Carol Baum, at Bloomberg, reads today’s news and finds herself living in a Rand novel.

Somewhere John Galt is smiling.

The hero of Ayn Rand’s “Atlas Shrugged” is smiling because he’s seen it all before: the government’s intervention in the private sector; the constraints placed on business in the name of the people; the desperation on the part of government bureaucrats when they realize their leverage is limited; and—this part is still fiction—the decision on the part of business leaders to walk away from the enterprises they built.

That’s all I could think about when I read that American International Group Inc., recipient of $173 billion in taxpayer funds, was paying out $165 million in bonuses to employees of its financial-products group, the poster boy for risk and greed.

The Obama administration, Congress and the public are outraged taxpayer dollars are going to enrich the folks who got us into this mess. So am I.

Members of Congress want to blame Edward Liddy, the former chief executive officer of Allstate Corp., who was recruited by former Treasury Secretary Hank Paulson in September to steer AIG away from the shoals.

Liddy is paid $1 a year for his efforts. “My only stake is my reputation,” Liddy said in a March 16 open letter to Treasury Secretary Timothy Geithner.

His only crime, as far as I can tell, is inheriting compensation contracts providing for retention bonuses for certain AIG derivative traders, some of whom have left the company, and listening to lawyers on his options. ...

I’m not alone in noting the parallels in the government’s evolving response to the financial crisis. For a year I’ve been waiting for Paulson or Geithner to announce “the John Galt Plan to save the economy,” which is right out of Rand’s novel.

It wasn’t until the AIG bonus brouhaha broke last weekend and I watched government officials flailing to contain the fallout that I realized the government is losing its leverage. Or maybe it never had any leverage to begin with.

Let me explain. The government has been propping up teetering financial institutions, including AIG, Citigroup and Bank of America, creating the illusion that the banks need the government.

The government doesn’t care about these institutions. It cares about the stability of the financial system: the totality, not the parts.

Congress can refuse to allocate more money to institutions in which it already owns a share (80 percent in the case of AIG). It can levy a tax on the AIG bonus payments or withhold them from the next $30 billion cash infusion, although who would notice? And it can install new management.

Why hasn’t the government put in its own people already? Maybe no one wants the job.

The government needs Liddy and Citigroup’s Vikram Pandit and Bank of America’s Ken Lewis to continue working to restore their firms to prosperity in the same way the looters in Rand’s novel need Hank Reardon and Francisco d’Anconia and Dagny Taggart, respectively, to run their steel mills, copper mines and railroad.

From their perches as chairmen of the House Financial Services Committee and Senate Banking Committee, respectively, Democrats Barney Frank and Chris Dodd fulminate about the lack of regulation and about inflated CEO compensation. For Dodd, it’s a good opportunity to deflect attention from his sweetheart mortgages from former Countrywide CEO Angelo Mozilo and his questionable real estate deal in Ireland.

All that’s left for life to imitate art completely is for these CEOs to quit. Let Barney Frank and Chris Dodd run AIG. Let’s see how they fare.

The government needs these companies to survive—and buy back the government’s ownership stake—more than they need the government. Most of these CEOs are already wealthy. They don’t need a job working for the government, which is what running a bank amounts to today.

What’s in it for them? One dollar of compensation? Their reputations? The house on the lake looks more appealing by the day.

Is anyone surprised sales of “Atlas Shrugged” have spiked in recent months as reality comes to resemble Rand’s fiction?

Everett Raymond Kinstler, Ayn Rand

Edward Cline observes that the left’s dishonest and temporary triumph is being marred by a stubborn dissent on the part of ordinary Americans armed with very different ideas, ideas having a great deal to do with a very thick novel published just over half a century ago.

The world seems to be emerging from a moral and intellectual coma, perhaps temporarily, perhaps permanently. It is discovering that other ideas have other consequences, as well, ideas that promote life, promote prosperity, promote ambition and personal success, and that they are possible only in political freedom, and that this freedom has been violated, abridged, and nullified by the first set of ideas. True, politics is the last thing to be affected by a philosophical revolution. But one cannot help but be pleased with how startled the collectivists and altruists are now by the knowledge that they have not successfully pulled a fast one on Americans. These Americans have come knocking on the doors of elitists or leaning over the café railings or invading their legislated smoke-free bars and restaurants to ask: What in hell do you think you are doing?

The Americans who recently protested the spendthrift policies of the Obama administration and Congress with “tea parties,” and who plan to protest them on an even larger scale in the near future, one can wager are not regular readers of The New York Times. They cannot have much in common with its columnists and editors, nor with the news media.

So the collectivist and altruist elite become very touchy when the people for whom they are “doing good” for their own sake, even to the point of enacting coercive and felonious legislation, exhibit signs of intelligence, resistance and anger. How dare these yokels!

