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| What Really Goes On In Washington |
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| Limiting Politicians |
| Democracy vs Freedom |
| Man's Rights |
| The Moral Foundation of a Free Society |
| FOUNDATION of a FREE SOCIETY |
| Good Govt Protects Individual Rights |
| Property and Government |
| Freedom, Individual Rights, Capitalism |
| Bankruptcy of a Mixed Economy |
| FREEDOM and GOVERNMENT |
| Land of Liberty - Society and Government |
| Rewards of Economic Freedom |
| Separation of Economics and State |
| Flat Tax vs Sales Tax |
| Library of Liberty |
| Common Sense Laws |
| What's Wrong With Conservatives |
| FREE MARKETS and LIBERTY |
| The Law and Plunder |
| Politicians, Plunder, Wasteful Spending |
| Constitution and Progressives |
| Learning From Walter Williams |
| POLITICAL PHILOSOPHY -ayn rand |
| Capitalism Center |
| Principles of a Free Society vs The Road to Socialism |
| Government, Capitalism, Welfare |
| Income Inequality - World Poverty |
| Free People Are Not Equal and Equal People Are Not Free |
| Collectivism-Statism-Socialism-Communism |
| FREE TRADE |
| Bloody Politics - Why Socialism Failed |
| Vision of a Free Society |
| Proper Government |
| Foreign Policy |
| Government Spending - Global Capitalism |
| Collectivism vs Individualism |
| Taxes Can Destroy |
| Capitalism and Selfishness |
| Man-Government-Liberty-Tyranny |
| The Basic Issue--Mixed Economy--Seven Principles |
| Individual Rights |
| Life , Liberty , Property |
| Politicians and the Economy |
| Rights and Limited Government |
| Good Sites to Visit |
| Vices and Crimes - A Better Philosophy |
| Immigration |
| Constitutional Primer #7 - Property Rights |
| Right to Own Guns |
| Majority Limited and Pursuit of Happiness |
| POLITICS and FREEDOM |
| The American Revolution - Classical Liberalism |
| Politics and Plunder - Welfare and Charity |
| What Is Money - Seperating Money and State |
| Separating School and State |
| POLITICS - PART 2 |
| Taxes and Property |
| The Anatomy of the State |
| American Government Idea's |
| Good Quotes |
| ABORTION , Questions and Answers |
| Learn Economics Here |
| Three Youngsters Drown |
| INCOME for LIFE |
| OUR LORD'S PROPHECY PREDICTED AND FULFILLED |
| JESUS CAME BACK |
| FUTURISM, FIGURATIVE PRETERISM and LITERAL PRETERISM by W. Hibbard |
| WERE THE APOSTLES FALSE PROPHETS? by M. Fenemore |
| Lee's Bio |
| GUESTBOOK & LINKS |
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What makes a society free? What does it mean for an individual to be free—free to pursue his rights to life, liberty,
property and the pursuit of happiness? Just how free are we in the “land of the free and the home of the brave”?
And most importantly, what must we now do to achieve the type of free society that our Founding Fathers envisioned? What did
they miss that we must now fight for?
The State is parasitic on social cooperation. Predators seize the chance to grab for themselves what others have peacefully
produced. At first, predatory raids are sporadic; but intelligent predators soon realize that they can entrench their theft
on a permanent basis and the State is born.
Taxation is far from the only evil that the predatory State imposes on its victims. War is among the most frequent activities
of the State. If the State exists for predation, will it not be natural for it to extend its dominion in order to increase
what it can extract? Other States will of course not readily surrender their favored position and armed conflict almost always
ensues.
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Q&A with Ayn Rand
- What is government and what is its proper purpose?
-
A government is an institution that holds the exclusive power to enforce certain rules of social conduct in a given geographical
area.
The only proper purpose of a government is to protect man’s rights, which means: to protect him from physical violence.
A proper government is only a policeman, acting as an agent of man’s self-defense, and, as such, may resort to force
only against those who start the use of force. The only proper functions of a government are: the police, to protect you from
criminals; the army, to protect you from foreign invaders; and the courts, to protect your property and contracts from breach
or fraud by others, to settle disputes by rational rules, according to objective law. But a government that initiates the
employment of force against men who had forced no one, the employment of armed compulsion against disarmed victims, is a nightmare
infernal machine designed to annihilate morality: such a government reverses its only moral purpose and switches from the
role of protector to the role of man’s deadliest enemy, from the role of policeman to the role of a criminal vested
with the right to the wielding of violence against victims deprived of the right of self-defense. Such a government substitutes
for morality the following rule of social conduct: you may do whatever you please to your neighbor, provided your gang is
bigger than his.
“This is John Galt Speaking,” For the New Intellectual
- What is capitalism?
-
Capitalism is a social system based on the recognition of individual rights, including property rights, in which all
property is privately owned.
The recognition of individual rights entails the banishment of physical force from human relationships: basically, rights
can be violated only by means of force. In a capitalist society, no man or group may initiate the use of physical
force against others. The only function of the government, in such a society, is the task of protecting man’s rights,
i.e., the task of protecting him from physical force; the government acts as the agent of man’s right of self-defense,
and may use force only in retaliation and only against those who initiate its use; thus the government is the means of placing
the retaliatory use of force under objective control.
When I say “capitalism,” I mean a full, pure, uncontrolled, unregulated laissez-faire capitalism—with
a separation of state and economics, in the same way and for the same reasons as the separation of state and church.
“The Objectivist Ethics,” The Virtue of Selfishness
- What is a mixed economy and why is it inherently destructive?
-
A mixed economy is a mixture of freedom and controls—with no principles, rules, or theories to define either. Since
the introduction of controls necessitates and leads to further controls, it is an unstable, explosive mixture which, ultimately,
has to repeal the controls or collapse into dictatorship. A mixed economy has no principles to define its policies, its goals,
its laws—no principles to limit the power of its government. The only principle of a mixed economy—which,
necessarily, has to remain unnamed and unacknowledged—is that no one’s interests are safe, everyone’s interests
are on a public auction block, and anything goes for anyone who can get away with it. Such a system—or, more precisely,
anti-system—breaks up a country into an ever-growing number of enemy camps, into economic groups fighting one another
for self preservation in an indeterminate mixture of defense and offense, as the nature of such a jungle
demands. While, politically, a mixed economy preserves the semblance of an organized society with a semblance of
law and order, economically it is the equivalent of the chaos that had ruled China for centuries: a chaos of robber
gangs looting—and draining—the productive elements of the country.
A “mixed economy” is a society in the process of committing suicide.
What is the purpose of law?
[A]ll laws must be based on individual rights and aimed at their protection.
Objective laws are laws that confine government to its one legitimate function: protecting individual rights.
Laws must be objective in both form and substance. In form, the law must allow each individual to know, before taking any
action, what conduct is illegal, why it is forbidden, and what will be the penalty for violation. In substance, the law must
forbid only such private conduct as violates the individual rights of others. Laws against murder, for example, satisfy both
requirements.
What are rights?
A “right” is a moral principle defining and sanctioning a man’s freedom of action in a social context.
There is only one fundamental right (all the others are its consequences or corollaries): a man’s right to
his own life. Life is a process of self-sustaining and self-generated action; the right to life means the right to engage
in self-sustaining and self-generated action—which means: the freedom to take all the actions required by the nature
of a rational being for the support, the furtherance, the fulfillment and the enjoyment of his own life. (Such is the meaning
of the right to life, liberty and the pursuit of happiness.)
- Can the rights of one individual conflict with those of another?
-
Since Man has inalienable individual rights, this means that the same rights are held, individually, by every man, by all
men, at all times. Therefore, the rights of one man cannot and must not violate the rights of another.
For instance: a man has the right to live, but he has no right to take the life of another. He has the right to be free,
but no right to enslave another. He has the right to choose his own happiness, but no right to decide that his happiness lies
in the misery (or murder or robbery or enslavement) of another. The very right upon which he acts defines the same right of
another man, and serves as a guide to tell him what he may or may not do.
-
The right to life means that a man has the right to support his life by his own work (on any economic level, as high as
his ability will carry him); it does not mean that others must provide him with the necessities of life.
The right to property means that a man has the right to take the economic actions necessary to earn property, to use it
and to dispose of it; it does not mean that others must provide him with property.
- What principles govern human interaction in the free market?
-
In a free economy, where no man or group of men can use physical coercion against anyone, economic power can be achieved
only by voluntary means: by the voluntary choice and agreement of all those who participate in the process of production
and trade. In a free market, all prices, wages, and profits are determined—not by the arbitrary whim of the rich or
of the poor, not by anyone’s “greed” or by anyone’s need—but by the law of supply and demand.
The mechanism of a free market reflects and sums up all the economic choices and decisions made by all the participants. Men
trade their goods or services by mutual consent to mutual advantage, according to their own independent, uncoerced judgment.
A man can grow rich only if he is able to offer better values—better products or services, at a lower price—than
others are able to offer.
Wealth, in a free market, is achieved by a free, general, “democratic” vote—by the sales and the purchases
of every individual who takes part in the economic life of the country. Whenever you buy one product rather than another,
you are voting for the success of some manufacturer. And, in this type of voting, every man votes only on those matters which
he is qualified to judge: on his own preferences, interests, and needs. No one has the power to decide for others or to substitute
his judgment for theirs; no one has the power to appoint himself “the voice of the public” and to leave
the public voiceless and disfranchised.
- What is the purpose of education?
-
The only purpose of education is to teach a student how to live his life—by developing his mind and equipping
him to deal with reality. The training he needs is theoretical, i.e., conceptual. He has to be taught to think, to
understand, to integrate, to prove. He has to be taught the essentials of the knowledge discovered in the past—and he
has to be equipped to acquire further knowledge by his own effort.
- Is there a right to education?
-
Jobs, food, clothing, recreation , homes, medical care, education, etc., do not grow in nature. These are man-made values—goods
and services produced by men. Who is to provide them?
If some men are entitled by right to the products of the work of others, it means that those others are deprived
of rights and condemned to slave labor.
Any alleged “right” of one man, which necessitates the violation of the rights of another, is not and cannot
be a right.
- Should the government provide scholarships and grants to students and researchers?
-
The fundamental evil of government grants is the fact that men are forced to pay for the support of ideas diametrically
opposed to their own. This is a profound violation of an individual’s integrity and conscience. It is viciously wrong
to take the money of rational men for the support of B. F. Skinner—or vice versa. The Constitution forbids a governmental
establishment of religion, properly regarding it as a violation of individual rights. Since a man’s beliefs are protected
from the intrusion of force, the same principle should protect his reasoned convictions and forbid governmental establishments
in the field of thought.
