I've recently had an occasion to re-read Ayn Rand's Atlas Shrugged.  Many people, especially businesspeople, have read this book at some time in their life and found it inspirational. The characters of Hank Reardon, John Galt, Francisco D'Anconia, Ragnar Danneskjold, and Dagney Taggart remind us of the noble cause at the heart of capitalism and the transformative power of "real work".

Most of us read the book when we are young, become inspired and then become beaten down by the real world.  Too Bad! Read it again! The themes are just as relevant to business today as they ever were.  The looters are still at it. The creators don't demand their due, and while the engines of the world probably won't stop, there is continual sand in the gears. I believe that Rand might look at the world with the following kind of analysis.

First of all, Rand argues that capitalism is the creative force of the modern world.  We really need to understand this today.  With talks of "globalism" and "anti-globalism", tariffs on imported steel, the repeal of tax cuts, new regulations on financial reporting (even though it isn't clear that the old ones are really enforced), and other "looter solutions", we tend to forget that it is businesspeople that have given us computers, pacemakers, VIOXX, the potential for an HIV vaccine, the internet, everyday low prices at Wal Mart, and ability to control our lives to a much greater degree than ever in history. Individuals working together have been the creative force that has built our society.

Second, Rand would suggest that we not be fooled by the current wave of patriotism, and the good standing of government.  The response of citizens to the legitimate role of government in defending us against the evils of terrorism has been overwhelmingly positive, as it rightly should be.  But, that doesn't negate the continued government press for greater revenues and fewer benefits—for continued subsidies to many industries, regulations of the workplace, interference in the affairs of others,  and the like.  Nowhere is looter doubletalk more prevalent than in issues like "privatization of Social Security" or "take my money and let me decide what to do with some of it".

Third, Rand would be appalled at the idea that we can get something for nothing, merely by financial manipulation, or by taking advantage of an ambiguous set of rules.  Capitalism works because a business is able to produce something that someone else is willing to give part of their lives for.  Together we can create something that no one of us can create alone, and we do so voluntarily with some alternative choices in mind.  This idea that capitalism is about the voluntary acts of consenting adults is still too rare.

The ideas that are difficult to translate today were just as difficult in the 1950s.  Rand seems not to understand that capitalism can be about cooperating.  It is about putting together a deal so that communities, customers, suppliers, investors and employees win together over time---each approaching the deal with passion, seeking to do their absolute best work.  And, Rand seems not to understand that capitalism depends on caring for others just as much as caring for self, and indeed that these two ideas may be two sides of the same complex human coin.  The world is neither pure Randian egotism, nor pure looter altruism. 

The creator, the true business person, is self interested and is interested in others.  She creates because she has the desire to change the world, for herself and for others.  She values herself and she values others.  She understands that capitalism is the only system that has any possibility of living in freedom, of allowing her to pursue her projects with respect and dignity, without interference from others.  "Business Ethics" is not an oxymoron or a joke.  Capitalism must stand on this kind of Randian moral ground—or else it will be looted beyond recognition.

Read Atlas Shrugged again.  Get inspired. Create something.

Comments? Contact Ed Freeman

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