And nothing raises their hackles higher than any mention of Ayn Rand.

Libertarian Randall Hoven, at American Thinker, sticks up for the social conservative trads.

I agree with him. The threat to liberty these days is not coming from bible thumpers. It’s coming from bien pensant liberals.

Social conservatism is taking a beating lately. Not only did it lose in the recent elections, it is being blamed for the Republican losses. If only the religious right would get off the Republican party’s back, the GOP could win like it is supposed to again. I beg to differ.

I’m anything but a social conservative. In nine presidential elections, I voted Libertarian in six. I am a hard core “limited government” conservative/libertarian; I want government out of my pocket-book and out of my bedroom. Concerning my religion, it’s none of your business, but I’m somewhere in the lapsed-Catholic-deist-agnostic-atheist spectrum; let’s just call it agnostic.

Having said all that, I have no problem with “social conservatives” or the “religious right” and their supposed influence on the Republican party. I base this not on the Bible or historical authority, but on the love of liberty and the evidence of my own eyes.

Who are the true liberty killers?

The most obvious point to me is that it is the do-gooding liberals who are telling us all what we can and can’t do. The religious right usually just wants to be left alone, either to home school, pray in public or not get their children vaccinated with who-knows-what. Inasmuch as the “religious right” wants some things outlawed, they have failed miserably for at least the last 50 years. Abortion, sodomy, and pornography are now all Constitutional rights. However, praying in public school is outlawed, based on that same Constitution.

Just think for a moment about the things you are actually forced to do or are prevented from doing. Seat belts. Motorcycle helmets. Bicycle helmets. Smoking. Gun purchase and ownership restrictions. Mandatory vaccines for your children. Car emissions inspections. Campaign ad and contribution restrictions. Saying a prayer at a public school graduation or football game. Trash separation and recycling. Keeping the money you earned. Gas tax. Telephone tax. Income tax. FICA withholding. Fill in this form. Provide ID.

For the most part, the list just cited is post-1960. Neither Pat Robertson nor James Dobson ever forced any of that on us.

Linn and Ari Armstrong, at the Grand Junction Free Press, issue a rejoinder to Alan Greenspan, John McCain, and Barack Obama on behalf of Ayn Rand and the Free Market.

Ayn Rand recognized a common pattern in the growth of political power: The enemies of liberty blame the free market for economic problems caused by government interference, then use those problems as a pretext for yet more political controls. Much of Rand’s prescient novel “Atlas Shrugged” revolves around that cycle.

Now Rand’s critics sound exactly like the villains of Atlas. They wouldn’t attack her if they didn’t recognize her as a barrier to their grand central plans.

Recently Alan Greenspan fueled the Rand hunt. In an Oct. 23 statement to a Congressional committee, Greenspan said he had “found a flaw” in his ideology of “free, competitive markets.”

There’s just one problem with Greenspan’s statement: He practiced no such ideology. For two decades, Greenspan served as chairman of the Federal Reserve, a central planning agency tasked with manipulating the money supply. Greenspan’s flaw is that he long ago abandoned the ideology of liberty.

Two decades before becoming a central planner, Greenspan, while still in association with Rand, warned of the dangers of the Federal Reserve. In a 1966 article, Greenspan noted that, in the late 20s, the “Federal Reserves pumped excessive reserves into American banks.” This “spilled over into the stock market — triggering a fantastic speculative boom.” Sound familiar? Greenspan became the monster he once warned against.

Today’s crisis centers around risky home loans. But were these loans made on a free market? No. Instead, they were encouraged, and in some cases mandated, by the federal government.

Both major candidates for president followed that stock line. While John McCain also blamed unspecified “corruption in Washington,” he emphasized the “greed and mismanagement of Wall Street.”

Barack Obama blamed greed and deregulation, despite the fact that nobody can point to the repeal of a regulation that could have caused the crisis. By contrast, the mechanisms by which government controls caused the crisis are clear.

Tired of government messing up your economy? Don’t want some Obamessiah spreading your wealth around? Feeling a little more anarchistic than usual? EconTalk has articles and a podcast on achieving autonomy by homesteading on the high seas.

Christopher Buckley has endorsed Obama.

This from the son of the man who wrote: “I’d rather entrust the government of the United States to the first 400 people listed in the Boston telephone directory than to the faculty of Harvard University.”

Neal Boortz, a conservative AM talk radio host (whose program I wish were featured on my local station) says: This speech has never been delivered at a college or a university. It was written to protest the fact that such an invitation has never been offered!