-
Any influence by the state over education corrupts its goals, and therefore the ability of its graduates to think and reason.
Only a full separation of education and state allows for parents to choose how best to equip their children to function in
the world. Anything less is a violation of the parents’, and child’s, rights.
-
America's Individualist Tradition
America is the quintessential individualist country. For our Founders, the purpose of government was to protect the life,
liberty, and property of each individual and to otherwise leave us alone. For the first century and a half of our history
the federal government remained relatively small and state and local governments provided only basic services, principally
police protection and law courts.
The story of America has been one of millions of immigrants coming to these shores. What attracted them? Immigrants sought
to escape the poverty and tyranny of their home countries, to improve their own economic conditions, to raise their own families,
to start their own businesses, to farm their own land, to live according to their own religion or other beliefs, to enjoy
their own lives.
Immigrants coming to America manifested the moral characteristics of all true individualists. Our ancestors wanted the
best for themselves. They took the initiative needed to achieve their goals. They realized that nothing in life is guaranteed
and that to achieve those goals they would need to take risks in a new country. Immigrants understood the need to think, to
use their minds and their famed Yankee ingenuity. Alexis de Tocqueville in the 1830s understood the independent thinking of
Americans; he found "that in most of the operations of the mind each American appeals only to the individual effort of his
own understanding." In other words, we think for ourselves.
Tocqueville described individual Americans in the new free country as "intoxicated with their new power. They entertain
a presumptuous confidence in their own strength." These rugged individualists looked first to self but were hardly misanthropes,
associating with others of their own choosing. Again from Tocqueville: "Individualism...disposes each member of the community
to sever himself from the mass of his fellows and to draw apart with his family and his friends, so that after he has thus
formed a little circle of his own, he willingly leaves society at large to itself." Even when helping their neighbors, Americans
"are fond of explaining almost all actions of their lives by the principle of self-interest rightly understood; they show
with complacency how an enlightened regard for themselves constantly prompts them to assist one another."
That spirit of individualism allowed Americans to be pioneers in fields such as science and technology—Benjamin Franklin
and Thomas Jefferson were scientists and inventors—industry, entertainment, and every other field that contributes to
life and prosperity. America's national enterprise was really an enterprise of million of individuals living their own lives
and pursuing their own goals. What is great and glorious about America comes from the freedom and dignity accorded to each
individual.
American Confusion
That's not the America that we live in today. America in the early twenty-first century is a very politically and morally
confusing place. The Republican Party, which traditionally stands for limited government, has been in the ascendancy since
Ronald Reagan and under President George W. Bush has controlled both houses of Congress. Yet the size and burden of government
have not been reduced; indeed, in many areas it has expanded. While President Reagan spoke of eliminating the federal Department
of Education, President Bush has used it aggressively to impose policies on local schools. A look at non-defense spending
in the first three years of each administration since Lyndon Johnson's shows a cumulative increase under Bush of 23.4 percent,
second only to Johnson's 24.8 percent increase and comparing unfavorably with a decrease under Reagan.
Many commentators see the polarization of the country into Republican "red" states and Democratic "blue" states arising
from underlying value differences. In the red states voters worry that freedom is threatened when a society loses the moral
compass traditionally supplied by religion and long-standing customs, and drifts into moral relativism. They see such relativism
as responsible for social pathologies like crime, youth violence, broken families, and the spread of sexually transmitted
diseases, which in turn give rise to more government-assistance programs with accompanying tax hikes. They often favor policies
of censorship or the regulation of morality on the strange-sounding premise that freedom must be limited in order to be preserved.
Often, perhaps out of frustration at a lack of control over the forces they see undermining public order, these citizens
invest much emotion and effort in symbolic battles over values. They want to keep "under God" in the pledge of allegiance
even though there is no evidence that kids' reciting those words each day make schools less violent or kids more likely to
learn. They favor a display of the Ten Commandments in a courthouse lobby even though there is no evidence that this makes
judges and lawyers more likely to respect the principles of the Constitution that they often ignore.
Voters in the blue states fear that traditional morality and religious dogma indeed will lead to intolerance and repression.
They see social pathologies arising from material disadvantages and inequalities. An individual's economic status, they believe,
determines his morals and behavior. Those with this view favor government-imposed economic regulations, welfare programs,
and transfer payments. Yet this approach in the past has failed and in fact contributed to those pathologies by rewarding
moral irresponsibility. Further, by its nature this approach limits the liberty of the entrepreneurs who create wealth to
begin with, and it takes rather than protects the property of the citizens.
Today's political and moral confusion, which limits liberty, is in part the result of the disappearance from the public
dialogue and consciousness—and thus from too many individual minds—of the concept of individualism.
Twentieth-Century Challenges
The erosion of liberty and its underlying moral foundation is in large part the result of the ideas in the twentieth century
that challenged the prevailing individualism, especially during times of social stress and transformation. Further, until
well into the twentieth century America's individualism was not philosophically defended. Indeed, Tocqueville's observation
about the 1830s was applicable nearly into the 1930s: "In no country in the civilized world is less attention paid to philosophy
than in the United States. The Americans have no philosophical school of their own, and they care but little for all the schools
into which Europe is divided."
The twentieth century saw challenges to the individualism from fascism, which placed the race, ethnic group, or state ahead
of the individual, and communism, which placed economic class first and advocated the supremacy of the proletariat or "working"
class. These systems were necessarily dictatorial; they sacrificed and enslaved millions of individuals. In the end, it was
easy for most Americans to reject these challenges, and it is difficult for many young people today to appreciate that such
challenges were ever taken seriously.
But the twentieth century also saw less harsh and thus more seductive challenges to individualism coming from socialist
and the welfare state paternalism based on the moral premise that we are each our brother's keeper. In America, the Progressive
Era, New Deal, and Great Society assigned to government the job of correcting the perceived failures of the free market and
free institutions, and of actually caring for the material needs of individuals—for food, housing, education, jobs,
medical care, retirement income, and the like—in the name of a better society but also in the name of a different, more
relevant individualism.
In reaction to this challenge, thinkers like Ludwig von Mises and F.A. Hayek demonstrated that government economic planning
must necessarily fail. The Public Choice school associated with James Buchanan and Gordon Tullock showed that government philosopher
kings could not be impartial and above institutional interests as they devised and administered alleged solutions to social
problems. Yet these defenses, as we shall see, ignored the moral arguments for individualism that were, in fact, provided
by Ayn Rand, beginning most notably with her 1943 novel The Fountainhead. But this crucial defense was ignored until recent decades.
Today's political and social landscape is largely defined by the paternalist or "collectivist lite" challenge to individualism.
The Current Political Landscape
In post-World War II America the political Right retained the vocabulary of individualism. Barry Goldwater's 1960 book,
The Conscience of a Conservative, served as the manifesto that propelled him to the 1964 Republican nomination for
president. Concerning conservatives, Goldwater maintained that "the first thing he has learned about man is that each member
of the species is a unique creature. Man's most sacred possession is his individual soul." Secondly, "the economic and spiritual
aspects of man's nature are inextricably intertwined. He cannot be economically free...if he is enslaved politically; conversely,
man's political freedom is illusory if he is dependent for his economic needs on the state." And finally, "man's development,
in both its material and spiritual aspects, is not something that can be directed by outside forces. Every man, for his individual
good and for the good of society, is responsible for his own development. The choices that govern his life are choices
that he must make; they cannot be made by any other human being, or by a collectivity of human beings."
That philosophy informed much of the modern conservative movement, which included the man who launched his own political
career with his powerful speech in support of Goldwater's nomination: Ronald Reagan used similar rhetoric in his successful
quest for the presidency.
In the years since Reagan, the collapse of Soviet communism has vindicated economic thinkers like Mises and Hayek. But
ironically, in America and elsewhere the reality of individualism has faded in part because the economic and political cases
for freedom were not based on a solid moral foundation. A survey of the political landscape today shows the status of individualism.
Libertarians. Libertarians for the most part are consistent advocates of individual liberty in the economic and
political realms and the true heirs to America's individualist political tradition. Think tanks like the Cato Institute and
Reason Foundation produce cutting-edge critiques of the failures of government programs that limit liberty, especially in
the economic area, and the weakening of the rule of law by arbitrary government power.
While many libertarians come from the natural-law and natural-rights tradition of America's Founders, others come from
a limited, usually economic, utilitarian perspective. Their view of the free-market system, for example, in the words of Mises,
"presupposes that people prefer life to death, health to sickness, nourishment to starvation, abundance to poverty. It teaches
man how to act in accordance with these valuations." While this might be a good generalization, it does not take account of
the real fact that many people would not make such choices. Islamists prefer strapping explosives to themselves or their children
in order to kill other children. Less dramatic examples are individuals who would accept less abundance in the name of a "social
justice" based on envy. Winston Churchill said, "socialism is the equal sharing of misery," and he was right that many opponents
of freedom are not simply confused about the economic consequences of their policies—rather, they want to pull down
the well-to-do more than to raise up those in need.
Thus, while libertarians tend to be consistent defenders of economic individualism and limited government, they often ignore
the moral justification of such freedom. Further, while their impact on policy is growing, it is still less than that of traditional
conservatives and neo-conservatives.
Traditional conservatives. While traditional conservatives do tend to acknowledge the importance of the individual—often
from a religious understanding of the unique value of each person—they also fear power and the unrestrained ego. They
see the abuses of a Hitler and Stalin and the murderous mobs in the streets during the French revolution as manifestations
of the same evil. Such conservatives see the importance of religion, customs, and traditions, and private institutions such
as families, fraternal organizations, and churches, in restraining the ego and providing a nurturing environment in which
individuals can develop their virtues and live productive lives. Conservatives thus favor limited, constitutional governments
with checks and balances.
But too often conservatives use government to support beliefs and institutions that they see as essential to restrain the
ego. Further, they often treat these institutions as ends in themselves, sacrificing the individual and freedom for the good
of society. These institutions and the attitudes, if not the laws, that support them can stifle individual creativity.
Further, many conservatives, often as a function of their religious perspective, are uncomfortable taking rational, individual
self-interest too far. They feel they need to invoke some collective good to justify individual liberty. Thus, they might
argue that tax cuts that their critics contend help the rich also help create job opportunities and lower prices for the poor.
While this is true, the principal justification of economic freedom is that it is the individual's right, not some collective
good.
Finally, justifying individual liberty based on religious beliefs or mere tradition will not convince those who do not
share one's religion and for whom traditions hold little sway.
