(Response challenging my views being opposite the lessons of Atlas Shrugged)
I don’t see it that way. I am a pretty pure capitalist. I support Milton Friedman’s ideas about school vouchers to maximize privatized education. I never supported Obama’s plan to control CEO pay. In my MBA classes I was one of the few students to oppose CEO pay regulation, as compensation is a market function. I even work for one of the largest corporations in the world which provides a lesson everyday about supply and demand. I think government subsidies for corporations are anti-capitalistic. I thought that the American car companies should fail. I think unions have outlived their purpose and are the major cause of the auto company’s demise (and airlines). I think minimum wage laws are useless and unnecessary and I disagree when Democrats push regulatory legislation. I think the Federal Reserve is what allowed banks to undertake excessive risk with minimal consequence. If the Philadelphia bank in the 70’s, the Savings and Loan bank in the 80’s, and other large banks in the 90’s were allowed to fail, it would have sent a clearer message to manage risk this past decade, instead of embrace it. I don’t think it’s possible for a company to make too much money. This includes drug companies, as profit drives innovation.
However, there are times when I see conflicts between capitalism and the best interests of society. Healthcare is one example. The interest of shareholders does not align with the interests of the people. I see insurance companies as one of the most wasteful corporate entities, being fed by taxpayer dollars, and supported by legislation to stifle competition, creating a high barrier to entry. Tell me how this plays into a free market belief? I also find it absurd that the largest buyer of drugs pays the highest price driven by legislation making negotiation illegal. Tell me how that is capitalistic? (By the way, I have enormous respect for your brother who bucked party lines to vote against the Republican monstrosity healthcare bill. The Medicare 2003 bill is perhaps one of the most detrimental pieces of legislation to ever come out of Congress. A one trillion dollar entitlement program over ten years?! And the right calls Obama a socialist!)
Remember that Ayn Rand was a Russian immigrant seeing firsthand the problems with communism. It was the Russian Government that taught her how destructive anti-capitalistic models are, and drove her motivation to push ideas on capitalism. I don’t think anyone would question Greenspan’s dedication to free markets, but even he saw a flaw with the current capitalistic model stating that he had made a “mistake in believing that banks, operating in their own self-interest, would do what was necessary to protect their shareholders and institutions.” Greenspan called that “a flaw in the model that defines how the world works.” This contradicts Adam Smith. This also demonstrates to me that Ayn Rand needs some revision.