Part 5

Capitalism

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by Ayn Rand | Oct 5, 2025
9 min read 1716 words
Table of Contents

The Founding Fathers were neither passive, death-worshipping mystics nor mindless, power-seeking looters; as a political group, they were a phenomenon unprecedented in history: they were thinkers who were also men of action. They had rejected the soul-body dichotomy, with its two corollaries: the impotence of man’s mind and the damnation of this earth; they had rejected the doctrine of suffering as man’s metaphysical fate, they proclaimed man’s right to the pursuit of happiness and were determined to establish on earth the conditions required for man’s proper existence, by the “unaided” power of their intellect.

A society based on and geared to the conceptual level of man’s consciousness, a society dominated by a philosophy of reason, has no place for the rule of fear and guilt. Reason requires freedom, self-confidence and self-esteem. It requires the right to think and to act on the guidance of one’s thinking—the right to live by one’s own independent judgment. Intellectual freedom cannot exist without political freedom; political freedom cannot exist without economic freedom; a free mind and a free market are corollaries.

The unprecedented social system whose fundamentals were established by the Founding Fathers, the system which set the terms, the example and the pattern for the nineteenth century—spreading to all the countries of the civilized world —was capitalism.

To be exact, it was not a full, perfect, totally unregulated laissez-faire capitalism. Various degrees of government interference and control still remained, even in America, as deadly cracks in the system’s foundations. But during the nineteenth century, the world came close to economic freedom, for the first and only time in history. The degree of any given country’s economic freedom was the exact degree of its progress. America, the freest, achieved the most.

Capitalism wiped out slavery in matter and in spirit. It replaced Attila and the Witch Doctor, the looter of wealth and the purveyor of revelations, with two new types of man: the producer of wealth and the purveyor of knowledge—the businessman and the intellectual.

Capitalism demands the best of every man—his rationality—and rewards him accordingly. It leaves every man free to choose the work he likes, to specialize in it, to trade his product for the products of others, and to go as far on the road of achievement as his ability and ambition will carry him. His success depends on the objective value of his work and on the rationality of those who recognize that value. When men are free to trade, with reason and reality as their only arbiter, when no man may use physical force to extort the consent of another, it is the best product and the best judgment that win in every field of human endeavor, and raise the standard of living—and of thought—ever higher for all those who take part in mankind’s productive activity.

In this complex pattern of human co-operation, two key figures act as the twin-motors of progress, the integrators of the entire system, the transmission belts that carry the achievements of the best minds to every level of society: the intellectual and the businessman.

The professional intellectual is the field agent of the army whose commanderin-chief is the philosopher. The intellectual carries the application of philosophical principles to every field of human endeavor. He sets a society’s course by transmitting ideas from the “ivory tower” of the philosopher to the university professor—to the writer—to the artist—to the newspaperman—to the politician—to the movie maker—to the night-club singer—to the man in the street. The intellectual’s specific professions are in the field of the sciences that study man, the so-called “humanities,” but for that very reason his influence extends to all other professions. Those who deal with the sciences studying nature have to rely on the intellectual for philosophical guidance and information: for moral values, for social theories, for political premises, for psychological tenets and, above all, for the principles of epistemology, that crucial branch of philosophy which studies man’s means of knowledge and makes all other sciences possible. The intellectual is the eyes, ears and voice of a free society: it is his job to observe the events of the world, to evaluate their meaning and to inform the men in all the other fields. A free society has to be an informed society. In the stagnation of feudalism, with castes and guilds of serfs repeating the same motions generation after generation, the services of traveling minstrels chanting the same old legends were sufficient. But in the racing torrent of progress which is capitalism, where the free choices of individual men determine their own lives and the course of the entire economy, where opportunities are unlimited, where discoveries are constant, where the achievements of every profession affect all the others, men need a knowledge wider than their particular specialties, they need those who can point the way to the better mousetrap—or the better cyclotron, or the better symphony, or the better view of existence. The more specialized and diversified a society, the greater its need for the integrating power of knowledge; but the acquisition of knowledge on so wide a scale is a full-time profession. A free society has to count on the honor of its intellectuals: it has to expect them to be as efficient, reliable, precise and objective as the printing presses and the television sets that carry their voices.

