This is philospher David Kelley in the Wall Street Journal. I think BloodhoundBlog presents a nice reflection of this argument, a joyous, fearless, unapologetic pursuit of new ideas.
Economists have known for a long time that profits are an external measure of the value created by business enterprise. Rand portrayed the process of creating value from the inside, in the heroes’ vision and courage, their rational exuberance in meeting the challenges of production. Her point was stated by one of the minor characters of “Atlas,” a musical composer: “Whether it’s a symphony or a coal mine, all work is an act of creating and comes from the same source: from an inviolate capacity to see through one’s own eyes. . . That shining vision which they talk about as belonging to the authors of symphonies and novels — what do they think is the driving faculty of men who discovered how to use oil, how to run a mine, how to build an electric motor?”
As for the charge, from egalitarian left and religious right alike, that the profit motive is selfish, Rand agreed. She was notorious as the advocate of “the virtue of selfishness,” as she titled a later work. Her moral defense of the pursuit of self-interest, and her critique of self-sacrifice as a moral standard, is at the heart of the novel. At the same time, she provides a scathing portrait of what she calls “the aristocracy of pull”: businessmen who scheme, lie and bribe to win favors from government.
Economists have also known for a long time that trade is a positive sum game, yet most defenders of capitalism still wrestle with the “paradox” posed in the 18th century by Adam Ferguson and Adam Smith: how private vice can produce public good, how the pursuit of self-interest yields benefits for all. Rand cut that Gordian knot in the novel by denying that the pursuit of self-interest is a vice. Precisely because trade is not a zero-sum game, Rand challenges the age-old moral view that one must be either a giver or a taker.
The central action of “Atlas” is the strike of the producers, their withdrawal from a society that depends on them to sustain itself and yet denounces them as morally inferior. Very well, says their leader, John Galt, we will not burden you further with what you see as our immoral and exploitative actions. The strike is of course a literary device; Rand herself described it as “a fantastic premise.” But it has a real and vital implication.
While it is true enough that free production and exchange serve “the public interest” (if that phrase has any real meaning), Rand argues that capitalism cannot be defended primarily on that ground. Capitalism is inherently a system of individualism, a system that regards every individual as an end in himself. That includes the right to live for himself, a right that does not depend on benefits to others, not even the mutual benefits that occur in trade.
This is the lesson that most people in business have yet to learn from “Atlas,” no matter how much they may love its portrayal of the passion and the glory possible in business enterprise. At a crucial point in the novel, the industrialist Hank Rearden is on trial for violating an arbitrary economic regulation. Instead of apologizing for his pursuit of profit or seeking mercy on the basis of philanthropy, he says, “I work for nothing but my own profit — which I make by selling a product they need to men who are willing and able to buy it. I do not produce it for their benefit at the expense of mine, and they do not buy it for my benefit at the expense of theirs; I do not sacrifice my interests to them nor do they sacrifice theirs to me; we deal as equals by mutual consent to mutual advantage — and I am proud of every penny that I have earned in this manner…”
We will know the lesson of “Atlas Shrugged” has been learned when business people, facing accusers in Congress or the media, stand up like Rearden for their right to produce and trade freely, when they take pride in their profits and stop apologizing for creating wealth.
Technorati Tags: real estate, real estate marketing
Jane says:
Well, here’s to the pursuit of new ideas: in real estate and otherwise.
October 11, 2007 — 5:21 am
Daniel Rothamel says:
Bravo!
50 Years of Atlas Shrugged is an event to be celebrated, indeed. I discovered Ayn Rand’s work in college. I wish I could have said it was as a result of my professors, but it was more in spite of them.
Most people find her work too long or dense. I tell people to read “Anthem” if they read nothing else. Plus, you can now read “Anthem” for free on the internet.
October 11, 2007 — 7:33 am
Chuchundra says:
I don’t find her work very dense. Atlas Shrugged is certainly long, but it’s insubstantial. I might compare to a very drawn out and overly talky romance novel.
October 11, 2007 — 3:24 pm
Jeff Brown says:
One of the principles I permanently added to my behavioral code, came directly from reading Ayn Rand – especially Atlas Shrugged.
Fools are to be educated when possible, ignored when harmless, and crushed when dangerous.
October 11, 2007 — 11:46 pm
Leigh Brown says:
I discovered Ayn Rand in 8th grade, and started understanding it when I hit the liberal world of undergraduate study. I read it again about once a year, and each passing year makes me wish more that a strike of the minds would happen today.
Especially in light of the Nobel Prize committee giving Al Gore a prize for his ‘work’.
October 12, 2007 — 5:50 pm