Compassionate and neo-conservatives. Neo-conservatives often are ex-leftists who have become aware of both the economic
problems and the social pathologies created by traditional leftist policies. They tend to favor many elements of the social
and political vision of traditional conservatives. But unlike traditional conservatives they do not have a general fear of
big government. Irving Kristol, the godfather of the movement, says of neo-cons: "They are impatient with the Hayekian notion
that we are on 'the road to serfdom.' Neocons do not feel that kind of alarm or anxiety about the growth of the state in the
past century, seeing it as natural, indeed, inevitable.... People have always preferred strong government to weak.... Neocons
feel at home in today's America to a degree that more traditional conservatives do not." This is why in the neo-con pantheon
of political heroes men like "Barry Goldwater are politely overlooked."
Neo-conservatives, in fact, are social engineers on the Right. While particular policies that they favor might be more
pro-individual than those of the Left, the neo-con view of government is fundamentally anti-individualistic.
What Is Individualism?
Given the problems and limitations of those on the Right who defend freedom in one form or another, it is necessary to
define more exactly the nature of individualism. In particular it is necessary to understand the facts and ideas that necessitate
and morally justify economic and political liberty for individuals.
Ayn Rand offered the most consistent and integrated understanding of individualism. She began with the fact that the fundamental alternative
for living creatures is life or death. But human beings are unique creatures. We have free will and a rational capacity. Indeed,
the phenomenon of making value choices is only possible for beings who can understand that alternatives and choices are possible,
i.e., living human beings. The standard of all values thus is human life, and the goal of survival is obtained through the
exercise of reason, the discovery of what will be in our self-interest. But because we are humans with extraordinary and wonderful
capacities, mere physical survival is not our goal; rather, it is a happy, joyous, and flourishing life.
Further, we each exist fundamentally as individuals. We survive physically as individuals even as others might die, and
we die as individuals even as others might continue to live. Our bodies are healthy or sick as individuals. And, most importantly,
we think and we will as individuals. We must be free to use the judgment of our own minds or else our survival is precarious
and dependent on others.
From this understanding we can identify the basic elements of true individualism.
First, true individualists will understand and feel that their own lives are their highest value, that to be alive is to
be blessed with the potential for happiness, that they should treat their own lives with respect, and that they should strive
with joy for the best within them. It would be odd if a person who believed in the importance and dignity of each individual
also believed that he or she personally was simply an agent who should serve others, with little concern for his or her own
life, dreams, and happiness.
Second, true individualists will understand that to strive for the best within them, they must hold reason as their highest
value because it is that capacity that allows them to reflect upon themselves, on their moral nature, and to discover the
means for their survival and flourishing. It was no accident that out of the Enlightenment and the Age of Reason came John
Locke, Thomas Jefferson, Benjamin Franklin, and many other giants in the battle for liberty.
Each individual's survival and well-being requires self-directed action toward those goals. That rules out the false subjectivist
form of individualism that says, "Do what feels good," with the assumption that thinking is not necessary. True individualism
also rules out the Nietzschean will to engage some master passion, usually the quest for power, as an end in itself. That
path leads one away from achieving the greatest fulfillment possible in one's life and more often than not leads to misery.
True, rational individualists are not slaves to their appetites; they check the whim of the moment and subject it to
critical examination.
Consider the extreme example of mind-altering drugs. While libertarians can rightly oppose the drug war as both ineffective
and a limitation on freedom, one must recognize that addiction to such drugs—or many other things—is destructive
of the unique and defining attributes of individuals: the rational mind and the free will. Would rational individuals with
the deepest sense of self-worth and dignity put poison in their brains? Would a drug addict be considered a true individualist?
But "reason" does not mean superficial judgments or arrogant rationalizations. Here conservatives can point to an all-too-real
danger that negates a true life guided by thought. Hayek rightly denounced the false individualism of those who believed they
could apply reason to build a prosperous and peaceful society through socialist planning the way engineers apply reason to
build machines.
Reason means exercising the virtue of honesty, of always asking one's self, "Am I trying to understand the facts of reality,
am I being truthful, am I willing to focus my mind and not evade?"
Third, true individualists understand that they are responsible for their own lives, actions, prosperity, and happiness.
Rand said, "As man is a being of self-made wealth, so he is a being of self-made soul." It is not simply our genetic makeup,
economic class, environment, or other accidental factors that determine our character or beliefs. We each, as individuals,
do so. Even in the most adverse circumstances individuals can take charge of their own souls; in his book, Man's Search
for Meaning, Viktor Frankl describes how he discovered personal freedom in a concentration camp—a freedom of will
and thought that even the Nazi torturers could not take away. While individualists will recognize that they certainly can
benefit from good parents, friends, and teachers, we each must understand that ultimately we are responsible for our own character
and actions.
Further, unlike lower animals, we must create the material means of our survival and flourishing. We must discover how
to produce food, shelter, clothing, medicines, printing presses, electric power, automobiles, airplanes, spaceships, computers,
and all those things that make survival and flourishing possible. The true individualist is a creator.
Fourth, true individualists take pride in their achievements. Such individuals welcome responsibility for their own lives
because, as adults, responsibility is the opportunity and path to the joy of achievement. Achievements are manifestations
of their virtues and right actions. It might involve inventing a new scientific device or making a new scientific discovery;
designing a house or laying the bricks for a house; writing a poem or a business plan; making a statue or a satellite; nurturing
a new business to profitability or a new child to adulthood. While we as individuals might appreciate the assistance of others,
it is only what we create ourselves that can give us pride. If we win a lottery we might be happy but we cannot be proud,
because chance, not our own conscious and guided actions, was responsible for our windfall. Similarly, while we might provide
some guidance and assistance to loved ones, individualists will understand that others will gain the greatest sense of self-worth
and self-actualization only if they take responsibility for themselves. After all, the goal of parents is to guide their children
to become independent adults, not to keep them infantile.
True pride, which Aristotle called "the crown of all the virtues," is not boastful and does not first seek approval of
others. It is first and foremost self-knowledge. And proud individuals will refuse to accept moral censure or guilt for their
virtues and moral knowledge.
Fifth, in society true individualists will assert the right to their own lives. They need not answer to a king, government,
their neighbors, or society. They can pursue their dreams as they see fit. They will recognize that their lives are not means
to the ends of others. This means that we must each be free to live by our own independent judgment about what is in our best
interest. After all, our individual autonomy is defined by our minds, and if we are not allowed to use our own judgment, our
autonomy is destroyed.
Sixth, true individualists will respect the equal rights of others. If in our souls we have a strong, burning sense of
justice, we would never wish the unearned for ourselves. The morality of true individualists precludes taking by force or
fraud either material goods or responsibility for actions or achievements that are not one's own. That would undermine our
pride in ourselves. Further, if we value reason, productivity, honesty, and the like, we will value and appreciate those virtues
in others and will not wish to be the destroyer of these virtues. That is why we will not wish to initiate the use of force
or fraud against others, because we would be harming ourselves and destroying those values that we love. In other words, all
of our relationships with others should be based on mutual consent.
Seventh, all true individualists will want a government that limits itself to protecting the life, liberty, and property
of all individuals—not trying to run our lives and treating us in a paternalistic manner. They will see the government
not as an agent to relieve them of responsibility for their lives and their neighbors of their wealth and liberty but as an
agent to protect them from the initiation of force and to establish the general rules to facilitate relationships with others
based on mutual consent.
Eighth, true individualists will want to live in a society of other individualists. They will benefit from trading goods
and services with others. They will be educated, entertained, enlightened, and inspired by the achievements of others—by
plays, movies, music, scientific discoveries, engineering feats, and every form of human achievement, which the true individualist
will celebrate.
In The Fountainhead, one of Ayn Rand's characters muses, "Don't work for my happiness, my brothers—show me your achievements—and the knowledge will
give me the courage for mine." This expresses the thoughts and sentiments of true individualists. They will love such a society
because of the individuals who make it up and will fight to preserve it from any threat in the same way they would fight to
preserve specific attacks on their personal liberty.
Ninthly, true individualists will exercise the virtue of benevolence. They will understand that through their actions,
example, and treatment of others, they can foster a society that gives them the means of material well-being and spiritual
fulfillment.
This review of the elements of individualism shows that political freedom is not a starting point but, rather, an end point
based on the nature of the individual and what is in the rational self-interest of each of us. This review also suggests that
our need for freedom arises from our nature and the nature of moral principles, and that those principles must be manifest
in the character of individuals if, in a society, citizens are to respect one another's rights and demand political freedom.
This review also suggests that where these ideas are absent from the minds of individuals and these moral principles absent
from their souls and characters, freedom in societies will erode. The elements of individualism, unfortunately, today tend
to be weak or missing from most of the political ideologies that are considered defenders of freedom, and that is why political
liberty is weakened.
The Paternalist Threat
This understanding suggests that perhaps the greatest threat to individualism today comes from what can be described as
political and moral paternalism, principally from the political Left but aided by moderates and "good government" politicians
of all parties. Paternalists are would-be ruling elites who would treat adults as if they were children who are unable to
run their own lives for themselves; these elites maintain that they want to care for such dependents, provide for their material
and other needs, and regulate their lives for their—the dependents'—own good.
Past collectivist challenges to individualism—communism, fascism—were paternalist as well but also extremely
brutal and thus easy for anyone with a semblance of reason and moral principles to reject. The welfare state and socialism
might be thought of as the kinder, gentler forms that are thus more subtle and seductive, less obvious enemies; that are in
some ways more dangerous because they are not seen as great threats. But their danger goes much deeper than limiting economic
liberty.
On the surface it seems that paternalists simply wish to help others deal with problems such as unemployment, access to
education and training, medical and retirement costs, and the like. In fact most paternalist elites also seek prestige—really,
a false sense of self-worth—power, and income, and these require the existence of groups in need. To this end, they
must curtail the liberty of individuals, eliminate the economic independence of individuals, and undermine the ethos of individualism.
The problem for the paternalist is that in a free society, individuals who wish to prosper can work hard, improve their knowledge
and skills, and advance their station in life, as our immigrant ancestors and so many Americans each day so dramatically demonstrate.
But the economic method of paternalism ensures economic dependence by ensuring that the economy will not function at its
best. The immediate victims of redistribution and regulation will be those who have their money taken and their freedom curtailed.
But the ripple effects of these policies will rob others of opportunities. For example, minimum-wage hikes often mean that
businesses will cut work hours and employment for marginal workers. The adverse effects of these policies will create the
illusion of "market failures," a pool of dependents, and thus a perceived requirement for more government intervention. Many
individuals, viewing this system in action but not understanding that it is of the paternalists' own making, will come away
with the mistaken belief that in the economic realm they cannot take responsibility for their own lives.
