Productivity Versus Compulsion:
Ayn Rand's Case for Laissez-Faire Capitalism
This paper was first presented at the APEE economics conference on April 8, 2008.
If asked to spend but a few minutes identifying Ayn Rand’s
views on capitalism, one will necessarily be able to relate only a small
fraction of her thoughts on the subject. The important question – especially
for those freshly introduced to Rand’s philosophy, Objectivism, is – what about Ayn Rand’s views is different
from the views of other free-market thinkers? What useful, valuable
insights can we gain from her justification of laissez-faire capitalism which
are not found or at least not emphasized in the works of other advocates of
systematic individual freedom?
The beauty
and power of Rand’s justification for capitalism stems from its ethical
groundwork – especially insofar as she identifies the productivity of individual rational creators as the source of all
human prosperity and shows why only a free-market system can enable this
essential virtue to be unleashed and properly rewarded.
Productiveness
is one of the seven chief virtues in the Objectivist ethics. As Rand puts it,
"Productive work is the central purpose of a rational
man's life, the central value that integrates and determines the hierarchy of
all his other values. Reason is the source, the precondition of his productive
work - pride is the result."
While most
intellectuals and much of the public view productivity as amoral at best, Rand makes a case for why it is one of the foremost
virtues accessible a human being. Recognizing that the very existence of ethics
and moral values is preconditioned on the life
of the valuer, Rand
believes that the foremost choice each individual must make is the choice to
pursue or not to pursue his survival. But survival does not come gratuitously.
" In order to survive, man
has to discover and produce everything he needs, which means that he has to alter his background and
adapt it to his needs. Nature has not equipped him
for adapting himself to his background in the manner of animals. From the most primitive cultures to the most advanced
civilizations, man has had to manufacture things; his well-being depends on his success at production."
For Rand, then, productivity is a
matter of life or death – quite literally – and so institutional arrangements –
insofar as they encourage or restrict productivity – are encouraging life and
human flourishing in the former case and death and suffering in the latter. This
not a just a practical alternative; it is also a moral alternative – and
indeed, Rand sees no distinction between the truly
practical and the truly moral.
From
this ethical groundwork, Rand delves into
politics, the fourth branch of philosophy – after metaphysics, epistemology,
and ethics. In Capitalism: The Unknown
Ideal, she addresses the question: What conditions are required in order
for individuals to produce and flourish? Her answer is – most eloquently and
decisively – freedom from compulsion. She
notes that “… intelligence does not work
under coercion… man’s mind will not function at the point of a gun.” (Capitalism:
The Unknown Ideal, p. 141). A system based on command and control might
amass a measure of brute force to tackle issues of survival and production –
but it can never harness the ultimate source of all wealth – the individual
rational creative mind.
Why
does coercion fail to utilize the resources of individual rational creators?
"[T]o paraphrase Rand,
when one uses compulsion, one locks a man in a deadly double bind. He has the choice of obeying
authority and defying the conclusions of his reason (linked to the external reality) and facing the punishment
of reality, or of obeying his own mind,
and facing the punishment of authority. Man cannot exercise self-direction at
the point of a gun."
But it bears emphasizing that Rand
critiques central planning on an ethical basis that is inextricably tied to the
results produced in such a system. Because
central planning fails to enable the minds of individuals to work productively,
it is an evil and immoral approach – in the most fundamental way. According to
Rand, "Whoever, to whatever purpose or extent, initiates the use of force,
is a killer acting on the premise of death in a manner wider than murder: the
premise of destroying man's capacity to live…Force and mind are
opposites."
While
productivity – that cardinal moral virtue – fails to be actualized in a
command-and-control economy, it is unleashed to the fullest possible extent in
a purely free market. A system of natural rights guarantees that individuals
remain protected from the initiation of force by others. Rand
believes that “rights are conditions
of existence required by man’s nature for his proper survival. If man is to
live on earth, it is right for him to
use his mind, it is right to act on
his own free judgment, it is right to
work for his values and to keep the product of his work”.
Ayn
Rand identifies free-market capitalism as “a social system based on the
recognition of individual rights, including property rights, in which all
property is privately owned.” This
recognition of rights is the only possible explicit protection of the virtue of
productivity.
Under laissez-faire capitalism, “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 disenfranchised.” Every
man in a free market speaks for himself, thinks for himself, and works for
himself. When he cooperates with others, he does so to mutual benefit, not to
oppress another or to be enslaved to another’s wants without regard for his
own. It is because of this state of
affairs primarily – and because of its beneficent byproducts only secondarily –
that Rand justifies the free-market system. Only
in a free market can every individual’s self-sovereignty as a rational,
productive agent be respected consistently and unfailingly.
What Rand’s Defense
of Capitalism Teaches Us
Rand’s
justification for laissez-faire capitalism has not only academic merit, but
everyday relevance to each individual – no matter what his background or
occupation. Primarily, it enables productive individuals to adequately defend their accomplishments and their
way of life. They need not apologize for their productivity and their freedom
to work and earn rewards. They need not always make their argument that their
freedom is justifiable on account of the benefits it confers on others. Instead,
they can confidently assert that the actions they pursue – in whatever realm of
honest, life-affirming endeavor – are virtuous in a more fundamental sense.
These actions go directly to the root of promoting life – the source, underpinning, and precondition of all values.
And if one’s actions further life itself, this is the most powerful defense
that can be made of them – and of any system that enables them to come about.
Rand’s view of the ethical roots of productivity and free
markets can enable millions of individuals to become happier and more
productive by shedding the vestiges of guilt that many other philosophical
schools attempt to instill in individuals who have accomplished and benefited
from their accomplishments. The guilt is unwarranted, and in practice it
stifles what the individual experiencing it could achieve for his own further
prosperity and happiness. Imagine a world in which every productive individual
chooses to rid himself of the sense of shame about his virtues. Start with
yourself – if you have not already – in affirming your right to live and work
and use your mind. The rest will follow.
G. Stolyarov II is a science
fiction novelist, independent philosophical essayist, poet, amateur
mathematician, composer, contributor to Enter Stage Right, Le Quebecois
Libre, Rebirth of Reason, and the Ludwig von Mises Institute, Senior Writer for The Liberal Institute,
and Editor-in-Chief of The Rational
Argumentator, a magazine championing the
principles of reason, rights, and progress. Mr. Stolyarov's works have been published on GrasstopsUSA.com. He also posts his
articles on Helium.com and
Associated
Content to assist the spread of rational ideas. His newest science fiction
novel is Eden against the
Colossus. His latest non-fiction treatise
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Cosmology. His most recent play is Implied Consent.
You can also view his YouTube
Videos. Mr. Stolyarov can be contacted at gennadystolyarovii@yahoo.com. Recommend
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