Summary
"Capitalism: The Unknown Ideal" is a collection of essays by Ayn Rand and her associates that presents a comprehensive defense of laissez-faire capitalism. Rand argues that capitalism is not merely an economic system but a moral imperative rooted in individual rights and rational self-interest. She challenges the prevailing altruistic and collectivist doctrines that have led to the distortion and perversion of capitalism in modern society.
The book begins by defining capitalism as a social system based on the recognition of individual rights, including property rights, where all property is privately owned. Rand contrasts this with the altruist-collectivist ethics that have historically dominated political systems, leading to various forms of statist tyranny. She emphasizes that individual rights are the means of subordinating society to moral law, protecting individuals from the brute force of the collective.
Rand delves into the nature of rights, asserting that the right to life is the foundation of all rights, including the right to property. She critiques the concept of "economic rights" as a perversion of genuine rights, arguing that they necessitate the violation of others' rights and lead to slave labor. The book also explores the role of government, defining it as an institution with the exclusive power to enforce rules of social conduct, with its primary purpose being the protection of individual rights through objective laws.
Further essays address various aspects of capitalism, such as the impact of antitrust laws, the role of labor unions, and the nature of economic power versus political power. The book also includes essays discussing the history of American free enterprise. Key themes in these essays include the danger of government intervention in the economy, the importance of limited government, and the philosophical foundations of a free society. The negative impacts of altruism and the ‘tribal premise’ are highlighted as antithetical to individual freedom and economic prosperity.
The later sections tackle contemporary issues such as the student rebellion of the 1960s, which Rand views as a consequence of modern philosophy's attack on reason and the rise of a 'new fascism' characterized by rule by consensus and the obliteration of capitalism. The book underscores the importance of intellectual and moral integrity in defending capitalism and warns against the dangers of compromise and appeasement. Ultimately, "Capitalism: The Unknown Ideal" seeks to provide a philosophical framework for understanding and advocating capitalism as the only moral and practical system for human flourishing.