The paternalists can also expand the dependent class by offering programs, initially to help the "poorest of the poor"—free
school lunches for kids, social security, college loans—but then extend those programs to higher-income individuals
as a means to secure political support.
In other words, the paternalist is like a quack doctor who breaks a patient's leg in order to have patients, doesn't fix
the leg, and charges a hefty price for aspirin to reduce the pain.
Undermining Individualist Ideas and Character
But the maintenance of a dependent class requires more than the weakening of economic independence. Paternalists must also
corrupt moral ideas and moral character, that is, must undermine the elements of individualism that support political and
economic liberty.
The paternalist, for example, feels—and wants his dependents to feel—that somehow it is "unjust" for some individuals
to prosper—even through their own efforts—while others do not—even if it is through their own flaws or errors.
Thus, they posit a right of all individuals to certain goods—medical care, retirement income, job training—and
to certain economic outcomes—a distribution of wealth that does not leave too many rich or poor individuals. In other
words, they want individuals to believe that need equals entitlement. This false idea undermines the individualist belief
that in society we each have a right to our own life. It is the corrupted belief that tells us, "Yes, you have certain rights
but you also have obligations to others—other than to respect their equal right to freedom." Individuals who accept
this corrupted belief will find it difficult to argue against encroachments on their liberty. This moral confusion will mean
that they feel guilty about acting fully in accordance with rational self-interest and often will not have the will or emotional
commitment to fight such encroachments.
Essential to the maintenance of a paternalist system is an undermining of the morality of the mind - an essential aspect
of the individualist morality. Paternalists wish individuals to approach moral and economic issues not with thought but, rather,
with emotions not subject to rational evaluation. Demagogues have been with us since the first democracies in Greece. The
particular appeals offered by paternalists today include a sense of entitlement, envy, and indignation, which are meant to
stop the thinking process and warp the moral sense.
The sense of entitlement in the context of a paternalist system is the emotion of a child. A child feels—not thinks,
but feels—that "I have desires, and someone must fulfill them." Mature adults graduate to an individualist understanding
that they are the principal agents responsible for satisfying their desires and questioning whether those desires are in their
true self-interest to begin with.
Envy usually denotes the feeling that someone owns something that the envier wants, often accompanied by the feeling that
somehow the owner does not deserve it. Envy thus often entails more of a desire to pull others down rather than to raise one's
self or others up. In its most virulent form, envy is the emotion and moral choice of those who know, implicitly or explicitly,
that their problems are of their own making and that the prosperity and happiness of others is of theirs. The envious individual
desires to destroy that which is a reproach and reminder to them of their own failings. As Ayn Rand explained, envy is "hatred of the good for being the good."
The paternalist must foster envy. To the extent that dependents accept the paternalist's immoral premises and thus manifest
the emotion of envy, they will react with moral indignation at those who hesitate not only to acknowledge their right to taxpayer
dollars but also their status as victims and thus their moral superiority. Watch a demonstration of screaming, chanting poverty
activists who feel they are slighted and that their handouts are too small. Their emotions are required to short-circuit their
thought processes. (This was the function of the "Two Minutes Hate" in George Orwell's 1984.)
Further, the paternalist must foster in the individuals who are envied a sense of guilt, which will prevent them from rejecting
envious individuals' emotions in favor of a reasoned approach to moral principles.
Most middle-class Americans are in fact hardworking, conscientious, good to their families, and the like; in these things
they are members of the productive, responsible class of individualists who live for the most part by their own efforts—not
the extreme haters of achievement. To keep control, paternalists need to control these individuals as well. They do so by
feeding them small benefits that can build up over time. They might offer their kids free lunches in school. They might offer
the company for which they work government subsidies, trade protection, or other such assistance. If these individuals lose
their jobs, paternalists will give them government unemployment benefits, and when they retire, paternalists will offer them
social security and Medicare—paid for by making it difficult for these individuals to afford these things for themselves.
Such Americans might feel that they paid for these benefits out of deductions from their paychecks. But more and more add-ons
such as the new prescription drug benefit show these to be welfare programs.
Such individuals find themselves in a state of ethical insecurity and without the ideas and understanding to counter their
situation. They do not want to think of themselves as parasites and victims, for they still take some pride in their personal
efficacy, at least in some realms of their lives. Perhaps they look with scorn on blatant cases of irresponsible individuals
who manifest the worst of the parasites—for example, fat welfare mothers with a dozen kids by a dozen different fathers,
using their welfare money to purchase liquor and lottery tickets.
But these individuals might become indignant when discussing their need for government help with their medical bills or
with tuition for their kids at college. They don't want to consider whether those bills are so high because of government
programs and policies. In any case, what can they do to change things? They are simply victims of the system. In this case
we see how paternalism has undermined the ethos of individualism.
Restoring Individualism
The restoration of individual freedom and overthrow of the paternalist regime and ethos will require battles in several
arenas. The intellectual battle for political and economic freedom has been won. The collapse of Soviet-style communism proved
economists like Mises and Hayek to be correct. Theories purporting to show how political elites can successfully manage economies—for
example, those of the Keynesian school—have been discredited. Scholarship and experience demonstrate the adverse effects
of regulations of many industries and sectors, as well as the flexibility and vibrancy of market institutions. While there
is still a need to get this information into more schools and universities and into the minds of politicians, journalists,
community and opinion leaders, and the like, the intellectual case is beyond serious dispute.
The political battle has been tough going. One reason is that vested interest groups—paternalist patrons and their
clients—resist giving up their special privileges. But the battle for freedom will also require that the moral ideas
at the basis of individualism be clearly articulated and used to counter the assumptions of paternalism. These ideas will
encounter the moral sense and emotions in individuals that run counter to individualist principles. Creative ways of arguing
and appeals to what remains of sound moral principles in individuals' minds and habits in their souls will be necessary. Further,
it will be necessary to address the paternalist assumptions as they are manifest in the culture and to counter them with individualist
visions of what a culture can and should be.
Supporting Self-Interest. At the philosophical level, but with arguments that can be brought to bear on the political
and social controversies of the day, it is necessary to reinforce the notion that we each as individuals have an unequivocal
right to our own lives and thus can act in our rational self-interest without guilt. Most Americans are comfortable with self-interest
in economics. We seek the highest salaries possible in professions we choose. We seek the lowest prices for goods and services
of the quality we desire. Adam Smith expressed the maxim of economic self-interest when he wrote: "It is not from the benevolence
of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest. We address
ourselves, not to their humanity but to their self-love, and never talk to them of our own necessities but of their advantages."
This must not simply be the view in economic aspects of the lives of individuals but in every aspect.
Key to countering paternalism is to deal with the ideas and feelings that individuals usually have about their obligations
to others. Even when individuals do not feel guilty for living their own lives as they see fit, and even when they understand
that many individuals find themselves in need through flaws in their own moral code, character or actions, they feel - perhaps
grudgingly - that they have a duty to help them out of their situation.
Obviously with family members or friends that we value, such help might be a good investment, since we would be saving
a loved one that we value. But an individualist would understand not only that each individual ultimately must take responsibility
for their own lives but also that paternalists have created the culture and ethos that make it harder for individuals to appreciate
the need to pull themselves together and straighten out their lives. After all, paternalists need a dependent class.
It is also useful to emphasize that in a society of true individualists we would have far fewer social pathologies - individual
failings, really -- since individuals would have such respect for themselves that they would live to their highest potential
and not allow themselves to fall into such situations. Such a society would be one truly worth living in and would be in our
true self-interest, since we would be educated, entertained, inspired, and enlightened by the achievements of our fellows.
Pride versus Paternalist Pandering. Another way to counter the paternalist pandering of the present system is to
identify clearly its moral premises—a view of adults as children - and counter them with an appeal to pride. Most politicians
appeal to voters and supporters with never-ending laundry lists of promised benefits and handouts. "If elected, I will make
certain that every American has..." fill in the blank with any kind of material good or program. There is no end game for
the paternalist since there is no end to the lists of desires that pandering politicians might dream up.
Since many citizens are very much mixed in their morality, appeals to shame and pride can be important weapons against
the paternalist strategy. We might point out how citizens are being treated like infants. The paternalist says: "There, there
little boys and girls. We know you're not up to the burden of raising your own children, earning enough money to educate them,
insuring yourselves against illness or unemployment, saving for your retirement, tying your own shoes, or wiping your own
noses without our help. Don't worry, we'll give you all you need." Proud individualists would find such paternalism a personal
insult.
Paternalism is particularly dangerous because government benefits have been doled out gradually and built up, dragging
individuals further down into the depths of dependency. Many Americans concede liberty but console themselves by pleading
for the return of some of their money in the form of government benefits. As responsible individuals we should feel anger
and resentment at the politicians who created and perpetuated this system, who are turning us into beggars. When such politicians
offer us more handouts, we should react as we would if they offered us heroin. We should see politicians as pushers who addict
us to government. They destroy our economic autonomy like heavy drug users destroying their autonomous minds. How many citizens
want to think of themselves as pathetic, morally cripples created to serve the needs of paternalists?
Cultural Battles. Another battleground for reestablishing support for individual liberty is the culture. For individuals
who are not professional philosophers or thinkers, values are usually communicated and reinforced in their moral habits through
culture. and thus, this is a field to which the friends of freedom must pay increased attention. So we must attend to what
values are celebrated in art, movies, TV shows and to what individuals are praised for, what achievements, in the media, in
church sermons, by colleagues, friends, and family.
Of course, culture is not an arena in which one can fight battles the way one might do over a public policy before a legislative
body. But consider just a small example of how that battle might be fought. Statues are meant to represent heroes, those whom
we should honor for great achievements. Usually statues are of politicians or military leaders. Sometimes they are of artists,
composers, or great authors: Michelangelo, Beethoven, Shakespeare. We need more statues of business leaders and entrepreneurs
who communicate important values concerning man the creator. For example, currently the pharmaceutical industry is under attack
for problems with some products. But this is an industry that more than nearly any other, has saved lives, eased suffering,
and improved the quality of life. Citizens wishing to fight for an individualist culture might raise money to erect statues
to individual men and women who have made great discoveries in the field of medicine.
The best example of cultural as well as intellectual promotion of individualism is found in the novels of Ayn Rand. Presenting her themes in stories made the individualist morality more real than expositions in philosophical textbooks.
