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Home , Atlas Shrugged, Yaron Brook

Volume 15, Number 7, July 2009

New Initiative Launched; Speaks Donor Gifts $500,000 Matching Pledge to Businessmen

tlas Shrugged is experiencing tripled during the first n 2002 ARI developed a A a renaissance amidst the four months of 2009 com- I leadership training pro- financial crisis, and a multi- pared to the previous year. gram, based on the values and million-dollar initiative has been Teachers are requesting of , for launched to capitalize on this more copies of ’s Hutchinson Technology at the momentum. The initiative is novels than ever before to request of CEO Wayne Fortun. aimed at expanding readership of teach in their classrooms. The success of this program the novel and educating readers Submissions to ARI es- about the novel’s ideas. It is say contests are at record led ARI to offer a customized off to an excellent start, as ARI levels. And commentary version of the training program board member and donor Carl by ARC intellectuals on to other companies, as well as one-time-only paid Barney has pledged to match, , radio and other seminars with Yaron Brook. dollar for dollar, all contributions media is in high demand. Demand for these services has shot up over up to $500,000. “It is paramount that the past year. Dr. Brook’s “ of ” The initiative targets both we act now to educate the seminar has been especially popular, suggesting that new readers and those who read millions that are reading at least some businessmen are eager for a moral the book years ago, but might Ayn Rand and trying to defense of free markets and the profit motive. only now see its importance and understand how the ideas Those participating in the corporate training relevance. Planned components in her novels apply to their program include one of the world’s largest civil- include bookstore promotions— lives. There is a sense of ian vendors of digital map data and Saxo Bank, a including airport bookstores— urgency, both in terms new Web sites, expansion of of the threat to freedom European financial institution. existing Web sites, YouTube currently emanating from ARC vice president of Public Outreach contests, applications, Washington and in the fact Lin Zinser attributes the heightened demand to talks and conferences, print, television and that, at this moment, more people than ever a number of factors. These include the finan- radio advertising, targeted op-eds, expansion before are listening to what we have to say. cial crisis, which has forced many businesses of the Atlas Shrugged essay contest and “I commend and thank Mr. Barney to reevaluate their basic , as well as the Free Books to Teachers program, and a for seeing this urgency and making such a word-of-mouth publicity, improved advertising heightened presence at activism events such as generous pledge. Maximizing that pledge and the quality of the product being offered. the Tea Parties. and reaching our target funding level for this “Our efforts over the years have resulted in “More and more people are seeing extra- initiative will lead to major advances in our a honed product that generates a very positive ordinary parallels between Ayn Rand’s mas- fight to bring about a more rational culture.” response from businessmen,” said Ms. Zinser. terpiece and the increasing government in- To learn more about this initiative, and to “Moreover, Dr. Brook’s delivery is inspirational volvement in the economy,” said Yaron Brook. contribute, visit www.aynrand.org/atlas. “Sales of Atlas Shrugged have more than at a time when people want and need to hear his continued on page 2 ARI at Clemson Institute Student Capitalism Conference The Value of ARI wenty-nine undergraduate students from motivation for attending the Clemson conference Taround the world recently gathered at Clem- is to give students an opportunity to learn more Volunteers son University to participate in a student confer- about the underlying philosophical principles ence on Atlas Shrugged and the of laissez- that give rise to various views about how society id you know that offering financial support faire. The three-day event was hosted by the should be organized, and to introduce them to D isn’t the only way you can help ARI pro- Clemson Institute for the Study of Capitalism, an Ayn Rand’s ethical and political views through mote Ayn Rand’s ideas? For example, a business academic institution dedicated to spreading aware- Atlas Shrugged. The students attending this con- may offer its services free or at a discount; an ness of the moral foundations of capitalism and the ference are bright and motivated to learn. Some individual with media contacts may introduce proper principles of a free society. of them go on to study Objectivism in depth; all our Media department to someone in radio or The conference featured a packed schedule walk away with an experience that they cannot television; and one of the most common forms of seminars and group discussions led by schol- get on their own campus.” of nonmonetary support is volunteering. ars and academics from the fields of philosophy, Attendance at the Clemson conference is by ARI welcomes volunteers into our Irvine, economics, literature, politi- application only. Those California, and Washington, D.C., offices, and cal science and history. accepted receive a full arranges for volunteers to work off-site when The faculty included ARI scholarship, which cov- possible. The work that volunteers are asked to senior fellow and dean of ers room and board and assist with is varied—from preparing mailings the Objectivist Academic includes a limited travel to supporting ARI writing projects. Occasionally Center , who reimbursement. ARI’s ARI will ask volunteers to assist with confer- presented a three-part summer internship program ences or other outside events. course on individ- includes automatic “The donation of a volunteer’s time can be ual rights, the law admission to the as beneficial as a monetary contribution,” said and capitalism. Clemson confer- ARI’s Human Resources/Legal manager Steve “Not many ence, a privilege Dougherty, who manages the volunteer pro- universities offer awarded this year gram. “The extra hands allow us to complete courses studying to Dakin Sloss and tasks faster and to better allocate our resources. capitalism and its Isabela Morales. In the Academic division, for example, volun- moral