Capitalism The Unknown Ideal Quotes

Capitalism was the only system in history where wealth was not acquired by looting, but by production, not by force, but by trade, the only system that stood for man's right to his own mind, to his work, to his life, to his happiness, to himself.

The right to agree with others is not a problem in any society; it is the right to disagree that is crucial.

There is only one power that determines the course of history, just as it determines the course of every individual life: the power of man’s rational faculty—the power of ideas.

The concept of individual rights is so new in human history that most men have not grasped it fully to this day. In accordance with the two theories of ethics, the mystical or the social, some men assert that rights are a gift of God-- others, that rights are a gift of society. But, in fact, the source of rights is man's nature.

Capitalism is a social system based on the recognition of individual rights, including property rights, in which all property is privately owned

Since knowledge, thinking, and rational action are properties of the individual, since the choice to exercise his rational faculty or not depends on the individual, man’s survival requires that those who think be free of the interference of those who don’t. Since men are neither omniscient nor infallible, they must be free to agree or disagree, to cooperate or to pursue their own independent course, each according to his own rational judgment. Freedom is the fundamental requirement of man’s mind. A rational mind does not work under compulsion; it does not subordinate its grasp of reality to anyone’s orders, directives, or controls; it does not sacrifice its knowledge, its view of the truth, to anyone’s opinions, threats, wishes, plans, or “welfare.” Such a mind may be hampered by others, it may be silenced, proscribed, imprisoned, or destroyed; it cannot be forced; a gun is not an argument. (An example and symbol of this attitude is Galileo.) It is from the work and the inviolate integrity of such minds—from the intransigent innovators—that all of mankind’s knowledge and achievements have come. (See The Fountainhead.) It is to such minds that mankind owes its survival. (See Atlas Shrugged.)

Capitalism is based on self-interest and self-esteem; it holds integrity and trustworthiness as cardinal virtues and makes them pay off in the marketplace, thus demanding that men survive by means of virtues, not of vices.

Let anyone who believes that a high standard of living is the achievement of labor unions and government controls ask himself the following question: If one had a “time machine” and transported the united labor chieftains of America, plus three million government bureaucrats, back to the tenth century—would they be able to provide the medieval serf with electric light, refrigerators, automobiles, and television sets?

the penalizing of ability for being ability, the penalizing of success for being success, and the sacrifice of productive genius to the demands of envious mediocrity.

Do you think nobody would willingly entrust his children to you and pay you for teaching them? Why do you have to extort your fees and collect your pupils by compulsion?

This is said to civilized men who are to venture into countries where sacred cows are fed, while children are left to starve - where female infants are killed or abandoned by the roadside- where men go blind, medical help being forbidden by their religion - where women are mutilated, to insure their fidelity - where unspeakable tortures are ceremonially inflicted on prisoners - where cannibalism is practiced. Are these the ‘cultural riches’ which a Western man is to greet with ‘brotherly love’? Are these the ‘valuable elements’ which he is to admire and adopt? Are these the ‘fields’ in which he is not to regard himself as superior? And when he discovers entire populations rotting alive in such conditions, is he not to acknowledge, with a burning stab of pride - of pride and gratitude - the achievements of his nation and his culture, of the men who created them and left him a nobler heritage to carry forward?

I shall remind you that"rights" are a moral principle defining and sanctioning a man's freedom of action in a social context, that are derived from man's nature as a rational being and represent a necessary condition of his particular mode of survival. I shall remind you also that the right to life is the source of all rights, including the right to property.

It took centuries of intellectual, philosophical development to achieve political freedom. It was a long struggle, stretching from Aristotle to John Locke to the Founding Fathers. The system they established was not based on unlimited majority rule, but on its opposite: on individual rights, which were not to be alienated by majority vote or minority plotting. The individual was not left at the mercy of his neighbors or his leaders: the Constitutional system of checks and balances was scientifically devised to protect him from both.

Prior to the American Revolution, through centuries of feudalism and monarchy, the interests of the rich lay in the expropriation, enslavement, and misery of the rest of the people. A society, therefore, where the interests of the rich require general freedom, unrestricted productiveness, and the protection of individual rights, should have been hailed as an ideal system by anyone whose goal is man’s well-being.

Let those who are actually concerned with peace observe that capitalism gave mankind the longest period of peace in history—a period during which there were no wars involving the entire civilized world—from the end of the Napoleonic wars in 1815 to the outbreak of World War I in 1914.