We see in motion pictures today some of these individualist themes being taken up the notion of excellence in The Incredibles
and love for one's work in The Aviator. For individualists, the arts are a cultural battleground they must move
into.
A New Individualism
Individualism has political, ethical, and cultural meanings. Politically, it stands for individual liberty, the notion
that each of us should be free to live our own lives as we see fit, as long as we respect the equal rights of others. Ethically,
it means valuing ourselves; taking responsibility for our own happiness; striving for the best within us; taking pride in
our achievement; and never accepting guilt for our virtues. Culturally, it means fostering, reinforcing, and celebrating the
elements of individualism.
Today, libertarians make valid economic and political arguments for freedom but often ignore that case. Conservatives understand
the need for a moral foundation but often favor religion and tradition, which are often unconvincing to many if not just plain
wrong. A new individualism would provide that moral basis to buttress freedom and a society of proud achievers who would never
tolerate limits on their legitimate liberty.
Political freedom cannot be maintained without individualist ideas and morality in the hearts and minds of enough people
in a society. Thus, as we fight for freedom in this country, we must fight for a new individualism that will serve as the
foundation for that freedom.
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How Interventionism Works
It is not the task of today's discussion to raise any questions about the merits either of capitalism or of socialism.
I am dealing today with interventionism alone. And I do not intend to enter into an arbitrary evaluation of interventionism
from any preconceived point of view. My only concern is to show how interventionism works and whether or not it can be considered
as a pattern of a permanent system for society's economic organization.
The interventionists emphasize that they plan to retain private ownership of the means of production, entrepreneurship
and market exchange. But, they go on to say, it is peremptory to prevent these capitalist institutions from spreading havoc
and unfairly exploiting the majority of people. It is the duty of government to restrain, by orders and prohibitions, the
greed of the propertied classes lest their acquisitiveness harm the poorer classes. Unhampered or laissez-faire capitalism
is an evil. But in order to eliminate its evils, there is no need to abolish capitalism entirely. It is possible to improve
the capitalist system by government interference with the actions of the capitalists and entrepreneurs. Such government regulation
and regimentation of business is the only method to keep off totalitarian socialism and to salvage those features of capitalism
which are worth preserving. On the ground of this philosophy, the interventionists advocate a galaxy of various measures.
Let us pick out one of them, the very popular scheme of price control.
How Price Control Leads to Socialism
The government believes that the price of a definite commodity, e.g., milk, is too high. It wants to make it possible for
the poor to give their children more milk. Thus it resorts to a price ceiling and fixes the price of milk at a lower rate
than that prevailing on the free market. The result is that the marginal producers of milk, those producing at the highest
cost, now incur losses. As no individual farmer or businessman can go on producing at a loss, these marginal producers stop
producing and selling milk on the market. They will use their cows and their skill for other more profitable purposes. They
will, for example, produce butter, cheese or meat. There will be less milk available for the consumers, not more. This, or
course, is contrary to the intentions of the government. It wanted to make it easier for some people to buy more milk. But,
as an outcome of its interference, the supply available drops. The measure proves abortive from the very point of view of
the government and the groups it was eager to favor. It brings about a state of affairs, which — again from the point
of view of the government — is even less desirable than the previous state of affairs which it was designed to improve.
| "The conflict of the two principles is irreconcilable and does not allow for any
compromise. Control is indivisible." |
Now, the government is faced with an alternative. It can abrogate its decree and refrain from any further endeavors to
control the price of milk. But if it insists upon its intention to keep the price of milk below the rate the unhampered market
would have determined and wants nonetheless to avoid a drop in the supply of milk, it must try to eliminate the causes that
render the marginal producers' business unremunerative. It must add to the first decree concerning only the price of milk
a second decree fixing the prices of the factors of production necessary for the production of milk at such a low rate that
the marginal producers of milk will no longer suffer losses and will therefore abstain from restricting output. But then the
same story repeats itself on a remoter plane. The supply of the factors of production required for the production of milk
drops, and again the government is back where it started. If it does not want to admit defeat and to abstain from any meddling
with prices, it must push further and fix the prices of those factors of production which are needed for the production of
the factors necessary for the production of milk. Thus the government is forced to go further and further, fixing step by
step the prices of all consumers' goods and of all factors of production — both human, i.e., labor, and material —
and to order every entrepreneur and every worker to continue work at these prices and wages. No branch of industry can be
omitted from this all-around fixing of prices and wages and from this obligation to produce those quantities which the government
wants to see produced. If some branches were to be left free out of regard for the fact that they produce only goods qualified
as non-vital or even as luxuries, capital and labor would tend to flow into them and the result would be a drop in the supply
of those goods, the prices of which government has fixed precisely because it considers them as indispensable for the satisfaction
of the needs of the masses.
But when this state of all-around control of business is attained, there can no longer be any question of a market economy.
No longer do the citizens by their buying and abstention from buying determine what should be produced and how. The power
to decide these matters has devolved upon the government. This is no longer capitalism; it is all-around planning by the government,
it is socialism.
Two Roads to Socialism
Interventionism cannot be considered as an economic system destined to stay. It is a method for the transformation of capitalism
into socialism by a series of successive steps. It is as such different from the endeavors of the communists to bring about
socialism at one stroke. The difference does not refer to the ultimate end of the political movement; it refers mainly to
the tactics to be resorted to for the attainment of an end that both groups are aiming at.
| "The recurrence of periods of depression and mass unemployment has discredited
capitalism in the opinion of injudicious people. Yet these events are not the outcome of the operation of the free market." |
Karl Marx and Fredrich Engels recommended successively each of these two ways for the realization of socialism. In 1848,
in the Communist Manifesto, they outlined a plan for the step-by-step transformation of capitalism into socialism.
The proletariat should be raised to the position of the ruling class and use its political supremacy "to wrest, by degrees,
all capital from the bourgeoisie." This, they declare, "cannot be effected except by means of despotic inroads on the rights
of property and on the conditions of bourgeois production; by means of measures, therefore, which appear economically insufficient
and untenable, but which in the course of the movement outstrip themselves, necessitate further inroads upon the old social
order, and are unavoidable as a means of entirely revolutionizing the mode of production." In this vein they enumerate by
way of example ten measures.
In later years Marx and Engels changed their minds. In his main treatise, Das Capital, first published in 1867,
Marx saw things in a different way. Socialism is bound to come "with the inexorability of a law of nature." But it cannot
appear before capitalism has reached its full maturity. There is but one road to the collapse of capitalism, namely
the progressive evolution of capitalism itself. Then only will the great final revolt of the working class give it the finishing
stroke and inaugurate the everlasting age of abundance.
From the point of view of this later doctrine Marx and the school of orthodox Marxism reject all policies that pretend
to restrain, to regulate and to improve capitalism. Such policies, they declare, are not only futile, but outright harmful.
For they rather delay the coming of age of capitalism, its maturity, and thereby also its collapse. They are therefore not
progressive, but reactionary. It was this idea that led the German Social Democratic party to vote against Bismarck's social
security legislation and to frustrate Bismarck's plan to nationalize the German tobacco industry. From the point of view of
the same doctrine, the communists branded the American New Deal as a reactionary plot extremely detrimental to the true interests
of the working people.
What we must realize is that the antagonism between the interventionists and the communists is a manifestation of the conflict
between the two doctrines of the early Marxism and of the late Marxism. It is the conflict between the Marx of 1848, the author
of the Communist Manifesto, and the Marx of 1867, the author of Das Capital. And it is paradoxical indeed
that the document in which Marx endorsed the policies of the present-day self-styled anti-communists is called the Communist Manifesto.
There are two methods available for the transformation of capitalism into socialism. One is to expropriate all farms, plants,
and shops and to operate them by a bureaucratic apparatus as departments of the government. The whole of society, says Lenin,
becomes "one office and one factory, with equal work and equal pay,"[1] the whole economy will be organized "like the postal sytem."[2] The second method is the method of the Hindenburg plan, the originally German pattern of the welfare state and of planning.
It forces every firm and every individual to comply strictly with the orders issued by the government's central board of production
management. Such was the intention of the National Industrial Recovery Act of 1933 which the resistance of business frustrated
and the Supreme Court declared unconstitutional. Such is the idea implied in the endeavors to substitute planning for private
enterprise.
Progressive Taxation
| "It is paradoxical indeed that the document in which Marx endorsed the policies
of the present-day self-styled anti-communists is called the Communist Manifesto." |
Looking backward on the evolution of income tax rates from the beginning of the Federal income tax in 1913 until the present
day, one can hardly expect that the tax will not one day absorb 100 percent of all surplus above the income of the average
voter. It is this that Marx and Engels had in mind when in the Communist Manifesto they recommended "a heavy progressive
or graduated income tax."
Another of the suggestions of the Communist Manifesto was "abolition of all right of inheritance." Now, neither
in Great Britain nor in this country have the laws gone up to this point. But again, looking backward upon the past history
of the estate taxes, we have to realize that they more and more have approached the goal set by Marx. Estate taxes of the
height they have already attained for the upper brackets are no longer to be qualified as taxes. They are measures of expropriation.
The philosophy underlying the system of progressive taxation is that the income and the wealth of the well-to-do classes can
be freely tapped. What the advocates of these tax rates fail to realize is that the greater part of the income taxed away
would not have been consumed but saved and invested. In fact, this fiscal policy does not only prevent the further accumulation
of new capital. It brings about capital decumulation. This is certainly today the state of affairs in Great Britain.
The Trend Toward Socialism
The course of events in the past thirty years shows a continuous, although sometimes interrupted progress toward the establishment
in this country of socialism of the British and German pattern. The United States embarked later than these two other countries
upon this decline and is today still farther away from its end. But if the trend of this policy will not change, the final
result will only in accidental and negligible points differ from what happened in the England of Attlee and in the Germany
of Hitler. The middle-of-the-road policy is not an economic system that can last. It is a method for the realization of socialism
by installments.
Loopholes Capitalism
Many people object. They stress the fact that most of the laws which aim at planning or at expropriation by means of progressive
taxation have left some loopholes which offer to private enterprise a margin within which it can go on. That such loopholes
still exist and that thanks to them this country is still a free country is certainly true. But this "loopholes capitalism"
is not a lasting system. It is a respite. Powerful forces are at work to close these loopholes. From day to day the field
in which private enterprise is free to operate is narrowed down.
The Coming of Socialism is Not Inevitable
Of course, this outcome is not inevitable. The trend can be reversed as was the case with many other trends in history.