foundations,” “Attending the teers not only save us money but free our writ- said Dr. Ghate. “As conference offered ers to produce more content.” such, our principal Teachers and students at a past Clemson Institute summer conference continued on page 4 continued on page 4 Yaron Brook Speaks to Businessmen, continued from page 1 message. Every business has been affected by the economic downturn and many are looking for answers. Dr. Brook explains what caused the financial crisis, and he teaches a concrete, profit- oriented philosophy and methodology for getting out of the crisis.” The events themselves often lead to further speaking opportunities. This is especially true drudgery of an eighteen-hour workday of manual at events such as the recent Young Presidents’ How Businessmen labor for their barest subsistence, has released Organization conference in West Virginia, where them from famines, from pestilences, from the Dr. Brook delivered his lecture on the morality of Create Wealth stagnant hopelessness and terror in which most capitalism. Groups such as the YPO are composed Each month Impact suggests readings and other of mankind had lived in all the pre-capitalist of business leaders from different companies, resources for fans of Ayn Rand’s fiction who wish centuries—and in which most of it still lives, in meaning that Dr. Brook is speaking to individuals to learn more about her philosophy, Objectivism. non-capitalist countries.” in a direct position to buy training services. At every stage in the creation of wealth, “All companies, and new ones in particu- yn Rand held the honest businessman—the Ayn Rand wrote further, the businessman relies lar, tend to be quite interested in the notion of A man who achieved his wealth solely through on a primary tool: his intellect. establishing a corporate philosophy aligned with productive effort—in the highest esteem. She “Most people lump together into the same the ideas that lead to sustained profitability,” said wrote in Atlas Shrugged that the “self-made man category all men who become rich, refusing to con- Ms. Zinser. “The more Dr. Brook speaks to busi- . . . the American industrialist” was “the real sider the essential question: the source of the riches, nessmen, the more inquiries we receive.” maker of wealth, the greatest worker,” and else- the means by which the wealth was acquired. For more information about ARC’s custom- where praised American businessmen as the “Money is a tool of exchange; it represents ized leadership and corporate training programs source of America’s unequaled wealth. wealth only so long as it can be traded for mate- and seminars, contact Kara Devar at kdevar@ “America’s industrial progress, in the short rial goods and services. Wealth does not grow in aynrand.org. span of a century and a half, has acquired the nature; it has to be produced by men. Nature gives character of a legend: it has never been equaled us only the raw materials, but it is man’s mind that anywhere on earth, in any period of history. The has to discover the knowledge of how to use them. Yaron Brook’s Business Talks American businessmen, as a class, have dem- It is man’s thinking and labor that transform the Here are some of Dr. Brook’s recent business talks. onstrated the greatest productive genius and the materials into food, clothing, shelter or television July 8, 2009. Executive Team Training. Palo most spectacular achievements ever recorded in sets—into all the goods that men require for their Alto, CA. Dr. Brook discussed Objectivism as the economic history of mankind.” (“America’s survival, comfort and pleasure. it applies to business with Saxo Bank’s high- Persecuted Minority: Big Business,” Capitalism: “Behind every step of humanity’s long climb level managers, in conjunction with Stanford The Unknown ) from the cave to New York City, there is the man University’s custom executive education In the title essay of , who took that step for the first time—the man who program. Saxo’s senior executive team is Ayn Rand described the process by which the discovered how to make a fire or a wheel or an strongly influenced by Ayn Rand’s philosophy. businessman brings such wealth into being. airplane or an electric light. “The professional businessman is the field “When people refuse to consider the source June 9–10, 2009. Executive Team Training. agent of the army whose lieutenant-commander- of wealth, what they refuse to recognize is the fact Lebanon, NH. Dr. Brook discussed how to in-chief is the scientist. The businessman carries that wealth is the product of man’s intellect, of his develop an enduringly profitable corporate scientific discoveries from the laboratory of the creative ability, fully as much as is art, science, culture with the c-level management team of inventor to industrial plants, and transforms them philosophy or any other human value.” (“The an international digital mapping and navigation into material products that fill men’s physical Money-Making Personality,” Why Businessmen solutions company. needs and expand the comfort of men’s existence. Need Philosophy) May 28, 2009. Keynote Speech. Charleston, By creating a mass market, he makes these prod- For more of Ayn Rand’s writings on busi- WV. Dr. Brook presented a keynote speech ucts available to every income level of society. nessmen, see, in addition to the works already titled “Extreme Capitalism: The of By using machines, he increases the productivity cited, “What Is Capitalism?” in Capitalism: The Ayn Rand” to the Mountain State Chapter of the of human labor, thus raising labor’s economic Unknown Ideal and “An Answer for Business- Young Presidents’ Organization at the University rewards. By organizing human effort into produc- men” in Why Businessmen Need Philosophy, as of Charleston. tive enterprises, he creates employment for men well as “The Meaning of Money” in For the New May 22, 2009. Corporate Management Training. of countless professions. He is the great liberator Intellectual. All these items can be purchased Las Vegas, NV. Dr. Brook led an executive who, in the short span of a century and a half, from the Ayn Rand Bookstore. To order, please training seminar on the topic of corporate values has released men from bondage to their physi- visit www.aynrandbookstore.com or call 1-800- for the regional managers of a national company cal needs, has released them from the terrible 729-6149. headquartered in Texas.