Observe the nature of today’s alleged peace movements. Professing love and concern for the survival of mankind, they keep screaming that the nuclear-weapons race should be stopped, that armed force should be abolished as a means of settling disputes among nations, and that war should be outlawed in the name of humanity. Yet these same peace movements do not oppose dictatorships; the political views of their members range through all shades of the statist spectrum, from welfare statism to socialism to fascism tocommunism. This means that they are opposed to the use of coercion by one nation against another, but not by the government of a nation against its own citizens; it means that they are opposed to the use of force against armed adversaries, but not against the disarmed. Consider the plunder, the destruction, the starvation, the brutality, the slave-labor camps, the torture chambers, the wholesale slaughter perpetrated by dictatorships. Yet this is what today’s alleged peace-lovers are willing to advocate or tolerate—in the name of love for humanity.

Whenever, in any era, culture, or society, you encounter the phenomenon of prejudice, injustice, persecution, and blind, unreasoning hatred directed at some minority group—look for the gang that has something to gain from that persecution, look for those who have a vested interest in the destruction of these particular sacrificial victims. Invariably, you will find that the persecuted minority serves as a scapegoat for some movement that does not want the nature of its own goals to be known.

The issue is freedom versus dictatorship. It is only after men have chosen slavery and dictatorship that they can begin the usual gang warfare of socialized countries—today, it is called pressure-group warfare—over whose gang will rule, who will enslave whom, whose property will be plundered for whose benefit, who will be sacrificed to whose “noble” purpose.

What it does guarantee is that a monopolist whose high profits are caused by high prices, rather than low costs, will soon meet competition originated by the capital market.

Lobbying” is the activity of attempting to influence legislation by privately influencing the legislators.

I will ask you to project the look on a child’s face when he grasps the answer to some problem he has been striving to understand. It is a radiant look of joy, of liberation, almost of triumph, which is unself-conscious, yet self-assertive, and its radiance seems to spread in two directions: outward, as an illumination of the world—inward, as the first spark of what is to become the fire of an earned pride. If you have seen this look, or experienced it, you know that if there is such a concept as “sacred”—meaning: the best, the highest possible to man—this look is the sacred, the not-to-be-betrayed, the not-to-be-sacrificed for anything or anyone.

Do not, however, make the error of reversing cause and effect: the good of the country was made possible precisely by the fact that it was not forced on anyone as a moral goal or duty; it was merely an effect; the cause was a man’s right to pursue his own good. It is this right—not its consequences—that represents the moral justification of capitalism.

When numbers are substituted for morality, and no individual can claim a right, but any gang can assert any desire whatever, when compromise is the only policy expected of those in power, and the preservation of the moment’s “stability,” of peace at any price, is their only goal—the winner, necessarily, is whoever presents the most unjust and irrational demands; the system serves as an open invitation to do so.

statistics should be substituted for truth, vote-counting for principles, numbers for rights, and public polls for morality—that pragmatic, range-of-the-moment expediency should be the criterion of a country’s interests, and that the number of its adherents should be the criterion of an idea’s truth or falsehood—that any desire of any nature whatsoever should be accepted as a valid claim, provided it is held by a sufficient number of people—that a majority may do anything it pleases to a minority—in short, gang rule and mob rule

...she knew from school that that sort of literature was boring: Gorky was correct but somehow ponderous; Mayakovsky was very correct but somehow awkward; Saltykov-Shchedrin was progressive, but you could die yawning if you tried to read him through; Turgenev was limited to his nobleman's ideals; Goncharov was associated with the beginnings of Russian capitalism; Lev Tolstoi came to favor patriarchal peasantry—and their teacher did not recommend reading Tolstoi's novels because they were very long and only confused the clear critical essays written about him. And then they reviewed a batch of writers totally unknown to anyone: Dostoyevsky, Stepnyak-Kravchinsky, and Sukhovo-Kobylin. It was true that one did not even have to remember the titles of their works. In all this long procession, only Pushkin shone like a sun.

Child labor was not ended by legislative fiat; child labor ended when it became economically unnecessary for children to earn wages in order to survive—when the income of their parents became sufficient to support them. The emancipators and benefactors of those children were not legislators or factory inspectors, but manufacturers and financiers.

A country’s standard of living, including the wages of its workers, depends on the productivity of labor; high productivity depends on machines, inventions, and capital investment; which depend on the creative ingenuity of individual men; which requires, for its exercise, a politico-economic system that protects the individual’s rights and freedom.

The productive value of physical labor as such is low. If the worker of today produces more than the worker of fifty years ago, it is not because the former exerts more physical effort; quite the contrary: the physical effort required of him is far less. The productive value of his effort has been multiplied many times by the tools and machines with which he works; they are crucial in determining the economic worth of his services.