The professional businessman is the field agent of the army whose lieutenantcommander-in-chief is the scientist. The businessman carries scientific discoveries from the laboratory of the inventor to industrial plants, and transforms them into material products that fill men’s physical needs and expand the comfort of men’s existence. By creating a mass market, he makes these products available to every income level of society. By using machines, he increases the productivity of human labor, thus raising labor’s economic rewards. By organizing human effort into productive enterprises, he creates employment for men of countless professions. He is the great liberator who, in the short span of a century and a half, has released men from bondage to their physical needs, has released them from the terrible drudgery of an eighteen-hour workday of manual labor for their barest subsistence, has released them from famines, from pestilences, from the stagnant hopelessness and terror in which most of mankind had lived in all the pre-capitalist centuries—and in which most of it still lives, in non-capitalist countries.

It is on this fundamental division of labor and of responsibility that the intellectual has defaulted. His twin brother, the businessman, has done a superlative job and has brought men to an unprecedented material prosperity. But the intellectual has sold him out, has betrayed their common source, has failed in his own job and has brought men to spiritual bankruptcy. The businessman has raised men’s standard of living—but the intellectual has dropped men’s standard of thought to the level of an impotent savage. It has often been noted that mankind has achieved an enormous material progress, but has remained on the level of the primitive brute in spirit. (The solution usually offered is to abandon material progress.) The cause of the discrepancy is ignored or evaded. The cause is to be found at that crossroads of the post-Renaissance period where man’s physical existence and his philosophy broke apart and went in different directions.

Just as a man’s actions are preceded and determined by some form of idea in his mind, so a society’s existential conditions are preceded and determined by the ascendancy of a certain philosophy among those whose job is to deal with ideas. The events of any given period of history are the result of the thinking of the preceding period. The nineteenth century—with its political freedom, science, industry, business, trade, all the necessary conditions of material progress—was the result and the last achievement of the intellectual power released by the Renaissance. The men engaged in those activities were still riding on the remnants of an Aristotelian influence in philosophy, particularly on an Aristotelian epistemology (more implicitly than explicitly). But they were like men living on the energy of the light rays of a distant star, who did not know (it was not their primary task to know) that that star had been extinguished. It had been extinguished by those whose primary task was to sustain it.

From the start of the post-Renaissance period, philosophy—released from its bondage as handmaiden of theology—went seeking a new form of servitude, like a frightened slave, broken in spirit, who recoils from the responsibility of freedom. Descartes set the direction of the retreat by bringing the Witch Doctor back into philosophy. While promising a philosophical system as rational, demonstrable and scientific as mathematics, Descartes began with the basic epistemological premise of every Witch Doctor (a premise he shared explicitly with Augustine): “the prior certainty of consciousness,” the belief that the existence of an external world is not self-evident, but must be proved by deduction from the contents of one’s consciousness—which means: the concept of consciousness as some faculty other than the faculty of perception—which means: the indiscriminate contents of one’s consciousness as the irreducible primary and absolute, to which reality has to conform. What followed was the grotesquely tragic spectacle of philosophers struggling to prove the existence of an external world by staring, with the Witch Doctor’s blind, inward stare, at the random twists of their conceptions—then of perceptions—then of sensations. When the medieval Witch Doctor had merely ordered men to doubt the validity of their mind, the philosophers’ rebellion against him consisted of proclaiming that they doubted whether man was conscious at all and whether anything existed for him to be conscious of.

At this point, Attila entered the philosophical scene.

He longs to live on the perceptual level of consciousness, without the “interference” of any concepts, to act on the whim and range of the moment, without the “hampering restriction” of principles or theories, without the necessity of integrating one experience with another or one moment with the next—saw his chance to escape from his subservience to the Witch Doctor, which he had always resented (to muscle in on the racket, one would have to say), and to obtain from science the sanction of his actions and of his psycho-epistemology. Attila, who hated and feared intellectual issues, saw his chance to take over the intellect and found his voice.

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