Starting with Capitalism

A common Objectivist view of history is that philosophy departments set the stage by promoting a certain view of metaphysics which then leads to a view of epistemology, ethics and politics. Ayn Rand's position on these four branches of philosophy is shown below. If this is indeed the process which determines history, then to change a culture we need more philosophy professors who promote objective reality and show how it leads inexorably to an acceptance of 1) reason as our only means of knowledge, 2) egoism—or rational self-interest—as our only guide to living a proper life, and 3) capitalism as the ideal system of government. This model, in fact, has been put into practice by the Ayn Rand Institute. I agree that this is one possible way to change a culture.

On the other hand, what if the process also works in reverse? A key point of Tracinski's "What Went Right" series is that by promoting capitalism, we are also promoting egoism, reason and objective reality, as shown below. It may even be that "Starting with Capitalism" is the more efficient method for changing the course of history.

For most Americans, philosophy is a game played by white-haired professors arguing about how many angels can dance on the head of a pin. Therefore, making a long argument starting from the axiom "existence exists" is not going to get the attention of most people. Americans are much more interested in how they can improve their lives, for instance by purchasing a new house or car, sending their kids to college, or even training for a new job and starting a new career. All of these things depend on a free market and capitalism. The ability to work harder and smarter and have that result in more money and more opportunities is very real to most Americans—much more real than the question of whether or not reality is objective.

But how does capitalism—a system where people are free to work and trade, and where property is protected by the law—promote the other branches of philosophy? Capitalism certainly promotes egoism because each individual is working for his own sake to improve his life and gain and/or keep his values, such as a fancy new car, a better life for his children, or a more fulfilling career. So capitalism encourages selfishness, but to actually be successful means being productive and that requires using ones brain to understand and manipulate things to make something useful for humans, which is another way of saying "to use reason." Finally, to successfully use reason to make or sell a product useful for humans, one needs to focus on the real world and solve real world problems. Businesses succeed by analyzing their market, planning to fill a niche, and executing on their plans rather than praying for success or endlessly chanting mantras. Capitalism requires egoism, reason and objective reality to the point that it becomes second nature to those who fully embrace it.

Having shown that capitalism promotes the proper views in the other branches of philosophy does not mean that all we need to do is to promote capitalism. The links are implicit but it is easy to get confused, especially when philosophy departments and their minions in the mass media and Hollywood are constantly attacking capitalism, egoism, reason and objective reality with false arguments and confusing rhetoric. There is still a need to explain to Americans who embrace the market economy that capitalism is the unknown ideal, that selfishness is a virtue and that reason is our only means to knowledge (in fact, these are three major books by Ayn Rand—follow the links). But perhaps we should start with capitalism, because the more people who are invested in the market economy, the easier it will be to demonstrate the links to the underlying philosophic principles of egoism, reason and objective reality.