BB&T Conference for Professors

The following is a guest column by Debi Ghate, year’s conference brought together fifty professors For returning attendees, we construct a pro- ARI vice president of Academic programs. (we were sold out!), deans, administrators and others gram that builds on the previous year’s discussion. for two days of intense discussion and networking. This year our focus was on values: how various In early June, the Ayn Rand The group is quite diverse. There are professors schools of philosophical thought approach the Institute and the Clemson In- who have just read Atlas Shrugged for the first time question of values, what it means to call values stitute for the Study of Capi- and long-time Objectivists. There are representa- “objective” and what the role of objective values in talism cohosted our fourth tives from the fields of philosophy, management, economics is. The bringing together of philosophy annual conference for BB&T marketing, economics and even theology. What and economics in these sessions sparked a vigor- programs. Thanks to the tire- they have in common is an interest in developing ous, highly intellectual discussion. As in past years, less efforts of John Allison, effective university programs to study capitalism this discussion continued well into the night, with chairman of BB&T Bank, and its moral foundations through Ayn Rand’s writ- new insights gained by ARI staff and BB&T pro- there are now fifty-nine pro- ings—principally Atlas Shrugged—and in contrast fessors alike. grams, mainly at universities in the southeastern to other schools of thought. Dr. Brook, Dr. Ghate, Dr. Eric Daniels of the , studying the moral foundations of The conference provides tracks for first-time Clemson Institute and Dr. Geoffrey Sayre-McCord capitalism and related topics in free enterprise, attendees and for returning participants. The new- from UNC Chapel Hill’s Department of Philosophy philosophy, management and business. Many of comers are introduced to Ayn Rand’s philosophi- led the returning-attendees sessions. Dr. C. Bradley these programs teach Atlas Shrugged, Capitalism: cal ideas, to her unique and moral defense of capi- Thompson, director of the Clemson Institute for The Unknown Ideal or other selections from talism and to some approaches about how to teach the Study of Capitalism, and BB&T’s John Allison Ayn Rand’s corpus. an eleven-hundred-page novel in a class where joined in for the Q&A. Mr. Allison, the impetus be- When we launched this conference in 2006, one literature is not the focus. Each year a number of hind the BB&T programs, gave two presentations: of our goals was to bring together the BB&T-sup- these professors leave the conference with a new introductory remarks at the opening dinner and a ported academics so that we could help them un- appreciation for why Ayn Rand’s corpus is worthy talk on the causes and cures for the financial crisis. derstand the depth, nature and scope of Ayn Rand’s of scholarly consideration, research and attention. The personal interest he took in the conference and ideas. We wanted to facilitate and participate in the This year the introductory sessions were led by in the participants was greatly appreciated by all. academics’ discussion of how to teach these ideas in ARI executive director Yaron Brook and ARI se- The consensus was that the event was both the college classroom. I’m happy to report that this nior fellow Onkar Ghate, among others. continued on page 4

2 Donor Takes Advantage of Temporary Legislation to Support ARI

ongtime Objectivist Edwin A. University of Maryland, highest tax rate. I have sufficient income from other L Locke has been a supporter College Park. He is sources, so I don’t really need the IRA money. If I of the since internationally known for have it transferred directly to ARI, the distribution its inception in 1985. He is also his research and writings on is tax-free. In fact, last year I transferred more than an Atlantis Legacy donor, having named ARI as work motivation and related the amount of my required distribution. the death beneficiary of his retirement plans and topics and has received “The Institute will get the IRA funds having made other provisions for the Institute in numerous scholarly awards. after my lifetime anyway; I like the idea of his estate plan. During his college years accelerating part of that gift now, when the Last year Dr. Locke took advantage of a in the late fifties, he read Institute needs the funds more urgently than Edwin A. Locke limited-time opportunity, made possible by and Atlas ever. More broadly, I support ARI as much as I congressional legislation, to contribute to ARI Shrugged in quick succession after seeing the can because in a fundamental respect, it is the through his Individual Retirement Account (see movie The Fountainhead. He knew he had most important organization in the world: the below for details), instead of giving stock or cash found the philosophy that would guide his life. success or failure of its mission will determine from other accounts as he customarily does. A frequent lecturer at Objectivist conferences, our long-term survival.” Dr. Locke, a member of the board of Dr. Locke is presenting an optional course on Dr. Locke is one of dozens of donors directors of the Foundation for the topic of introspection this month at ARI’s who have made contributions to the Institute Objectivist Scholarship, earned his PhD in annual summer conference. from their IRAs in recent years. These donors’ industrial organizational psychology in 1964 Dr. Locke said, “I have reached the age contributions have ranged in size from $100 from Cornell University. He is Dean’s Professor when the government forces me to start taking to $96,000. Can you follow their lead? Please (Emeritus) of Motivation and Leadership at distributions from my retirement plans whether I continue reading below to learn more about the the R. H. Smith School of Business at the want to or not—distributions that are taxable at my IRA opportunity.

The IRA Gift Opportunity

