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“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 Rand’s 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 Rand’s 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 one’s 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 Rand’s book “The Fountainhead” is a rape in which “she fought like an animal.”)
The fly in the ointment of Rand’s 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 — isn’t all progress and civilization directed toward making him an individual? Isn’t that the only possible progress? If men are the highest of animals, isn’t 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 Rand’s 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
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. “I’m not going there.”
Economists alternately find alarming and amusing a large body of results from experimental studies showing that people don’t 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 Rand’s philosophy of “objectivism”? What if we indeed allowed ourselves to be blinded to all but our own self-interest?
An example from industry In 2008, Sears CEO Eddie Lampert decided to restructure the company according to Rand’s 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 com...
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