The Marxian dogma according to which socialism is bound to come "with the inexorability of a law of nature" is just an arbitrary
surmise devoid of any proof.
 |
$10 |
| "The socialists want to substitute the unique plan of a central authority
for the plans of the various individuals." | But the prestige which this vain prognostic
enjoys not only with the Marxians, but with many self-styled non-Marxians, is the main instrument of the progress of socialism.
It spreads defeatism among those who otherwise would gallantly fight the socialist menace. The most powerful ally of Soviet
Russia is the doctrine that the "wave of the future" carries us toward socialism and that it is therefore "progressive" to
sympathize with all measures that restrict more and more the operation of the market economy.
Even in this country which owes to a century of "rugged individualism" the highest standard of living ever attained by
any nation, public opinion condemns laissez-faire. In the last fifty years, thousands of books have been published to indict
capitalism and to advocate radical interventionism, the welfare state, and socialism. The few books which tried to explain
adequately the working of the free-market economy were hardly noticed by the public. Their authors remained obscure, while
such authors as Veblen, Commons, John Dewey, and Laski were exuberantly praised. It is a well-known fact that the legitimate
stage as well as the Hollywood industry are no less radically critical of free enterprise than are many novels. There are
in this country many periodicals which in every issue furiously attack economic freedom. There is hardly any magazine of opinion
that would plead for the system that supplied the immense majority of the people with good food and shelter, with cars, refrigerators,
radio sets, and other things which the subjects of other countries call luxuries.
The impact of this state of affairs is that practically very little is done to preserve the system of private enterprise.
There are only middle-of-the-roaders who think they have been successful when they have delayed for some time an especially
ruinous measure. They are always in retreat. They put up today with measures which only ten or twenty years ago they would
have considered as undiscussable. They will in a few years acquiesce in other measures which they today consider as simply
out of the question. What can prevent the coming of totalitarian socialism is only a thorough change in ideologies. What we
need is neither anti-socialism nor anti-communism but an open positive endorsement of that system to which we owe all the
wealth that distinguishes our age from the comparatively straitened conditions of ages gone by.
Ludwig von Mises (1881–1973) was dean of the Austrian School. Comment on the blog.
This address was delivered before the University Club of New York, April 18, 1950. First printed by Commercial and
Financial Chronicle, May 4, 1950; now available in Planning for Freedom.
www.mises.org
The Communist Manifesto by Karl
Marx
We were warned of the general procedure and the
specific measures for a successful communist or socialist revolution by Karl Marx, the "father" of communism, in 1848:
"We have seen . . . that the first step in the revolution by the working class is to raise the proletariat to the position
of ruling class, to establish democracy. The proletariat (working poor) will use its political supremacy to wrest by degrees
all capital from the bourgeoisie (property owners); to centralize all instruments of production in the hands of the state.
. . .
These measures will, of course, be different in different countries.
Nevertheless, in the most advanced countries the following will be pretty generally applicable:
1. Abolition of property in land and application of all rents of land to public purposes.
2. A heavy progressive or graduated income tax.
3. Abolition of all right of inheritance.
4. Confiscation of the property of all emigrants and rebels.
5. Centralization of credit in the hands of the state by means of a national bank with state capital and an exclusive monopoly.
6. Centralization of the means of communication and transport in the hands of the state.
7. Extension of factories and instruments of production owned by the state; the bringing into cultivation of waste lands,
and the improvement of the soil generally in accordance with a common plan.
8. Equal obligation of all to labor. Establishment of industrial armies, especially for agriculture.
9. Combination of agriculture with manufacturing industries; gradual abolition of the distinction between town and country
by a more equable distribution of the population over the country.
10. Free education for all children in public schools. Abolition of child factory labor in its present form. Combination
of education with industrial production, etc."
Reprinted in edited form from Essays on Liberty , Volume I, published in 1952 by The Foundation for Economic
Education, 30 S. Broadway, Irvington-on-Hudson, N.Y. 10533.
Society and the Individual
We have talked at length of individual rights; but what, it may be asked, of the “rights of society”? Don’t
they supersede the rights of the mere individual? The libertarian, however, is an individualist; he believes that one of the
prime errors in social theory is to treat “society” as if it were an actually existing entity. “Society”
is sometimes treated as a superior or quasi-divine figure with overriding “rights” of its own; at other times
as an existing evil which can be blamed for all the ills of the world. The individualist holds that only individuals exist,
think, feel, choose, and act; and that “society” is not a living entity but simply a label for a set of interacting
individuals. Treating society as a thing that chooses and acts, then, serves to obscure the real forces at work. If, in a
small community, ten people band together to rob and expropriate three others, then this is clearly and evidently a case of
a group of individuals acting in concert against another group. In this situation, if the ten people presumed to refer to
themselves as “society” acting in “its” interest, the rationale would be laughed out of court; even
the [p. 38] ten robbers would probably be too shamefaced to use this sort of argument. But let their size increase, and this
kind of obfuscation becomes rife and succeeds in duping the public.
The fallacious use of a collective noun like “nation,” similar in this respect to “society,” has
been trenchantly pointed out by the historian Parker T. Moon:
When one uses the simple monosyllable “France” one thinks of France as a unit, an entity. When . . . we say
“France sent her troops to conquer Tunis” — we impute not only unit but personality to the country. The
very words conceal the facts and make international relations a glamorous drama in which personalized nations are the actors,
and all too easily we forget the flesh-and-blood men and women who are the true actors . . . if we had no such word as “France”.
. . then we should more accurately describe the Tunis expedition in some such way as this: “A few of these thirty-eight
million persons sent thirty thousand others to conquer Tunis.” This way of putting the fact immediately suggests a question,
or rather a series of questions. Who were the “few”? Why did they send the thirty thousand to Tunis? And why did
these obey? Empire-building is done not by “nations,” but by men. The problem before us is to discover the men,
the active, interested minorities in each nation, who are directly interested in imperialism and then to analyze the reasons
why the majorities pay the expense and fight the war necessitated by imperialist expansion.6
The individualist view of “society” has been summed up in the phrase: “Society” is everyone
but yourself. Put thus bluntly, this analysis can be used to consider those cases where “society” is treated,
not only as a superhero with superrights, but as a supervillain on whose shoulders massive blame is placed. Consider the typical
view that not the individual criminal, but “society,” is responsible for his crime. Take, for example, the case
where Smith robs or murders Jones. The “old-fashioned” view is that Smith is responsible for his act. The modern
liberal counters that “society” is responsible. This sounds both sophisticated and humanitarian, until we apply
the individualist perspective. Then we see that what liberals are really saying is that everyone but Smith,
including of course the victim Jones, is responsible for the crime. Put this baldly, almost everyone would recognize the absurdity
of this position. But conjuring up the fictive entity “society” obfuscates this process. As the sociologist Arnold
W. Green puts it: “It would follow, then, that if society is responsible for crime, and criminals are not responsible
for crime, only those members of society who do not commit crime can [p. 39] be held responsible for crime. Nonsense this
obvious can be circumvented only by conjuring up society as devil, as evil being apart from people and what they do.”7
The great American libertarian writer Frank Chodorov stressed this view of society when he wrote that “Society Are
People.”
Society is a collective concept and nothing else; it is a convenience for designating a number of people. So, too, is family
or crowd or gang, or any other name we give to an agglomeration of persons. Society . . . is not an extra “person”;
if the census totals a hundred million, that’s all there are, not one more, for there cannot be any accretion to Society
except by procreation. The concept of Society as a metaphysical person falls flat when we observe that Society disappears
when the component parts disperse; as in the case of a “ghost town” or of a civilization we learn about by the
artifacts they left behind. When the individuals disappear so does the whole. The whole has no separate existence. Using the
collective noun with a singular verb leads us into a trap of the imagination; we are prone to personalize the collectivity
and to think of it as having a body and a psyche of its own.8
"We have it in our power to begin the world over again."
--Thomas Paine, Common Sense, 1792.
Spring 2009 -- The crisis in financial markets has set off a predictable torrent of anti-capitalist sentiment. Despite
the fact that government regulations were a major cause of the crisis, anti-capitalists and their enablers in the media have
blamed the market and called for new restraints. The government has already exerted an unprecedented degree of intervention
in financial markets, and it now seems clear that new economic controls will expand far beyond Wall Street.
Regulation of production and trade is one of the two basic things that government does in our mixed economy. The other
is redistribution—transferring income and wealth from one set of hands to another. In this realm, too, anti-capitalists
have seized the moment to call for new entitlements such as guaranteed health care, along with new tax burdens on the wealthy.
The economic crisis, along with the election of Barack Obama, has revealed a huge pent-up demand for redistribution. Where
does that demand come from? To answer that question in fundamental terms, we need to look back at the origins of capitalism
and look more closely at the arguments for redistribution.
The capitalist system came of age in the century from 1750 to 1850 as a result of three revolutions. The first was a
political revolution: the triumph of liberalism, particularly the doctrine of natural rights, and the view that government
should be limited in its function to the protection of individual rights, including property rights. The second revolution
was the birth of economic understanding, culminating in Adam Smith's Wealth of Nations. Smith demonstrated that when
individuals are left free to pursue their own economic interests, the result is not chaos but a spontaneous order, a market
system in which the actions of individuals are coordinated and more wealth is produced than would be the case if government
managed the economy. The third revolution was, of course, the Industrial Revolution. Technological innovation provided a lever
that vastly multiplied man's powers of production. The effect was not only to raise standards of living for everyone, but
to offer the alert and enterprising individual the prospect of earning a fortune unimaginable in earlier times.
The political revolution, the triumph of the doctrine of individual rights, was accompanied by a spirit of moral idealism.
It was the liberation of man from tyranny, the recognition that every individual, whatever his station in society, is an end
in himself. But the economic revolution was couched in morally ambiguous terms: as an economic system, capitalism was widely
regarded as having been conceived in sin. The desire for wealth fell under the shadow of the Christian injunction against
selfishness and avarice. The early students of spontaneous order were conscious that they were asserting a moral paradox—the
paradox, as Bernard Mandeville put it, that private vices could produce public benefits.
The critics of the market have always capitalized on these doubts about its morality. The socialist movement was sustained
by allegations that capitalism breeds selfishness, exploitation, alienation, injustice. In milder forms, this same belief
produced the welfare state, which redistributes income through government programs in the name of "social justice." Capitalism
has never escaped the moral ambiguity in which it was conceived. It is valued for the prosperity it brings; it is valued as
a necessary precondition for political and intellectual freedom. But few of its defenders are prepared to assert that the
mode of life central to capitalism—the pursuit of self-interest through production and trade—is morally honorable,
much less noble or ideal.