Were you born before July 1, 1939? Do you have If you meet the basic requirements, you may For more detailed information, including an Individual Retirement Account? If your answer find the IRA gift option especially attractive under a sample letter of instruction to your IRA to both questions is “Yes,” you may be able to the following circumstances: administrator and a detailed Q&A, visit save taxes by supporting ARI in 2009. www.aynrand.org/IRA. Some of the The Emergency Economic Stabilization • You do not itemize deductions on your questions answered include: Act of 2008 became law in October 2008. Of tax return. potential interest to qualifying ARI donors is • Your itemized deductions will be reduced • I do not itemize deductions on my tax one of the charitable giving incentives (extended because your income levels exceed IRS return. If I transfer funds from my IRA from the Pension Protection Act of 2006, which limits. to ARI, how do I achieve the tax savings? expired at the end of 2007) included in the bill: • You live in a state with a state income • I have already taken a distribution from For individuals who own IRAs and have reached tax that provides no tax breaks for my IRA in 2009. Is it too late to send that the age of 70.5, tax-free distributions to non- charitable gifts. money to ARI tax-free instead? profit organizations are possible until the end of • Your non-IRA contributions will reach the • The value of my IRA has dropped alarmingly 2009. (Before this legislation, most distributions annual charitable deduction limitation. due to the current financial crisis. Why are from traditional IRAs were fully taxable.) • You want to reduce the size of retirement you promoting this legislation? In addition to being tax-free, such distri- assets in your estate. • If my spouse has an IRA and has reached butions also count toward the IRA holder’s age 70.5, can both of us transfer up to annual Required Minimum Distribution. Please note: Further legislation last December $100,000 to ARI from our IRAs? And since there is no tax deduction involved (in the Worker, Retiree, and Employer Recovery • Why would I want to reduce the size of my —the distribution is simply excluded from Act of 2008) waived mandatory distributions from IRA by making a transfer to ARI? gross income—even those who do not itemize retirement plans during 2009. • Can an IRA gift to ARI help with estate deductions may be eligible. Here are the Because of this, donors whose motivation for taxes? requirements imposed by the legislation: making IRA gifts is to avoid the taxable income • I have already named the Institute as the generated by their required distribution may want death beneficiary of my IRA. Why donate • You must have reached the age of 70.5 to consider using other, perhaps more tax-efficient, from my IRA now? before making a charitable distribution from assets for their ARI support in 2009. • If I conclude that I want to take advantage your IRA. To summarize, IRA distributions are of the legislation, how do I go about • Distributions must be completed in 2009. normally taxable, and after age 70.5 IRA executing a transfer from my IRA to ARI? • Distributions must be from your traditional owners are normally required to take or rollover IRA (other retirement plans such minimum distributions—but currently If you do not have access to the Internet, ARI as the 40l(k), 403(b) and TIAA-CREF do there are exceptions to both of these rules: will send you a printed copy of the entire Q&A not qualify). (1) in 2009, IRA distributions to ARI are about the IRA opportunity. To request a printed • Distributions must be made to qualified tax-free; (2) in 2009, required distributions copy and/or to inquire further, contact Gift & organizations as defined in the legislation are actually not required. Regardless of #2, Estate Planning Manager Kathy Cross at 732-242- (for example, ARI qualifies, but the there may still be good for donors to 9408 or [email protected]. Anthem Foundation for Objectivist make distributions of IRA funds to ARI while Scholarship does not). they can do so without having to pay tax on • Distributions must be made directly to the such distributions. Note: ARI is committed to providing donors with Institute (not via a withdrawal by you). Will the legislation allowing tax-free accurate and authoritative information about chari- • Total charitable distributions from your transfers from IRAs be extended again, or be table contributions. However, we cannot render legal IRAs must not exceed $100,000 for the made permanent? As we go to press with this or tax advisory services. We urge donors to consult year; other than this limit, distributions issue of Impact, the answer is unknown. For your their own advisors regarding the tax and legal may be in any amount, even if the amount planning purposes, it is best to assume that this consequences of potential gifts. We are pleased to is more than, or less than, your Required opportunity will not be available after December work with donors’ advisors as well as our own to Minimum Distribution. 31, 2009. help ensure the best result for all concerned.

assertion, the notion continues to this day. In this “Ayn Rand Contra lecture addresses the reasons for this Friedrich Nietzsche” false association and explains why Rand is, in fact, TM one of Nietzsche’s greatest opponents. yn Rand has been characterized by intellec- “Ayn Rand Contra Friedrich Nietzsche” is books/audio/videos . . . for the rational mind TM A tuals as a follower of Friedrich Nietzsche available at the Ayn Rand Bookstore, along with since the publication of The Fountainhead in hundreds of other titles. Visit www.aynrandbook SPOTLIGHT ON THE BOOKSTORE 1943. Despite Ayn Rand’s repeated denials of this store.com or call 1-800-729-6149 to order.

3 The Value of ARI Volunteers, continued from ARI at Clemson Institute Student BB&T Conference for Professors, continued page 1 Capitalism Conference, continued from page 1 from page 2

Volunteers also find great value in helping me two great opportunities,” said Mr. Sloss, a valuable and enjoyable. As economics professor out. “Broadly speaking, doing volunteer work second-year student at Stanford University. “First, Dr. of George Mason University provides me with an ideal break from school I had the chance to listen to leading scholars on wrote to me, “I want to thank you for inviting me work,” said , a graduate student Atlas Shrugged and the moral foundations of to the conference. I thought the network of people and OAC student, who began volunteering at capitalism. Their lectures were extremely valuable was impressive, the talks were very informative and ARI in March. “Studying can become fairly because they helped me to further understand why thoughtful expositions of the moral foundations of isolating, with all the reading and papers that capitalism is the only moral political system—and the argument for capitalism, and the atmosphere it involves. When I volunteer, I get a chance also why other defenses of capitalism have failed. was very conducive to discussion and learning.” to interact with people, and I get to experience “I also enjoyed meeting and speaking We’re looking forward to doing the conference a different sense of accomplishment than I do with peers who share an interest in the study of again next year, with even more professors discuss- from receiving good grades. capitalism and Atlas Shrugged, in general. It was ing topics related to the moral foundations of capi- “Of course, the particular value offered invigorating to encounter interesting and exciting talism, Objectivism and how to teach these ideas from volunteering at ARI is that the people I like-minded individuals. Our discussions