A collectivist tyranny dare not enslave a country by an outright confiscation of its values, material or moral. It has to be done by a process of internal corruption. Just as in the material realm the plundering of a country’s wealth is accomplished by inflating the currency—so today one may witness the process of inflation being applied to the realm of rights. The process entails such a growth of newly promulgated “rights” that people do not notice the fact that the meaning of the concept is being reversed. Just as bad money drives out good money, so these “printing-press rights” negate authentic rights.

If the universities—the supposed citadels of reason, knowledge, scholarship, civilization—can be made to surrender to the rule of brute force, the rest of the country is cooked.

A society in which the government (“the public authorities”) chooses and lays down the objectives to be pursued, the ends to be achieved, and the means for achieving them is a totalitarian state.

The main issue was the attempt to make the country accept mass civil disobedience as a proper and valid tool of political action.

Now project what would happen if the technique of the Berkeley rebellion were repeated on a national scale.

For the rest of us, it is a miniature preview—in the microcosm of the academic world—of what is to happen to the country at large, if the present cultural trend remains unchallenged.

The spread of evil is the symptom of a vacuum; whenever evil wins, it is only by default: by the moral failure of whose who evade the fact that there can be no compromise on basic principles. Capitalism: The Unknown Ideal, 1966

is often asked: Why was capitalism destroyed in spite of its incomparably beneficent record? The answer lies in the fact that the lifeline feeding any social system is a culture’s dominant philosophy and that capitalism never had a philosophical base. It was the last and (theoretically) incomplete product of an Aristotelian influence. As a resurgent tide of mysticism engulfed philosophy in the nineteenth century, capitalism was left in an intellectual vacuum, its lifeline cut. Neither its moral nature nor even its political principles had ever been fully understood or defined. Its alleged defenders regarded it as compatible with government controls (i.e., government interference into the economy), ignoring the meaning and implications of the concept of laissez-faire. Thus, what existed in practice, in the nineteenth century, was not pure capitalism, but variously mixed economies. Since controls necessitate and breed further controls, it was the statist element of the mixtures that wrecked them; it was the free, capitalist element that took the blame.

2. To facilitate the acceptance of force, the Berkeley rebels attempted to establish a special distinction between force and violence: force, they claimed explicitly, is a proper form of social action, but violence is not. Their definition of the terms was as follows: coercion by means of a literal physical contact is “violence” and is reprehensible; any other way of violating rights is merely “force” and is a legitimate, peaceful method of dealing with opponents.

There are, in essence, three schools of thought on the nature of the good: the intrinsic, the subjective, and the objective. The intrinsic theory holds that the good is inherent in certain things or actions as such, regardless of their context and consequences, regardless of any benefit or injury they may cause to the actors and subjects involved. It is a theory that divorces the concept of “good” from beneficiaries, and the concept of “value” from valuer and purpose—claiming that the good is good in, by, and of itself. The subjectivist theory holds that the good bears no relation to the facts of reality, that it is the product of a man’s consciousness, created by his feelings, desires, “intuitions,” or whims, and that it is merely an “arbitrary postulate” or an “emotional commitment.” The intrinsic theory holds that the good resides in some sort of reality, independent of man’s consciousness; the subjectivist theory holds that the good resides in man’s consciousness, independent of reality. The objective theory holds that the good is neither an attribute of “things in themselves” nor of man’s emotional states, but an evaluation of the facts of reality by man’s consciousness according to a rational standard of value. (Rational, in this context, means: derived from the facts of reality and validated by a process of reason.) The objective theory holds that the good is an aspect of reality in relation to man—and that it must be discovered, not invented, by man. Fundamental to an objective theory of values is the question: Of value to whom and for what? An objective theory does not permit context-dropping or “concept-stealing”; it does not permit the separation of “value” from “purpose,” of the good from beneficiaries, and of man’s actions from r

A free market never loses sight of the question: Of value to whom? And, within the broad field of objectivity, the market value of a product does not reflect its philosophically objective value, but only its socially objective value.

What does all this do to the best minds among the students? Most of them endure their college years with the teeth-clenched determination of serving out a jail sentence.

The forcible occupation of another man’s property or the obstruction of a public thoroughfare is so blatant a violation of rights that an attempt to justify it becomes an abrogation of morality. An individual has no right to do a “sit-in” in the home or office of a person he disagrees with—and he does not acquire such a right by joining a gang. Rights are not a matter of numbers—and there can be no such thing, in law or in morality, as actions forbidden to an individual, but permitted to a mob.