Notes on Capitalism: The Unknown Ideal by Ayn Rand

The next Ayn Rand book on my list was Capitalism: The Unknown Ideal, which I finished recently. It was a series of essays written by her and other authors around the topics of economics and politics.

It was interesting how the essays managed to convey the essence of her philosophy, but I did find it a bit repetitive after reading her other work, especially Philosophy: Who Needs It and The Virtue of Selfishness. I did like that the focus here was on economics and the results of applying the principles to that field.

It was also interesting how many of the essays focused on current events at the time of her writing. I got a nice perspective on life in the '60s. I did find some of the essays got too much into the weeds of the political events rather than the broader issues and lessons to be learned.

The parts I found most interesting were those dealing with the gold standard and the capital markets. I'm curious what modern day Objectivist economists think about her (and Greenspan's) arguments.

Below are my notes on the book, which I did find useful overall.

Introduction
Not about politics but about man's nature and philosophy
Nonfiction footnote to atlas

Theory and history

Ch 1 what Is capitalism
Demise of philosophy
Slavery to king changed to slavery to tribe
Must study man not community
Does man on his own mind or is he the property of the community to be disposed of as they wish
Capitalism is The only system where man is free and where property rights are absolute
No use of physical force
Governments role is to protect men's rights
Government can only use force to defend men's rights and in retaliation
Myth of the common good
Intrinsic good doesn't have to do with man
Subjective good doesn't have to do with reality
Objective good: something in reality as discovered and evaluated by mans mind
Capitalism only system that is based on objective standard of good
Man at top of intellectual pyramid gets only material reward but gets nothing intellectual from those below him
Man at bottom gets full payment for his direct work and contributes no ideas to those above


Ch 2 the roots of War
Trade better than conquest
Must outlaw use of force to stop wars


Ch 3 america's persecuted minority: big business
Discriminations and penalties based on abilities
Scapegoat in America is the businessman like the Jew in Germany
Freedom is only lack of physical coercion
Only right delegated to govt is use of force
Businessman's tool is value
Politicians is fear
Sherman act began downfall
Retroactive laws
Antitrust laws: Penalizing ability for ability
Illegal to set prices too high, too low, or same as others
Size is irrelevant


Ch 4 antitrust by Alan Greenspan
Takes huge skill and productivity to maintain share
Capital market regulates prices and monopolies, creates no coercive monopolies


Ch 5 common fallacies about capitalism by BRANDen

Monopolies 
No monopolies in free market
Monopolies only created by law
Govt should not manipulate money supply
Banks and capital flows and gold standard regulate properly

Depressions
In free market one persons mistake hurts only him
In controlled market one central planners mistake hurts everyone
Govt manipulation of money supply makes depression

Labor unions
Should be voluntary to join and deal with

Public education
Not prerogative of state
Child's mind not property of state
Should be free competition

Inherited wealth
Progressive taxation prevents newcomer from building up wealth and protects big firms and lets them do routine
Wealth purely choice of owner in who he gives it to

Practicality


Ch 6 gold and economic freedom by Greenspan
Medium of exchange should be durable commodity
Must be a luxury
Must be divisible, homogeneous
Must have scarcity and high unit value
Free banking system self regulates expansion by loans given and interest rates banks choose to charge
Small business cycles were much less severe on gold standard
Federal reserve wanted to eliminate biz cycles and make unending growth through credit creation
Gold standard not compatible with unlimited deficit spending for welfare programs
No safe store of value without gold standard
Gold is protector of property rights


Ch 7 history of free enterprise
Villain not free enterprise but govt controls
Only man of lesser ability runs to govt for control
Railroads and Vanderbilt forced into corruption by govt regulation
Solution is separation of govt and economics like separation of church and state


Ch 11 industrial revolution on women and children by Robert kesson

Child labor
Factories reduced infant mortality
Saved children from death by starvation

Women
Factories offered means of survival and more independence


Ch 9 the assault on integrity by Greenspan
Businessmen would sell only the best things for their own profit and greed
Those who lie would not survive
Value of brand and reputation
Natural incentive to scrupulous quality
Bad protection drives out good
Minimum standards become the maximums
Destroys competition for reputation


Ch 10 the property standards of airwaves
Same as ownership of land
Should be private
To make something available best to everyone out it on free market and let ppl pay
Govt control of broadcasting leads to censorship


Ch 11 patents and copyrights
Heart of intellectual property rights
Protect property


Ch 12 theory and practice
No self sacrifice in capitalism
Altruism doctrine of hatred of man
Sacrifice as its end

Blind chaos


Ch 13 let us alone
Only way government can help business is by leaving it alone
Brain drain from socialist England

Motives do not alter facts
Monarchists steal from subjects openly


Ch 14 anatomy of compromise
All cooperation between rational and irrational makes irrational win
No collaboration between free and communist countries
United Nations including soviet Russia 


Ch 15 is atlas shrugging
Revolt against reason, against mind in society
Intelligence has been going on strike for a while
Brain drain
Socialized medicine has huge cost in killing off theoretical scientists who make discoveries
Penalizing ability for being ability
Need should not dictate rights
Robin Hood bad symbol


Ch 16 the pole peddlers
Foreign aid programs
Appeals to altruism
Duty to support underdeveloped nations
Fear of other nations and so need to help them to be friendly


Ch 17 extremism and smearing
Package deal terms used to smear
Anti concept of extremism
Compromise is not supreme virtue


Ch 18 obliteration of capitalism
Mixed economy is country in obliteration


Ch 19 conservatism an obituary
Freedom or dictatorship
Capitalism and altruism incompatible
Only right to exist and be free


Ch 20 new fascism
Dominant trend of day: collectivism
Vesting of ownership and control to community/stat
Aristocracy of pull
Rich by connection and favor
Guild socialism
Shackling of able got benefit of mediocre
Socialism result of philosophy of pragmatism and no objective reality 


Ch 21 wreckage of the consensus
Draft is evil
Volunteer/paid army better


Ch 22 cashing in
Berkeley student rebellion
Mystics of muscle
About fighting ideologically
Ideas can only be fought with better ideas


Ch 23 alienation by branden
Frohme
Man's alienation
But should be objective
Life not intrinsically tragic


Ch 24 requiem for man


Appendix
Mans rights
It is not a right when it violates another man's right
Rights only of individuals


Nature of government
Required to protect individual rights and monopolize force for retaliation
Force only under objective laws
Individuals can do anything unless illegal
Govt can do nothing unless directed by ppl
Constitution limited govt not ppl

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