outside in the classroom. Ultimately, these professors are interact with share my values. Whatever I’m of lecture were an integral component of the con- directly responsible for the education of thousands able to do at ARI is meaningful to me, because ference experience.” of college students each year. ARI is happy to assist I’m helping, if only in a small way, to spread Ms. Morales, a second-year history major at them in bringing these ideas into the classroom in Objectivism in the culture.” the University of Alabama, was most apprecia- an effective way, and to learn from these specialists Erin Costino, another graduate student volun- tive of the gaps in her knowledge that were filled about how the ideas impact their fields of study. It’s teer, echoed those sentiments. “I respect Ayn Rand’s in by attending the conference. “The conference a crucial and worthwhile conversation. work and, by extension, the work of ARI,” she said. was intellectually and socially invigorating,” “I especially appreciate the fact that I’m able she said. “The professors were remarkable and to help during a time when discussion of Rand’s extremely accessible, and all of the students were work has increased so substantially.” bright and passionate about ideas. I learned about Volunteering can be an important means some important historical figures and events that of providing support to ARI for those who are in my college career have only been glossed over TM unable to contribute financially. “I tend to think or left out entirely. of it this way,” said Ms. . “ARI has “Like many of the other students I met at the many generous financial donors whose money conference, I have only a few friends at my uni- helps it achieve its goals. Presumably, these versity with whom I can discuss an idea like the donors enjoy contributing because they know morality of capitalism. In the course of a weekend, Radio that in doing so they are supporting their values. I became part of an entire network of students who Show on ARCTV Well, as a full-time student, I certainly cannot share my interest in ideas. Now we’re all friends afford to donate in this way; but when I have on Facebook, so even though the conference has The some extra time, it makes sense to me to spend ended, the discussion continues!” Leonard Peikoff it on what I value.” Other courses included “Ethics and Capi- Show If you are interested in volunteering for talism” with Eric Daniels (Research Assistant 1995–1999 ARI, contact Kate Sherwood at ksherwood@ Professor, Clemson Institute for the Study of aynrand.org. Capitalism), “History of Capitalism” with (Visiting Professor, Marist College) and “Economics of Capitalism” with Richard Ebeling r. Leonard Peikoff, the foremost (Senior Fellow, American Institute for Economic Dexpert on Objectivism, hosted a radio ARI Academic Division Research). Debi Ghate, ARI vice president of show from 1995 to 1999. Recordings Now Seeking Volunteers Academic programs, gave a presentation about of the Leonard Peikoff Show are now the Objectivist Academic Center and other ARI being re-released on ARCTV, a new Web site which publishes audio and video RI’s Academic division seeks volunteers student programs. recordings of ARC intellectuals, and with a specific interest in supporting the This was the third student conference on A related content. Institute’s writing and scholarship activities. We capitalism at Clemson. As in past years, a number “Although these shows were broadcast are interested in hearing from those who enjoy of attendees are students in the OAC. Attendees over a decade ago, they’re still relevant conducting research on a variety of topics, and received copies of Ayn Rand’s Capitalism: The to today,” said Yaron Brook. “Because who can assist us with indexing, proofreading, Unknown Ideal and The of Selfishness, and Dr. Peikoff discusses the root principles fact-checking and other skills related to producing Leonard Peikoff’s Objectivism: The Philosophy of underlying current events, his analysis ARI’s intellectual content. Those with an interest in Ayn Rand. Winners of a quiz on Atlas Shrugged, transcends the events he’s talking about. developing their own writing skills might especially one of whom was Ms. Morales, received copies of Whether he’s speaking about selfishness benefit from participating in these projects. We the newly published Essays ’s “Atlas or the O.J. Simpson trial, Dr. Peikoff’s look forward to hearing from you. Contact Kate Shrugged,” edited by Robert Mayhew. commentary remains as fascinating, Sherwood at [email protected]. insightful and important as the day it originally aired.” Dr. Peikoff currently produces a weekly, fifteen-minute podcast in which he answers questions about Objectivism and its applica- tion to the world. ARCTV will announce new podcasts as they become available on Borders, Waldenbooks Place Dr. Peikoff’s Web site, www.peikoff.com. Dr. Peikoff’s podcasts are also available on Atlas Shrugged Displays iTunes. s Ayn Rand novels continue to sell at a record pace, more and more bookstores are trying to tap A Impact is published monthly by the Ayn Rand® Institute (ARI) and is into that demand. complimentary to current donors who contribute $35 or more per year. Last month Impact reported on a new promotion For information on how you can support ARI and to learn about our projects, please visit our Web site: www.aynrand.org. Atlantis by Barnes & Noble which included placing 15" x 5' Legacy®, the Institute’s planned giving program, and related indicia displays of Atlas Shrugged and The Fountainhead in are registered trademarks. The Ayn Rand Archives is a special more than 2,000 bookstores across the United States. collection of the Ayn Rand Institute. Objectivist Conferences (OCON) and the Ayn Rand Bookstore are owned by Second Renaissance, This month, Impact is happy to announce that Inc., which is operated by the Ayn Rand Institute. Second Borders and Waldenbooks bookstores are following Renaissance, Inc., and the Ayn Rand Institute do not necessarily endorse the content of the lectures and courses offered. All photos suit. Displays of Atlas Shrugged can now be seen in of Ayn Rand are used by permission of the Estate of Ayn Rand. every Waldenbooks and Borders bookstore. The 326 Purchases from the Ayn Rand Bookstore do not qualify as Waldenbooks and 520 Borders displays feature 10,000 tax-deductible contributions to the Ayn Rand Institute. Editors: , Jeff Scialabba copies of the trade paperback edition and 3,000 copies Editorial Advisers: Dr. Yaron Brook, Mark Chapman, Debi Ghate, of the mass-market paperback. Anu Seppala, Lin Zinser Designer: Simon Federman Printing: David Antonacci Copy Editor: Donna Montrezza Headquarters: 2121 Alton Parkway, Suite 250 Irvine, CA 92606-4926 Phone: 949-222-6550 Fax: 949-222-6558 © The Ayn Rand Institute 2009. All rights reserved. Not to be reproduced without permission.

