The Moral CASE for Capitalism

the May 2007 / Volume 3, Issue 4 / the-undercurrent.com Undercurrent “It was as if an underground stream flowed through the country and broke out in sudden springs that shot to the surface at random, in unpredictable places.” Ayn Rand INSIDE THE MORAL case THIS ISSUE Freedom of Speech: foR caPitaLism An Interview with Dr. Achieving the good requires protecting freedom, Onkar Ghate not enforcing sacrifice. page 3 by Noah Stahl In Defense of Income It is widely acknowledged that capitalist countries are the most successful at Inequality creating wealth and raising their citizens’ overall standard of living. People page 7 who live in such countries enjoy access to bigger homes, better-trained doctors, more advanced technology, and higher paying jobs. By contrast, those living under collectivist systems like the European welfare states often Atlas Shrugged Essay endure long waits for poorer quality medical help and have far less choice in the things they buy and less money to buy them with. Studies like the Index of Economic Contest Freedom consistently find that higher measures of economic liberty correlate strongly with better page 7 standards of living: the freer people are, the richer they become. But in spite of all this, capitalism is criticized. Its detractors complain that it creates an unjust divide between rich and poor—or that employers don’t pay employees their rightful due—or that Speakers, Events, and the poor are “denied access” to basic needs like education, medical care, and retirement income. Meetings Even though the poor in capitalist countries enjoy far greater resources and opportunities than their counterparts in collectivist nations, critics denounce capitalism for allowing some people to page 8 (Continued on Page 2) OBJECTIVISM The Undercurrent’s cultural commentary Campus Commentary On Free Speech is based on Ayn Rand’s philosophy, University Mission Statements: False Objectivism. Objectivism, which animates Ayn Rand’s fiction, is a systematic Promises or True Commitments? philosophy of life. To achieve their mission, universities must consistently uphold and It holds that the universe is orderly defend the principle of free speech. and comprehensible, that man survives by reason, that his life and happiness comprise by Kelly Cadenas his highest moral purpose, and that he Colleges and universities are identified as institutions committed flourishes only in a society that protects his to the pursuit of knowledge and the promotion of free speech. A university trains its students to think critically and encourages active individual rights. debate among them. It is a place where students can forge their own In these pages we hope to defend these conclusions and voice their individual viewpoints without fear of censure or reprisal. It is a place where they can communicate, debate, values. To learn more about the ideas and persuade one another. behind them, you can begin by reading Ayn This commitment to truth and free speech is expressed clearly in mission statements and welcome letters from university presidents. Harvard University’s mission statement, for Rand’s books, such as The Fountainhead example, states that the university’s goal is to “[encourage] students to respect ideas and their and Atlas Shrugged, or by visiting free expression, and to rejoice in discovery and in critical thought.” aynrand.org. But universities are not consistent in their written promises and commitments. For many years, universities have implemented so-called “speech codes” to punish and suppress (Continued on Page 5) 2 they recognized that one is rightfully proper for every individual to act in his entitled only to what he earns or gains by own interest. Under capitalism every The Moral Case voluntary consent from others—success human being is left free to pursue and enjoy and happiness are to be sought and earned, whatever type of life he can achieve to the for Capitalism not expropriated from others by force. In extent of his ability and determination. CONTINUED FROM PAGE 1 this sense, no one is “left behind” under He is free to offer his values in trade for capitalism: every individual has the same those of others, voluntarily and to mutual have more than others. unrestricted freedom to pursue what he benefit. He is free to keep everything he Before considering the merits of these needs and wants. earns or give it all away, according to his charges, we must ask: what is capitalism? Criticism of capitalism stems from own uncoerced judgment. Most would say that capitalism is the ethical ideal of altruism, the idea that Under capitalism, the government’s synonymous with a free market of profit- morality consists of sacrificing for those in role is singular and crucial: the protection seeking companies. Although capitalism need. To selfishly pursue one’s own ends, of individual rights, i.e., of each man’s does institute free markets, the term on this view, is to shirk one’s moral duty to ability to act without being subject to fundamentally refers not to an economic others. Capitalism rebuffs this notion by physical force by others (or the threat system, but a political one. It is at root a upholding and protecting each individual’s thereof). Only such a system secures for system in which the government protects right to act in his own interests, in opposition everyone the freedom to direct their lives every citizen’s freedom to act in his own to those who demand he sacrifice his time, as they see fit—as such, it is the only moral interest. In practice, this means full freedom effort, wealth and happiness for others. social system. of action, so long as one’s actions do not The altruist morality is inherently anti- Yet capitalism is rarely defended on violate the rights of others. People are left capitalist because its implementation in moral grounds. Even conservatives, its free to pursue their chosen values, whether politics requires the violation of freedom. alleged supporters, do not defend its moral education, career, medicine, entertainment, Those who choose not to voluntarily goodness. Though they often advocate the hobbies, family, or none of the above—so sacrifice their interests for others must be free market as the most practical choice long as they respect the right of others to for creating wealth, their allegiance to do the same. In essence, capitalism is the religious altruism leads them to apologize system that existed in the free northern for capitalism’s implicit endorsement of states in the nineteenth century. (America self-interest. today is not a capitalist nation, but a system Under capitalism every Thankfully, there does exist a rational, mixing together elements of freedom and moral defense of capitalism in the works government control.) human being is left free of Ayn Rand. In her books and essays, Capitalism, in other words, is the particularly in Capitalism: The Unknown system where interacting voluntarily with to pursue and enjoy Ideal, you can find a detailed explanation your neighbors is the law. The use or threat of what capitalism is, the morality it is of force is legally forbidden. In any role— whatever type of life based upon, and which facts support doctor or patient, banker or customer, and validate that morality. And you can teacher or student, CEO or cashier—every he can achieve to the judge Rand’s case for claiming, in her individual enters relationships with others words, that “no politico-economic system by choice, not by threatening them with extent of his ability and in history has ever proved its value so his fists or his Senator’s power to pass eloquently or benefited mankind so greatly restrictive laws. determination. as capitalism”. Let us return then to the question of those “left behind” under capitalism. Noah Stahl, a recent graduate of Iowa Doesn’t everyone deserve an education, State University, works as software health care, and a basic income? Isn’t it forced to do so. engineer in St. Petersburg, Florida. unjust that some people get wealthy while If you don’t have children or wish to others have little? Shouldn’t we aim for a send yours to private school, opponents system that empowers the government to of capitalism say too bad—you must remedy such disparities? sacrifice your earnings to pay for the public Capitalism answers: no. There is only education of others. If you’d like to save one alternative to the capitalist model for your own retirement according to your of voluntary interaction—force. Every own judgment, too bad—you must sacrifice government policy that grants entitlements your income to pay for the retirement to some citizens does so, and must do so, income of others. If you’d prefer to spend by violating the freedom of others. To $40 a month on a gym membership rather entitle citizens to things like education, than pay taxes to Medicaid, too bad—you healthcare, or public transportation must sacrifice that “selfish” pleasure so necessarily requires forcing someone that others may have medical care. In to teach or treat or drive, or forcing these and a multitude of other cases, non- someone else (the taxpayers) to pay. In capitalist governments force you to submit other words, to establish the “right” to to the sacrificial code of altruism, whether education or healthcare is to establish the you agree and consent or not. “right” to the time, energy, and wealth Capitalism is the only social system of those who must supply such benefits. that abolishes forced sacrifice. It is based, When America’s Founding Fathers spoke not on the ethics of altruism, but on a of the right to the pursuit of happiness, morality of individualism, which holds rather than the right to happiness itself, that it is not only permissible, but morally 3 Freedom of Speech: An Interview With Dr.

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