In the last article “Should Teenagers Be Exposed to Objectivism, I pointed out that Timothy Sexton’s article “Warning: Your Teenager May Be Reading Ayn Rand” completely misrepresents Ayn Rand and Objectivism. Let’s see if he does better with his analysis of capitalism.
You may be wondering how he could possibly have a decent grasp of the marvelous social system of capitalism…since he doesn’t seem to recognize the benefits of Objectivism. Well, as we will soon see…like most social altruists and progressives he just doesn’t get it.
The Three Social Systems
Apparently, he doesn’t understand the difference between unhampered capitalism and government interventionism. Sadly, his ignorance of sound economic theory permeates our educational system. Establishment educators plant economic nonsense in the minds of teenagers. Imagine entering adulthood with an anti-capitalistic, anti-objectivist mentality. Soldiers of the Elite leave young people without the necessary intellectual weapons to succeed and prosper.
For his benefit, let’s define the three types of social systems.
Although there have been many “isms” to designate the various social systems that have existed throughout history, there are basically three—Capitalism, Socialism and Interventionism. We can place all the “isms” in one of these three categories.
Here they are.
- Capitalism is an economic concept of civilization that is based on the private ownership and control of the means of production.
- Socialism is a system of social organization that calls for public (state) ownership of the means of production. The totalitarian state owns everything and everyone’s life.
- Interventionism is the practice of government interference in the marketplace. The government legally hampers the market economy.
Here’s what Mr. Sexton says. “Capitalism combined with ethical egoism results in a decidedly immoral world that denies benefits to the consumer unless they also provide benefit to the producer; in many cases great demand is never met with supply because the cost outweighs the profit”.
Have you ever heard anything as absurd as this confused statement? If your teenager is force-fed that kind of nonsense…he will have a damaged mind.
First, in an unhampered market economy, a producer cannot earn profits unless he satisfies the consumers’ most urgent desires. If costs outweigh profits, it means the consumers prefer he produces a different product.
Here’s the way it is. Profits mean the producer is satisfying consumer desires. Losses indicate he’s defying the consumers’ most urgent desires. Now isn’t that plain and simple. Maybe not to the non-objective mind.
By the way, supply always has a tendency to meet demand in an unhampered market. When governments interfere with wages, prices and interest rates…supply and demand is bound to get unbalanced. Apparently, Mr. Sexton thinks it’s still a capitalistic system when governments manipulate the marketplace to satisfy special interests.
Mr. Sexton needs to face the facts. When governments manipulate wages, prices and interest rates, they are defying the consumers in order to benefit special interests.
He also stated “Capitalism combined with ethical egoism results in oil and auto industries acting in their own self-interests to collect enormous profits while holding back research into more affordable transportation for consumers.”
Now he would be truthful if he said “Government interventionism combined with altruism and irrational thinking results in certain industries acting in their own self-interests to collect enormous profits while holding back research into more affordable goods and services for consumers.”
Once again, he doesn’t get it. In an unhampered market, competition between free enterprise businesses drives profits down to cost of production plus the rate of interest. Only in a legally hampered market can industry make excess profits, without inviting intense competition from newcomers.
Do you get the idea that Mr. Sexton allows the negative emotion of envy to interfere with critical thought? That’s a solution for your teenager. Teach him the “virtues” of envy and unearned benefits.
We can assume he was thrilled to hear that General Motors suffered monumental losses. Maybe he’d also enjoy seeing the oil companies suffer enormous losses. Now that would really help the consumer.
Marriage Between the FDA and Big Pharma
This gets worse. He says “It also explains why pharmaceutical companies ignore diseases and illnesses experienced mostly by poor people who cannot afford medications created for profit.”
Doesn’t he understand that companies can only stay in business if they are profitable. Doesn’t he get the fact that needs are unlimited, but resources are scarce.
You know, I’m very sorry that many people can’t afford medical care. The marriage between the FDA and Big Pharma creates a bad situation for consumers in need. Unfortunately, it’s going to get much worse, since governments are intent on destroying economies with their heavy-handed government interventions in the marketplace. Since the political and financial establishment believes in every quack remedy imaginable, resources will become scarcer as productivity plummets. How do you feel about the horrors of Obamacare?
By the way, if he investigated the alliance of the FDA and the pharmaceutical companies, he might discover why the drug companies aren’t always responsive to the needs of people suffering certain diseases and illnesses. Of course, altruists and progressives possess a deep aversion to reality.
His final statement says it all. “As long as capitalism runs the global economy, ethical egoism in pursuit of profit will be the guiding principle, and as a result there can be no invisible guiding hand to provide extenuating benefits.”
Let’s change it so it becomes a true statement. “As long as big government interventionism runs the global economy, social altruism in pursuit of unearned profits will be the guiding anti-life principle, and as a result there cannot be an invisible guiding hand to provide productive individuals earned benefits.” In fact, the only hand that will be the visible is the heavy-hand of the government smacking down the market economy.
I encourage you to introduce Ayn Rand and Objectivism to your teenager(s). I read “Atlas Shrugged” when I was in my late 20’s. I think back and realize I would have been blessed if someone had introduced me to her works when I was a confused teenager.
RA Meyer – The Objectivist Warrior Masters the Social Maze