4 philosophy and plans to at- OAC Student Activism: Part II tend graduate school after completing his undergradu- This is part two of a two-part Ms. Hugel is a member of the ate degree. article highlighting activism OAC’s 2009 graduating class Last winter Mr. Tenney efforts by OAC students. and an editor of The Undercur- was awarded an OAC grant rent, an Objectivist newspaper to attend the American His- RI’s mission is to spearhead a cultural distributed at college campuses torical Association and the A renaissance toward a pro-, pro-indi- around the country (see part American Philosophical As- vidualism, pro-capitalist society. Such a renais- one of this article for more on Sam Tenney sociation annual conferences. sance, however, cannot come about by our efforts The Undercurrent). As part of the grant, he as- alone. If Ayn Rand’s ideas are to win their way Ms. Hugel recently sisted ARI in manning a display booth and hand- Lucy Hugel into the culture, ultimately it will be thanks to the submitted a revised version ing out materials on Objectivism and the Institute. efforts of the many individuals promoting and of an article she had written for the OAC’s Mr. Tenney was thrilled to discuss Ayn Rand with defending her ideas. Intermediate Writing course to the Harrisburg professional scholars and academics at the con- Ayn Rand explains how individuals can fight Patriot-News, a central Pennsylvania newspa- ferences, as his primary approach to activism is to change the culture in her essay “What Can One per with a circulation of 436,000. The article, “speaking to people one-on-one.” Do?,” reprinted in Philosophy: Who Needs It. “National service bill makes ‘volunteerism’ “I like to think about how and why people hold “The battle [for a better world] is primarily compulsory” (“Their title,” she notes) was pub- the ideas they do,” he said, “and I try to learn from intellectual (philosophical), not political,” she lished in late March. every discussion how I can present my unconven- writes. “If you want to influence a country’s intel- “My desire to get involved in intellectual tional ideas more effectively. lectual trend, the first step is to bring order to your activism grew largely out of my OAC course “Toward this end, I bring up philosophical own ideas and integrate them into a consistent assignments this year,” said Ms. Hugel. “Af- ideas in social situations regularly. As I’ve come case, to the best of your own knowledge and abil- ter several years of focusing on philosophy in to better understand and communicate Ayn Rand’s ity. . . . [W]hen you ask ‘What can one do?’—the general or on Objectivist philosophy in par- ideas through the OAC, these efforts have become answer is ‘SPEAK’ (provided you know what you ticular, this year’s classes presented us with the dramatically more successful.” are saying). . . . Speak on any scale open to you, challenge of communicating Objectivist ideas This method has led to a number of personal large or small—to your friends, your associates, to the general public. The comments and criti- relationships centered around philosophical dis- your professional organizations, or any legitimate cism I received have helped me understand cussion, noted Mr. Tenney. “These people tend public forum.” much more clearly issues such as respecting the to be intelligent and in intellectual fields—one is Last month, in the first part of this article, audience’s context, delimiting the topic, and a graduate student in psychiatry, another a recent Impact highlighted the activism efforts of presenting an argument that offers a clear, uni- law school graduate, another a professor of phys- Objectivist Academic Center students Doug fied theme. ics,” he said. “Helping them understand philoso- Altner, Amit Ghate and Ray Girn. These students “All of this is vital to communicating Ob- phy is intellectually stimulating and potentially exemplify the kind of approach advocated by jectivist ideas to a general audience. It’s very very productive. I have also maintained a small, Ayn Rand. They study in the OAC to develop satisfying to apply the philosophical knowledge informal discussion group, comprised of people their understanding of Objectivism, and then they I’ve gained through the OAC to analyzing cur- from a wide variety of backgrounds, that meets employ that knowledge in cultural activism. rent events, and it’s exciting to know that one’s regularly during the semester.” In part two of this article, we hear from writing or speaking can actually reach others and He added, “The OAC has been invaluable in two more OAC students who also advocate for make a difference.” my intellectual development. As a college student Ayn Rand’s ideas in the culture. receiving a full scholarship to the OAC, I would Sam Tenney has been reading Ayn Rand since like to thank the donors that so generously make Lucy Hugel works in the corporate communications high school. A former ARI intern, he will be this possible.” department of a national engineering and design entering his fourth year of the OAC next fall company. She holds a Bachelor of Arts degree in and his last semester of undergraduate school at For more information on the OAC, visit www English from Columbia University and is presently the University of North Carolina, Chapel Hill. .objectivistacademiccenter.org or contact oac@ working toward a Master of Arts degree in that field. Mr. Tenney is pursuing a Bachelor of Arts in aynrand.org. “Energy at the Speed of Thought: The Original Alternative Energy Market” By Alex Epstein The following article by ARC analyst Alex Epstein networks (from decentralized home solar generators engineered “green economy.” In a recent book, has been excerpted from the summer edition of The to a nationally centralized so-called smart grid). he enthusiastically quotes an investor who claims: Objective Standard (www.theobjectivestandard But each agrees that there must be a plan—that the “The green economy is poised to be the mother of .com), a quarterly journal of politics and culture government must lead the energy industry using its all markets, the economic investment opportunity which espouses the ideas of Ayn Rand. ARC ana- power to subsidize, mandate, inhibit, and prohibit. of a lifetime.”7 Friedman calls for “a system that lyst Thomas Bowden has an article in the And each claims that his plan will lead to techno- will stimulate massive amounts of innovation and same issue which is titled “Justice Holmes logical breakthroughs, more plentiful energy, and deployment of abundant, clean, reliable, and cheap and the Empty Constitution.” therefore a higher standard of living. electrons.”8 How? Friedman tells us that Consider Nobel Peace Prize winner Al Gore, The most important and most overlooked energy who claims that if only we follow his “repower there are two ways to stimulate innovation—one is issue today is the growing crisis of global energy America plan”—which calls for the government to short-term and the other is long-term—and we need supply. Cheap, industrial-scale energy is essential to ban and replace all carbon-emitting energy (cur- to be doing much more of both. . . . First, there is building and transporting and operating everything rently 80 percent of overall energy and almost 100 innovation that happens naturally by the massive we use, from refrigerators to Internet server percent of fuel energy)4 in 