Author’s Note: Politics, government and our economic policies play profound roles in our ability to foster growth, pursue innovation and prosper as a society, as organizations and as entrepreneurs. While some may not agree that a blog dedicated to management excellence should take on topics that reek of politics and philosophy, I respectfully disagree.
The subject of this post (Ayn Rand and her writings) is polarizing. There tend to be two types of responses to anything about Rand’s philosophy. One response looks and sounds a lot like visceral hatred and contempt. The other comes off as a zealot-like devotion to the core principles outlined in her work. There is no middle ground when it comes to Ayn Rand. (Oh, and her name rhymes with “Mine.” Quit call her “Ann.”)
In recent lectures and prior blog posts I’ve occasionally referenced the fact that I feel like I’m living through a movie that I’ve seen before. The movie that I am referencing is the one that we are all playing bit roles in as our government works to restructure our industries and our economy.
I saw this movie for the first time in 1979 when my senior literature teacher asked for my opinion on a book called Atlas Shrugged. He gave me my first copy of this book one week before graduation, and given the 1,000 plus page heft of this work, we never did have our discussion. I finished the book for the first time over the 4th of July weekend that year. Given Rand’s firsthand experience with Soviet oppression and her core belief in what America could and should become, my timing for finishing this book on Independence Day was appropriate.
Stephen Moore, an economics writer for the Wall Street Journal does a masterful job in his January 9th Opinion piece, “Atlas Shrugged, From Fact to Fiction in 52 Years,” articulating what I’ve been sensing as our government has moved quickly in the past few months to assert control. The examples in Atlas and the parallels to what is happening today should send chills up the spine of any thinking being.
Before you decide to skewer me for my unflappable devotion to the philosophy and logic of Ayn Rand, read Moore’s article. Better yet, invest in yourself and read the book. Armed with proper context, you’ll be ready to argue why she’s evil personified or the embodiment of all that is good in man. Like I said, there’s no middle ground here.
OK, back to the movie unfolding in real time. My own perspective is that every one of us should be inherently uncomfortable about the opportunity for massive missteps in the government’s response to our economic challenges. These steps will define our economic lives for decades to come.
Now is not a time to stay silent as companies and industries are bailed out and effectively nationalized in the process. Now is not the time to reach for another handful of popcorn as regulations are foisted upon us in the name of national interest. Now is not the time to let people in Washington begin to define what is good for us and to act as our parent and protector.
Do you honestly believe that the government has any clue or any business running the auto industry? The banking industry? Any industry? Heck, they/we don’t even run the government effectively.
Some important questions that we should all be asking and answering:
- What are the criteria for “Too Big to Fail” and who is making these calls?
- Is it right to have our government gaining a stake in the future profits of formerly private enterprises and industries?
- Have we suddenly reached a level of enlightenment that politics and greed have been placed on hold in the halls of government, as people structure responses to the abuses of politics and greed?
- Why is it that government support and protection is now good for the free market?
- We’ve been preaching that it is a global world. Why are U.S. industries suddenly so deserving of protection and support?
- Are you confident that the auto unions (or any unions) are looking out for the best interests of the country?
…And so on.
The Bottom-Line for Now:
This is a good time to be asking yourselves and asking your elected officials the tough questions outlined above and many more. Whether the debate is over Rand and her philosophy of man and capitalism or it’s a debate over foundational philosophies of government…Jeffersonian versus Hamiltonian, there must be a debate.
Human instinct is to look for protection in a storm. Right or wrong, many of us look to our government for that protection. Government has now moved into your home, your job and your future. Is this right?
Ironically, the end of eight years that many decry as a time when our civil liberties were compromised and stolen, may usher in the greatest reduction in our civil liberties in our history. Do you really want government dictating how you will work and survive?
After two decades since her death, Ayn Rand is relevant. And while I’ve seen this movie before, we still have a chance to write our own ending. Get involved. Otherwise, just shrug your shoulders and ask, “Who is John Galt?”
Art, well said. We are in need of true leadership more now than ever. Thank you for promoting great principles through your blog and other writings. -Michael
Michael, thank you for your nice comments. Agreed on the need for all good leaders to stand up and be counted. -Art
Art,
I just got around to reading this, somehow I missed it before. I’m a Rand supporter and I’ve given her book to many people, but your argument that we need to follow Rand’s approach more fully is extraordinary to me.
Rand has no greater devotee than Alan Greenspan. His relationship with her is well documented. Christopher Cox similarly kept a copy of her book in his office. Like chocolate cake, a little bit of Rand is a great thing, too much and you get Bernie Madoff.
The world of financial services was completely unregulated for the last 10 years and it has now destroyed itself. There is not an investment bank still in existence, hedge funds are blocking their clients access to their money and as of two days ago, Iceland no longer has a government.
I have joked about the People’s Republic of the United States, but if the alternative is Merrill Lynch getting bailout money from the government, firing 12,000 employees and then giving senior execs $4B in bonuses, enough is enough.
There is a choice. Personally I opposed TARP because it will never work. Even the US government and their printing presses and treasury bonds cannot create enough money to save the “Too big to fail” banks. For the last 5 months, McDonalds has had lower CDS spreads than the US Government! That’s what an utter lack of regulation gets you.
The selfish man is no longer an innovator, he is a thief. I don’t think Bernie Madoff or Sammy Isreal or Nadel or Charli “as long as the music played we had to keep dancing” Prince were what Rand had in mind when she penned “Atlas Shrugged”, but that’s what we got. The ultimate moochers.
Andrew,
We will agree to disagree on many fronts, perhaps all. Your blaming today’s ills on the support of Rand’s philosophies is to use your term, “extraordinary.” Your interpretation of her “Virture of Selfishness” is a common misinterpretation of what she espoused. Respect your opinion, but disagree with your editorial drift. BTW, nor did I indicate that blind adherence to any philosophy much less one that the author of miserably failed to live up to in her own life, is the solution.
Debate and transparency. There are no free lunches.
Art,
I wouldn’t blame todays ills on Rand either. Furthermore, I am quite certain that government actions will create more problems than they will solve. The question is, given where we are today, what option is there?
We have a financial services industry that has leveraged it’s self so much that the only global instution that can offer assistance is the US government. Unfortunately the US government is already leveraged at 365% of GDP and it’s unlikely it will escape under 500%. Please see George Soros FT Op Ed piece: http://tinyurl.com/c8w9rc
I would contend that the golden age of Rand in financial services was from about 1997 when the SEC removed non-discolsure laws and allowed banks and financial services institutions to merge until about 2007. I give as my main proof for that, that the head of the SEC – Cox and the head of the Fed – Greenspan were both avid and vocal supports of Rand who implemented her theories.
Those times are gone. The most successful financial services instituions in the history of man, Goldman Sachs and Morgan Stanley do not voluntarly change themselves in banking institutions and willingly submit themselves to greater regulation unless the alternatives are too horrible to ponder.
As an entrepreneur, I’ll stick to my earlier statement. Rand is like chocolate cake. You need some to fuel free enterprise and the dreams that lead to innovation. But too much and you get the sickness which has killed investment banking and the related fields. The very fields that had the purest implementation of Rand’s teachings.