There is no mystery about where the moral antipathy toward the market comes from. It arises from the ethics of altruism,
which is deeply rooted in Western culture, as indeed in most cultures. By the standards of altruism, the pursuit of self-interest
is at best a neutral act, outside the realm of morality, and at worst a sin. It is true that success in the market is achieved
by voluntary trade, and thus by satisfying the needs of others. But it is also true that those who do succeed are motivated
by personal gain, and ethics is as much concerned with motives as with results.
In everyday speech, the term "altruism" is often taken to mean nothing more than kindness or common courtesy. But its
real meaning, historically and philosophically, is self-sacrifice. For the socialists who coined the term, it meant the complete
submersion of the self in a larger social whole. As Ayn Rand put it, “The basic principle of altruism is that man has
no right to exist for his own sake, that service to others is the only justification of his existence, and that self-sacrifice
is his highest moral duty, virtue, and value". Altruism in this strict sense is the basis for the various concepts of
"social justice" that are used to defend government programs for redistributing wealth. Those programs represent the compulsory
sacrifice of the people taxed to support them. They represent the use of individuals as collective resources, to be used as
means to the ends of others. And that is the fundamental reason why they should be opposed on moral grounds by anyone who
defends capitalism.
Demands for Social Justice
Demands for social justice take two different forms, which I will call welfarism and egalitarianism. According to welfarism,
individuals have a right to certain necessities of life, including minimum levels of food, shelter, clothing, medical care,
education, and so on. It is the responsibility of society to ensure that all members have access to these necessities. But
a laissez-faire capitalist system does not guarantee them to everyone. Thus, argue the welfarists, capitalism fails to satisfy
its moral responsibility and so must be modified through state action to provide such goods to people who cannot obtain them
by their own efforts.
According to egalitarianism, the wealth produced by a society must be distributed fairly. It is unjust for some people
to earn fifteen, or fifty, or a hundred times as much income as others. But laissez-faire capitalism permits and encourages
these disparities in income and wealth, and is therefore unjust. The hallmark of egalitarianism is the use of statistics on
the distribution of income. In 2007, for example, the top twenty percent of U.S. households on the income scale earned fifty
percent of total income, whereas the bottom twenty percent earned only 3.4 percent. The goal of egalitarianism is to reduce
this difference; any change in the direction of greater equality is regarded as a gain in equity.
The difference in these two conceptions of social justice is the difference between absolute and relative levels of well-being.
The welfarist demands that people have access to a certain minimum standard of living. As long as this floor or "safety net"
exists, it does not matter how much wealth anyone else has, or how great the disparities are between rich and poor. So welfarists
are primarily interested in programs that benefit people who are below a certain level of poverty, or who are sick, out of
work, or deprived in some other way. Egalitarians, on the other hand, are concerned with relative well-being. Egalitarians
have often said that of two societies, they prefer the one in which wealth is more evenly distributed, even if its overall
standard of living is lower. Thus, egalitarians tend to favor government measures such as progressive taxation which aim to
redistribute wealth across the entire income scale, not merely at the bottom. They also tend to support the nationalization
of goods such as education and medicine, taking them off the market entirely and making them available to everyone more or
less equally.
Let us consider these two concepts of social justice in turn.
Welfarism: the unchosen obligation
The fundamental premise of welfarism is that people have rights to goods such as food, shelter, and medical care. They
are entitled to these things. On this assumption, someone who receives benefits from a government program is merely
getting what is due him, in the same way that a buyer who receives the good he has paid for is merely getting his due. When
the state dispenses welfare benefits, it is merely protecting rights, just as it is when it protects a buyer against fraud.
In neither case is there any necessity for gratitude.
The concept of welfare rights, or positive rights as they are often called, is modeled on the traditional liberal rights
of life, liberty, and property. But there is a well-known difference. The traditional rights are rights to act without interference
from others. The right to life is a right to act with the aim of preserving oneself. It is not a right to be immune from death
by natural causes, even an untimely death. The right to property is the right to buy and sell freely, and to appropriate unowned
goods from nature. It is the right to seek property, but not a right to a dowry from nature, or from the state; it is not
a guarantee that one will succeed in acquiring anything. Accordingly, these rights impose on other people only the negative
obligation not to interfere, not to restrain one forcibly from acting as he chooses. If I imagine myself removed from society—living
on a desert island, for example—my rights would be perfectly secure. I might not live long, and certainly would not
live well, but I would live in perfect freedom from murder, theft, and assault.
By contrast, welfare rights are conceived as rights to possess and enjoy certain goods, regardless of one's actions;
they are rights to have the goods provided by others if one cannot earn them oneself. Accordingly, welfare rights impose positive
obligations on others. If I have a right to food, someone has an obligation to grow it. If I cannot pay for it, someone has
an obligation to buy it for me. Welfarists sometimes argue that the obligation is imposed on society as a whole, not on any
specific individual. But society is not an entity, much less a moral agent, over and above its individual members, so any
such obligation falls upon us as individuals. Insofar as welfare rights are implemented through government programs, for example,
the obligation is distributed over all taxpayers.
From an ethical standpoint, then, the essence of welfarism is the premise that the need of one individual is a claim
on other individuals. The claim may run only as far as the town, or the nation. It may not embrace all of humanity. But in
all versions of the doctrine, the claim does not depend on your personal relationship to the claimant, or your choice to help,
or your evaluation of him as worthy of your help. It is an unchosen obligation arising from the sheer fact of his need.
But we must carry the analysis one step further. If I am living alone on a desert island, then of course I have no welfare
rights, since there is no one else around to provide the goods. For the same reason, if I live in a primitive society where
medicine is unknown, then I have no right to medical care. The content of welfare rights is relative to the level of economic
wealth and productive capacity in a given society. Correspondingly, the obligation of individuals to satisfy the needs of
others is dependent on their ability to do so. I cannot be blamed as an individual for failing to provide others with something
I cannot produce for myself.
Suppose I can produce it and simply choose not to? Suppose I am capable of earning a much larger income than I do, the
taxes on which would support a person who will otherwise go hungry. Am I obliged to work harder, to earn more, for the sake
of that person? I do not know any philosopher of welfare who would say that I am. The moral claim imposed on me by another
person's need is contingent not only on my ability but also on my willingness to produce.
And this tells us something important about the ethical focus of welfarism. It does not assert an obligation to pursue
the satisfaction of human needs, much less the obligation to succeed in doing so. The obligation, rather, is conditional:
those who do succeed in creating wealth may do so only on condition that others are allowed to share the wealth. The goal
is not so much to benefit the needy as to bind the able. The implicit assumption is that a person's ability and initiative
are social assets, which may be exercised only on condition that they are aimed at the service of others.
Egalitarianism: “fair” distribution
If we turn to egalitarianism, we find that we arrive at the same principle by a different logical route. The ethical
framework of the egalitarian is defined by the concept of justice rather than rights. If we look at society as a whole, we
see that income, wealth, and power are distributed in a certain way among individuals and groups. The basic question is: Is
the existing distribution fair? If not, then it must be corrected by government programs of redistribution. A pure market
economy, of course, does not produce equality among individuals. But few egalitarians have claimed that strict equality of
outcome is required by justice. The most common position is that there is a presumption in favor of equal outcomes, and that
any departure from equality must be justified by its benefits to society as a whole. Thus, the English writer R. H. Tawney
wrote that "inequality of circumstance is regarded as reasonable, in so far as it is a necessary condition of securing the
services which the community requires." John Rawls's famous "Difference Principle"—that inequalities are permitted as
long as they serve the interests of the least advantaged persons in society—is only the most recent example of this
approach. [ See the sidebar on these two pioneers of egalitarianism. ] In other words, egalitarians recognize that strict leveling would
have a disastrous effect on production. They admit that not everyone contributes equally to the wealth of a society. To some
extent, therefore, people must be rewarded in accordance with their productive ability, as an incentive to put forth their
best efforts. But any such differences must be limited to those which are necessary for the public good.
What is the philosophical basis of this principle? Egalitarians often argue that it follows logically from the basic
principle of justice: that people are to be treated differently only if they differ in some morally relevant way. If we are
going to apply this fundamental principle to the distribution of income, however, we must first assume that society literally
engages in an act of distributing income. This assumption is plainly false. In a market economy, incomes are determined by
the choices of millions of individuals—consumers, investors, entrepreneurs, and workers. These choices are coordinated
by the laws of supply and demand, and it is no accident that a successful entrepreneur, say, earns much more than a day laborer.
But this is not the result of any conscious intention on the part of society. In 2007, the most highly paid entertainer in
the United States was Oprah Winfrey, who earned some $260 million. This was not because "society" decided she was worth that
much, but because millions of fans decided that her show was worth watching. Even in a socialist economy, as we now know,
economic outcomes are not under the control of government planners. Even here there is a spontaneous order, albeit a corrupt
one, in which outcomes are determined by bureaucratic infighting, black markets, and so forth.
Despite the absence of any literal act of distribution, egalitarians often argue that society is responsible for ensuring
that the statistical distribution of income meets certain standards of fairness. Why? Because the production of wealth is
a cooperative, social process. More wealth is created in a society characterized by trade and the division of labor than in
a society of self-sufficient producers. The division of labor means that many people contribute to the final product; and
trade means that an even wider circle of people share responsibility for the wealth that is obtained by the producers. Production
is so transformed by these relationships, say the egalitarians, that the group as a whole must be considered the real unit
of production and the real source of wealth. At least it is the source of the difference in wealth that exists between a cooperative
and a non-cooperative society. Therefore society must ensure that the fruits of cooperation are fairly distributed among all
participants.
But this argument is valid only if we regard economic wealth as an anonymous social product in which it is impossible
to isolate individual contributions. Only in that case will it be necessary to devise after-the-fact principles of distributive
justice for allocating shares of the product. But this assumption, once again, is plainly wrong. The so-called social product
is actually a vast array of individual goods and services available on the market. It is certainly possible to know which
good or service any individual has helped to produce. And when the product is produced by a group of individuals, as in a
firm, it is possible to identify who did what. After all, an employer does not hire workers by whim. A worker is hired because
of the anticipated difference his efforts will make to the final product. This fact is acknowledged by the egalitarians themselves
when they allow that inequalities are acceptable if they are an incentive for the more productive to increase the total wealth
of a society. To ensure that the incentives are going to the right people, as Robert Nozick has observed, even the egalitarian
must assume that we can identify the role of individual contributions. In short, there is no basis for applying the concept
of justice to the statistical distributions of income or wealth across an entire economy. We must abandon the picture of a
large pie that is being divided up by a benevolent parent who wishes to be fair to all the children at the table.