10 years—we would be deployment of technologies we already have [he farms to hospitals. It is desperately needed in the using stresses solar and wind]. . . . The way you stimulate undeveloped world, where 1.6 billion people lack this kind of innovation—which comes from learn- ing more about what you already know and doing electricity, which contributes to untold suffering fuels that are not expensive, don’t cause pollution it better and cheaper—is by generous tax incentives, and death. And it is needed in ever-greater, more and are abundantly available right here at home. . . regulatory incentives, renewable energy mandates, affordable quantities in the industrialized world: . We have such fuels. Scientists have confirmed that and other market-shaping mechanisms that create Energy usage and standard of living are directly enough solar energy falls on the surface of the earth durable demand for these existing clean power correlated.1 every 40 minutes to meet 100 percent of the entire technologies. . . . And second, there is innovation world’s energy needs for a full year. Tapping just a Every dollar added to the cost of energy is a that happens by way of eureka breakthroughs from small portion of this solar energy could provide all dollar added to the cost of life. And if something someone’s lab due to research and experimenta- of the electricity America uses. does not change soon in the energy markets, the tion. The way you stimulate that is by increasing And enough wind power blows through the cost of life will become a lot higher. As demand government-funded research. . . .9 Midwest corridor every day to also meet 100 per- increases in the newly industrializing world, led by 2 3 cent of U.S. electricity demand. Geothermal energy, China and India, supply stagnates —meaning ris- similarly, is capable of providing enormous supplies The problem with such plans and claims: Politi- ing prices as far as the eye can see. of electricity for America. . . . [W]e can start right cians and their intellectual allies have been making What is the solution? now using solar power, wind power and geother- and trying to implement them for decades—with We just need the right government “energy mal power to make electricity for our homes and nothing positive (and much negative) to show for it. plan,” leading politicians, intellectuals, and busi- businesses.5 For example, in the late 1970s, Jimmy Carter nessmen tell us. Of course “planners” such as heralded his “comprehensive energy policy,” claim- Barack Obama, John McCain, Al Gore, Thomas L. And Gore claims that, under his plan, our ing that it would “develop permanent and reliable Friedman, T. Boone Pickens, and countless others vehicles will run on “renewable sources that can new energy sources.” In particular, he (like many favor different plans with different permutations give us the equivalent of $1 per gallon gasoline.”6 today) favored “solar energy, for which most of the and combinations of their favorite energy sources Another revered thinker, Thomas L. Fried- technology is already available.” All the technology (solar, wind, biomass, ethanol, geothermal, occa- man, also speaks of the transformative power of needed, he said, “is some initiative to initiate the sionally nuclear and natural gas) and distribution government planning, in the form of a government- continued on page 6 5 Energy at the Speed of Thought, continued planning. Indeed, history provides us ample grounds from page 5 for optimism about the potential for a dynamic Consumption by Source and Sector, 2007,” energy market with life-changing breakthroughs— Energy Information Administration, U.S. growth of a large new market in our country.”10 because America once had exactly such a market. Department of Energy, http://www.eia.doe.gov/ Since then, the government has heavily For most of the 1800s, an energy market unlike emeu/aer/pecss_diagram.html. subsidized solar, wind, and other favored “alterna- any we have seen in our lifetimes existed, a market 5 “Al Gore’s Challenge to Repower America,” tives,” and embarked on grand research initiatives devoid of government meddling. With every pass- speech delivered July 17, 2008, http://www to change our energy sources—claiming that new ing decade, consumers could buy cheaper, safer, and .repoweramerica.org/about/challenge/. fossil fuel and nuclear development is unneces- more convenient energy, thanks to continual break- 6 Ibid. sary and undesirable. The result? Not one single, throughs in technology and efficiency—topped off  7 Thomas L. Friedman, Hot, Flat, and Crowded: practical, scalable source of energy. Americans get by the discovery and mass-availability of an alterna- Why We Need a Green Revolution—and How It a piddling 1.1 percent of their power from solar tive source of energy that, through its incredible Can Renew America (New York: Farrar, Straus and wind sources,11 and only that much because of cheapness and abundance, literally lengthened and and Giroux, 2008), p. 172. national and state laws subsidizing and mandating improved the lives of nearly everyone in America 8 Ibid, p. 186. them. There have been no “eureka breakthroughs,” and millions more around the world. That alterna- 9 Ibid, pp. 187–188. despite many Friedman-esque schemes to induce tive energy was called petroleum. By studying the 10 Jimmy Carter, “NATIONAL ENERGY them, including conveniently forgotten debacles rise of oil, and the market in which it rose, we will PLAN—Address Delivered Before a Joint such as government fusion projects,12 the “breeder see what a dynamic energy market looks like and Session of the Congress,” April 20, 1977, reactor,”13 and the Synfuels Corporation.14 what makes it possible. Many claim to want the http://www.presidency.ucsb.edu/ws/index Many good books and articles have been writ- “next oil”; to that end, what could be more impor- .php?pid=7372. ten—though not enough, and not widely enough tant than understanding the conditions that gave rise  11 http://www.eia.doe.gov/aer/txt/ptb0103.html read—chronicling the failures of various govern- to the first oil? 12 Richard Nixon, “Special Message to the ment-sponsored energy plans, particularly those * * * Congress on Energy Policy,” April 18, 1973, that sought to develop “alternative energies,” over  1 Robert Bryce, Gusher of Lies (New York: http://www.presidency.ucsb.edu/ws/index the last several decades.15 Unfortunately, the lesson PublicAffairs, 2008), p. 132. .php?pid=3817&st. that many take from this is that we must relinquish 2 Ibid, pp. 267­­–270. 13 Linda R. Cohen and Roger G. Noll, The hope for dramatic breakthroughs, lower our sights,  3 International Energy Outlook 2008. Technology Pork Barrel (Washington, DC: and learn to make do with the increasing scarcity “Highlights,” Energy Information The Brookings Institution), pp. 217–218. of energy. Administration, U.S. Department of Energy, 14 Ibid, pp. 259–313. But the past failures do not warrant cynicism http://www.eia.doe.gov/oiaf/ieo/pdf/highlights. 15 In this regard, I recommend Gusher of Lies by about the future of energy; they warrant cynicism pdf. Robert Bryce and The Technology Pork Barrel only about the future of energy under government  4 Annual Energy Review, “U.S. Primary Energy by Linda R. Cohen and Roger G. Noll. “The Businessmen’s Crucial Role: The Material Men of the Mind” By Debi Ghate

