who, left to himself, would starve in his hopeless ineptitude, contributes nothing to those above him, but receives the bonus of all of their brains. Atlas Shrugged. But what needs special emphasis is the fact that this progress was achieved by non-sacrificial means.

Progress can come only out of individual surplus , i. In a capitalist society, where such men are free to function and to take their own risks, progress is not a matter of sacrificing to some distant future, it is part of the living present, it is the normal and natural, it is achieved as and while men live — and enjoy — their lives.

Now consider the alternative — the tribal society, where all men throw their efforts, values, ambitions, and goals into a tribal pool or common pot, then wait hungrily at its rim, while the leader of a clique of cooks stirs it with a bayonet in one hand and a blank check on all their lives in the other.

The most consistent example of such a system is the Union of Soviet Socialist Republics. Today, Soviet Russia is still unable to feed her people — while the rulers scramble to copy, borrow, or steal the technological achievements of the West.

Industrialization is not a static goal; it is a dynamic process with a rapid rate of obsolescence. So the wretched serfs of a planned tribal economy, who starved while waiting for electric generators and tractors, are now starving while waiting for atomic power and interplanetary travel.

They gave the people better jobs, higher wages, and cheaper goods with every new machine they invented, with every scientific discovery or technological advance — and thus the whole country was moving forward and profiting, not suffering, every step of the way.

It is this right — not its consequences — that represents the moral justification of capitalism. But this right is incompatible with the intrinsic or the subjectivist theory of values, with the altruist morality and the tribal premise.

To hold that view in an industrial society — where individual achievements are a matter of public record — is so crass an evasion that even to give it the benefit of the doubt is an obscenity.

He knows that ability or the lack of it whether the lack is actual or volitional makes a difference of life-or-death in any productive process. Mistakes of this size are not made innocently. When great industrialists made fortunes on a free market i. Observe how seldom and how inadequately the issue of human intelligence is discussed in the writings of the tribal-statist-altruist theoreticians. It is often asked: Why was capitalism destroyed in spite of its incomparably beneficent record?

It was the last and theoretically incomplete product of an Aristotelian influence. As a resurgent tide of mysticism engulfed philosophy in the nineteenth century, capitalism was left in an intellectual vacuum, its lifeline cut. Neither its moral nature nor even its political principles had ever been fully understood or defined. Its alleged defenders regarded it as compatible with government controls i. Thus, what existed in practice, in the nineteenth century, was not pure capitalism, but variously mixed economies.

Since controls necessitate and breed further controls, it was the statist element of the mixtures that wrecked them; it was the free, capitalist element that took the blame.

Capitalism could not survive in a culture dominated by mysticism and altruism, by the soul-body dichotomy and the tribal premise. No social system and no human institution or activity of any kind can survive without a moral base. On the basis of the altruist morality, capitalism had to be — and was — damned from the start.

Few observers are inclined to find fault with capitalism as an engine of production. Criticism usually proceeds either from moral or cultural disapproval of certain features of the capitalist system, or from the short-run vicissitudes crises and depressions with which long-run improvement is interspersed.

The article does not tell us explicitly, but gives one eloquent indication:. Moreover it was not only policy but the philosophy of national and individual life, the scheme of cultural values, that bore that stamp. At the end of the middle ages western Europe stood about where many underdeveloped countries stand in the 20th century.

Some such notion underlies every theory of a planned economy. The market theory of resource allocation within the private sector is the central theme of classical economics.

The criterion for allocation between the public and private sectors is formally the same as in any other resource allocation, namely that the community should receive equal satisfaction from a marginal increment of resources used in the public and private spheres. Many economists have asserted that there is substantial, perhaps overwhelming, evidence that total welfare in capitalist United States, for example, would be increased by a reallocation of resources to the public sector — more schoolrooms and fewer shopping centers, more public libraries and fewer automobiles, more hospitals and fewer bowling alleys.

This means that some men must toil all their lives without adequate transportation automobiles , without an adequate number of places to buy the goods they need shopping centers , without the pleasures of relaxation bowling alleys — in order that other men may be provided with schools, libraries, and hospitals. Capitalism has a bias against the public sector for two reasons.

First, all products and income accrue [? Public needs are met only by sufferance of consumers in their role as taxpayers [what about producers? That people know better than governments what to do with their income is a notion more appealing than the contrary one, that people get more for their tax money than for other types of spending. By whose judgment? Second, the pressure of private business to sell leads to the formidable array of devices of modern salesmanship which influence consumer choice and bias consumer values toward private consumption.

A comparison of resource allocation to the public and private sectors under capitalism and under socialist collectivism is illuminating. Private consumption is restricted to the claims that are permitted [by whom? In the Soviet Union teachers are plentiful, but automobiles are scarce, whereas the opposite condition prevails in the United States.

Predictions concerning the survival of capitalism are, in part, a matter of definition. One sees everywhere in capitalist countries a shifting of economic activity from the private to the public sphere. At the same time [after World War II] private consumption appeared destined to increase in communist countries.

Yet significant differences in the economic structures still existed. It seemed reasonable to assume that the society which invested more in people would advance more rapidly and inherit the future. In this important respect capitalism, in the eyes of some economists, labours under a fundamental but not inescapable disadvantage in competition with collectivism.

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