Once we abandon this picture, what becomes of the principle espoused by Tawney, Rawls, and others: the principle that
inequalities are acceptable only if they serve the interests of all? If this cannot be grounded in justice, then it must be
regarded as a matter of the obligations we bear to each other as individuals. When we consider it in this light, we can see
that it is the same principle we identified at the basis of welfare rights. The principle is that the productive may enjoy
the fruits of their efforts only on condition that their efforts benefit others as well. There is no obligation to produce,
to create, to earn an income. But if you do, the needs of others arise as a constraint on your actions. Your ability, your
initiative, your intelligence, your dedication to your goals, and all the other qualities that make success possible, are
personal assets that put you under an obligation to those with less ability, initiative, intelligence, or dedication.
In other words, every form of social justice rests on the assumption that individual ability is a social asset. The assumption
is not merely that the individual may not use his talents to trample on the rights of the less able. Nor does the assumption
say merely that kindness or generosity are virtues. It says that the individual must regard himself, in part at least, as
a means to the good of others. And here we come to the crux of the matter. In respecting the rights of other people, I recognize
that they are ends in themselves, that I may not treat them merely as means to my satisfaction, in the way that I treat inanimate
objects. Why then is it not equally moral to regard myself as an end? Why should I not refuse, out of respect for my own dignity
as a moral being, to regard myself as a means in the service of others?
Toward an individualist ethics
Ayn Rand ’s case for capitalism rests on an individualist ethics that
recognizes the moral right to pursue one's self-interest and rejects altruism at the root.
Altruists argue that life presents us with a basic choice: we must either sacrifice others to ourselves, or sacrifice
ourselves to others. The latter is the altruist course of action, and the assumption is that the only alternative is life
as a predator. But this is a false alternative, according to Rand. Life does not require sacrifices in either direction. The
interests of rational people do not conflict, and the pursuit of our genuine self-interest requires that we deal with others
by means of peaceful, voluntary exchange.
To see why, let us ask how we decide what is in our self-interest. An interest is a value that we seek to obtain: wealth,
pleasure, security, love, self-esteem, or some other good. Rand's ethical philosophy is based on the insight that the fundamental
value, the summum bonum, is life. It is the existence of living organisms, their need to maintain themselves through
constant action to satisfy their needs, that gives rise to the entire phenomenon of values. A world without life would
be a world of facts but not values, a world in which no state could be said to be better or worse than any other. Thus the
fundamental standard of value, by reference to which a person must judge what is in his interest, is his life: not mere survival
from one moment to another, but the full satisfaction of his needs through the ongoing exercise of his faculties.
Man's primary faculty, his primary means of survival, is his capacity for reason. It is reason that allows us to live
by production, and thus to rise above the precarious level of hunting and gathering. Reason is the basis of language, which
makes it possible for us to cooperate and transmit knowledge. Reason is the basis of social institutions governed by abstract
rules. The purpose of ethics is to provide standards for living in accordance with reason, in the service of our lives.
To live by reason we must accept independence as a virtue. Reason is a faculty of the individual. No matter how much
we learn from others, the act of thought takes place in the individual mind. It must be initiated by each of us by our own
choice and directed by our own mental effort. Rationality therefore requires that we accept responsibility for directing and
sustaining our own lives.
To live by reason, we must also accept productiveness as a virtue. Production is the act of creating value. Human beings
cannot live secure and fulfilling lives by finding what they need in nature, as other animals do. Nor can they live as parasites
on others. "If some men attempt to survive by means of brute force or fraud," argues Rand, "by looting, robbing, cheating
or enslaving the men who produce, it still remains true that their survival is made possible only by their victims, only by
the men who choose to think and to produce the goods which they, the looters, are seizing. Such looters are parasites incapable
of survival, who exist by destroying those who are capable, those who are pursuing a course of action proper to man."
The egoist is usually pictured as someone who will do anything to get what he wants—someone who will lie, steal,
and seek to dominate others in order to satisfy his desires. Like most people, Rand would regard this mode of life as immoral.
But her reason is not that it harms others. Her reason is that it harms the self. Subjective desire is not the test for whether
something is in our interest, and deceit, theft, and power are not the means for achieving happiness or a successful life.
The virtues I've mentioned are objective standards. They are rooted in man's nature, and thus apply to all human beings. But
their purpose is to enable each person to "achieve, maintain, fulfill, and enjoy that ultimate value, that end in itself,
which is his own life." Thus the purpose of ethics is to tell us how to achieve our real interests, not how to sacrifice them.
The trader principle
How then should we deal with others? Rand's social ethics rests on two basic principles: a principle of rights and a
principle of justice. The principle of rights says that we must deal with others peaceably, by voluntary exchange, without
initiating the use of force against them. It is only in this way that we can live independently, on the basis of our own productive
efforts; the person who attempts to live by controlling others is a parasite. Within an organized society, moreover, we must
respect the rights of others if we wish our own rights to be respected. And it is only in this way that we can obtain the
many benefits that come from social interaction: the benefits of economic and intellectual exchange, as well as the values
of more intimate personal relationships. The source of these benefits is the rationality, the productiveness, the individuality
of the other person, and these things require freedom to flourish. If I live by force, I attack the root of the values I seek.
The principle of justice is what Rand calls the trader principle: living by trade, offering value for value, neither
seeking nor granting the unearned. An honorable person does not offer his needs as a claim on others; he offers value as the
basis of any relationship. Nor does he accept an unchosen obligation to serve the needs of others. No one who values his own
life can accept an open-ended responsibility to be his brother's keeper. Nor would an independent person wish to be kept—not
by a master, and not by the Department of Health and Human Services. The principle of trade, Rand observes, is the only basis
on which humans can deal with each other as independent equals.
The Objectivist ethics, in short, treats the individual as an end in himself in the full meaning of that term. The implication
is that capitalism is the only just and moral system. A capitalist society is based on the recognition and protection of individual
rights. In a capitalist society, men are free to pursue their own ends, by the exercise of their own minds. As in any society,
men are constrained by the laws of nature. Food, shelter, clothing, books, and medicine do not grow on trees; they must be
produced. And as in any society, men also are constrained by the limitations of their own nature, the extent of their individual
ability. But the only social constraint that capitalism imposes is the requirement that those who wish the services of others
must offer value in return. No one may use the state to expropriate what others have produced.
Economic outcomes in the market—the distribution of income and wealth—depend on the voluntary actions and
interactions of all the participants. The concept of justice applies not to the outcome but to the process of economic activity.
A person's income is just if it is won through voluntary exchange, as a reward for value offered, as judged by those to whom
it is offered. Economists have long known that there is no such thing as a just price for a good, apart from the judgments
of market participants about the value of the good to them. The same is true for the price of human productive services. This
is not to say that I must measure my worth by my income, but only that if I wish to live by trade with others, I cannot demand
that they accept my terms at the sacrifice of their own self-interest.
Benevolence as a chosen value
What about someone who is poor, disabled, or otherwise unable to support himself? This is a valid question to ask, as
long as it is not the first question we ask about a social system. It is a legacy of altruism to think that the primary standard
by which to evaluate a society is the way it treats its least productive members. "Blessed are the poor in spirit," said Jesus;
"blessed are the meek." But there is no ground in justice for holding the poor or the meek in any special esteem, or regarding
their needs as primary. If we had to choose between a collectivist society in which no one is free but no one is hungry, and
an individualist society in which everyone is free but a few people starve, I would argue that the second society, the free
one, is the moral choice. No one can claim a right to make others serve him involuntarily, even if his own life depends on
it.
But this is not the choice we face. In fact, the poor are much better off under capitalism than under socialism, or even
the welfare state. As a matter of historical fact, the societies in which no one is free, like the former Soviet Union, are
societies in which large numbers of people go hungry.
Those who are capable of working at all have a vital interest in economic and technological growth, which occur most
rapidly in a market order. The investment of capital and the use of machinery make it possible to employ people who otherwise
could not produce enough to support themselves. Computers and communications equipment, for example, have now made it possible
for severely disabled people to work from their homes.
As for those who simply cannot work, free societies have always provided numerous forms of private aid and philanthropy
outside the market: charitable organizations, benevolent societies, and the like. In this regard, let us be clear that there
is no contradiction between egoism and charity. In light of the many benefits we receive from dealing with others, it is natural
to regard our fellow humans in a spirit of general benevolence, to sympathize with their misfortunes, and to give aid when
it does not require a sacrifice of our own interests. But there are major differences between an egoist and an altruist conception
of charity.
For an altruist, generosity to others is an ethical primary, and it should be carried to the point of sacrifice, on the
principle: give until it hurts. It is a moral duty to give, regardless of any other values one has, and the recipient has
a right to it. For an egoist, generosity is one among many means of pursuing our values, including the value that we place
on the well-being of others. It should be done in the context of one's other values, on the principle: give when it helps.
It is not a duty, nor do the recipients have a right to it. An altruist tends to regard generosity as an expiation of guilt,
on the assumption that there is something sinful or suspicious about being able, successful, productive, wealthy. An egoist
regards those same traits as virtues and sees generosity as an expression of pride in them.
The fourth revolution
I said at the outset that capitalism was the result of three revolutions, each of them a radical break with the past.
The political revolution established the primacy of individual rights and the principle that government is man's servant,
not his master. The economic revolution brought an understanding of markets. The Industrial Revolution radically expanded
the application of intelligence to the process of production. But mankind never broke with its ethical past. The ethical principle
that individual ability is a social asset is incompatible with a free society. If freedom is to survive and flourish, we need
a fourth revolution, a moral revolution, that establishes the moral right of the individual to live for himself.
David Kelley earned his Ph.D. in philosophy from Princeton University in 1975, and
later taught cognitive science and philosophy at Vassar College and Brandeis University. His articles on social
issues and public policy have appeared in Harpers, The Sciences, Reason, Harvard Business
Review, The Freeman, and elsewhere. His books include Unrugged Individualism: The Selfish Basis
of Benevolence; The Contested Legacy of Ayn Rand; The Evidence of the Senses, and The Art of
Reasoning, one of the most widely used logic textbooks in the country. Kelley is founder and executive director of The Atlas
Society.
TNI articles by David Kelley Atlas Society articles by David Kelley
6. Parker Thomas Moon, Imperialism and World Politics (New York: Macmillan, 1930), p. 58.
7. Arnold W. Green, “The Reined Villain,” Social Research (Winter, 1968), p. 656.
8. Frank Chodorov, The Rise and Fall of Society (New York: Devin Adair, 1959), pp. 29-30. [p. 45]
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