The following is excerpted from Essays on of the most efficient and productive steel mills in right decisions advance his long-term goal to Ayn Rand’s “Atlas Shrugged,” edited by Robert the country, Rearden had to undertake this inven- maximize his profits. He must put out a fire at his Mayhew. Page numbers in parentheses refer to tive effort while expertly overseeing all other mills and shovel coal if necessary in an emergency the 1999 Plume trade paperback edition. aspects of his business. In order to garner the rather than watch and direct the action from afar. greatest profit and reward from his mills, Rearden And, unfortunately, he must also deal with the Hank Rearden must continually identify or create new or larger Floyd Ferrises, the Wesley Mouches, the Paul Lar- Hank Rearden is an industrialist whose chosen markets for his Metal. He must envision new, kins and their collaborators, who not only distract purpose was to derive a new Metal from iron ore industry-advancing solutions for his customers’ him from his purpose but actively try to undermine that would outlast, outperform and outsell any manufacturing and engineering needs. For instance, it. Rearden, the industrialist, must personally and other material known to man. He had worked when Taggart Transcontinental wants to build a simultaneously respond to multiple demands and since the age of fourteen in mines, foundries, and new bridge using his Metal, Rearden sketches a pressures calmly, with focus, all while engaged mills, learning the industry from the mine shafts design that leads to a new method of construction, in the creative process of making Rearden Metal. up. By thirty, he owned the mine. He eventually at a fraction of the previously estimated cost—con- Hank Rearden is Rearden Steel. owned Rearden Ore, Rearden Coal and Rearden struction that takes into account the superior quality It was not easy; he experienced fatigue, frus- Limestone before opening Rearden Steel. Every of his Metal. He has just created a new market seg- tration and anger. He experienced occasional fail- stage of his career was an advancement over the ment of unlimited potential, with colossal profits as ure. But Rearden succeeded nevertheless. He was last; every advancement brought him closer to his his just reward. And his customers are now able to committed to a well-defined purpose, a purpose goal: Rearden Metal. As Rearden says to Francisco pursue new industrial endeavors more efficiently, that he knew had to be possible to achieve given d’Anconia, “To me there’s only one form of human leading them to increase their own production and his hard-acquired knowledge. He knew that the depravity—the man without a purpose” (148). wealth—leading them to place larger and more goal he set—a new, revolutionary Metal—would On the night that he finally pours the first heat frequent orders for his Metal. Rearden’s attitude is require a high level of sustained effort to attain. He of Rearden Metal, he reflects on what it took to summed up in his reply to Dagny, when she tells recognized that his mind and spirit were the only reach this day. It took him ten years to develop the him a story she once heard in school about the sun sparks he needed to keep himself going (30). Metal and “every inch of its course, every pound losing energy and growing colder and colder each In offering us Hank Rearden, Ayn Rand pres- of its pressure and every molecule within it, were year: “I never believed that story. I thought by the ents us with a business hero who proudly relies on controlled and made by a conscious intention that time the sun was exhausted, men would find a his mind in the relentless pursuit of his business— had worked upon it” (28). Rearden envisioned a substitute” (171). for the express purpose of making as much money world built and shaped by his Metal. He foresaw As an industrialist, Rearden must oversee the as possible. She presents us with a man who, what multitudes of applications would result if he design, construction and any expansion of the through his confident dedication to his purpose, succeeded in his quest—from kitchen knives to physical mills. What methods and efficiencies can offers the world a product, Rearden Metal, that has communication wire to airplanes. With his purpose he introduce to maximize production and continu- the potential to revolutionize industry, providing firmly in mind, Rearden spent years in research ously increase the output of his mills? Has he a wide range of new products at a cheaper price. laboratories in front of scorching ovens, poring hired the right employees to carry out the work? Through Hank Rearden, we see what intellectual over formulas on paper, testing material, learning What directions should he give his superinten- and physical effort must be invested to achieve from each failed attempt—reformulating, recalcu- dent during an attack on the mills? The more the this, and the overwhelming range of intermediary lating, reinventing and always reasoning, reason- mills produce, the more he produces; the more he decisions that rest on his judgment. When com- ing, reasoning—until the solution was found, produces, the more he sells; the more he sells, the bined together in a man like Rearden, a business until the day he could hold the cool Metal in his more he earns. How can he produce 600 tons of giant is born, the kind of man who changes the hands. Consider what this required: an integrated Metal a day on fewer furnaces compared to Orren world product by product. When Jim Taggart understanding of chemistry, physics, mathemat- Boyle’s 100 tons using many more furnaces? protests: “Rearden. He didn’t invent smelting and ics, engineering, metallurgy, among other fields. It Rearden is ruthlessly focused on squeezing the chemistry and air compression. He couldn’t have required the ability to conceptualize beyond previ- most production out of Rearden Steel, leading to invented his Metal but for thousands and thou- ously identified and readily accessible metals, and larger and larger profits. sands of other people. His Metal! Why does he to reconfigure existing materials into combinations But he does not take a short-term, pragmatic think it’s his? Why does he think it’s his inven- not previously thought of. It required an ability to view in generating those profits. He recognizes tion?” His future wife, Cherryl, asks, puzzled, persist in the face of failure. On the day his Metal that he must earn the loyalty of the kind of cus- “But the iron ore and all those other things were is poured for the first time, Rearden finds that his tomers he wants to deal with—those who will pay there all the time. Why didn’t anybody else make mind is still sharply focused on what had been his for his Metal and put it to the uses he had envi- that Metal, but Mr. Rearden did?” (262). Without ten-year goal: “The sight of the running metal was sioned. He must determine at what price to sell his him, there is no revolution in manufacturing. He still burned into his mind, filling his conscious- Metal so that his customers can afford it and will knows it, as does and his fellow strikers, ness, leaving no room for anything else” (34). return. He must hire and fire employees with vary- as do the looters who try to deny that a man like Yet, during that ten-year period, as the owner ing skills, from researchers to floor sweepers—the Rearden is a man of the mind. 6