Now, I realize that most of you consider yourselves Liberals. In fact, you are probably very proud of your liberal views. You care so much. You feel so much. You want to help so much. After all, you’re a compassionate and caring person, aren’t you now? Well, isn’t that just so extraordinarily special. Now, at this age, is as good a time as any to be a Liberal; as good a time as any to know absolutely everything. You have plenty of time, starting tomorrow, for the truth to set in. Over the next few years, as you begin to feel the cold breath of reality down your neck, things are going to start changing pretty fast .. including your own assessment of just how much you really know.

So here are the first assignments for your initial class in reality: Pay attention to the news, read newspapers, and listen to the words and phrases that proud Liberals use to promote their causes. Then compare the words of the left to the words and phrases you hear from those evil, heartless, greedy conservatives. From the Left you will hear “I feel.” From the Right you will hear “I think.” From the Liberals you will hear references to groups—The Blacks, The Poor, The Rich, The Disadvantaged, The Less Fortunate. From the Right you will hear references to individuals. On the Left you hear talk of group rights; on the Right, individual rights.

That about sums it up, really: Liberals feel. Liberals care. They are pack animals whose identity is tied up in group dynamics. Conservatives and Libertarians think—and, setting aside the theocracy crowd, their identity is centered on the individual.

Liberals feel that their favored groups have enforceable rights to the property and services of productive individuals. Conservatives (and Libertarians, myself among them I might add) think that individuals have the right to protect their lives and their property from the plunder of the masses.

In college you developed a group mentality, but if you look closely at your diplomas you will see that they have your individual names on them. Not the name of your school mascot, or of your fraternity or sorority, but your name. Your group identity is going away. Your recognition and appreciation of your individual identity starts now.

If, by the time you reach the age of 30, you do not consider yourself to be a libertarian or a conservative, rush right back here as quickly as you can and apply for a faculty position. These people will welcome you with open arms. They will welcome you, that is, so long as you haven’t developed an individual identity. Once again you will have to be willing to sign on to the group mentality you embraced during the past four years.

Read the whole thing.

Hat tip to Bird Dog.

Charlotte Observer (3/23):

As a college student in Chapel Hill, John Allison stumbled across a collection of essays by Ayn Rand and was hooked by her philosophy of self-interest and limited government. As he rose over the decades to chief executive of BB&T, one of the country’s leading regional banks, Rand remained his muse.

He’s trying to replicate that encounter through the charitable arm of his Winston-Salem-based company, which since 1999 has awarded more than $28 million to 27 colleges to support the study of capitalism from a moral perspective. But on at least 17 of those campuses, including UNC Charlotte, N.C. State and Johnson C. Smith University, the gifts come with an unusual stipulation: Rand’s novel, “Atlas Shrugged,” is included in a course as required reading.

The schools’ agreements have drawn criticism from some faculty, who say it compromises academic integrity. In higher education, the power to decide course content is supposed to rest with professors, not donors. Debate about the gifts, which arose at UNCC this month, illustrates tensions that exist over corporate influence on college campuses.

UNCC received its $1 million gift pledge in 2005, but details about the “Atlas Shrugged” requirement came to light as the school dedicated an Ayn Rand reading room March 12.

“It’s going to make us look like a rinky-dink university,” UNCC religious studies professor Richard Cohen said Thursday after UNCC Chancellor Phil Dubois told the faculty council about the gift. “It’s like teaching the Bible as a requirement.”

Dubois, who learned of the book requirement this month, says it was ill-advised. He may ask Allison to reconsider it, he told faculty.

Allison has been surprised that the gifts can generate controversy. He says he simply wants students exposed to the late author’s ideas, which he believes the academic community has largely ignored. He welcomes opposing ideas.

He also points out that the schools approached the foundation, not the other way around.

Yale bent over backwards (as it were) to negotiate a deal allowing the administration to save face while accepting an alumni gift to endow a program of Gay Studies amounting to virtual advocacy. Ayn Rand’s philosophic views are hardly a less legitimate subject for academic study.

Caroline Baum points out the obvious alternative to the Bush Administration’s behavior in the face of the sub-prime mortgage meltdown: Just get government out of the way.

Fed Chairman Ben Bernanke encouraged mortgage servicers to write down a portion of the principal on home loans, which would give owners some equity and discourage foreclosure. He advocated a bigger role for the Federal Housing Administration, a Depression-era agency that insures mortgages. Congress envisions an even larger role for the federal government.

Any day, I expect some government official to unveil the John Galt plan to save the economy.

Galt, the hero of Ayn Rand’s magnum opus “Atlas Shrugged,’’ stops the world by going on strike. He and the “men of the mind’’ literally withdraw from the world after watching their wealth confiscated by the looters (the government).

Toward the end of Rand’s 1,000-plus page novel (or polemic), the economy is in shambles. Desperate, the looters kidnap Galt and prod him to “tell us what to do.’’

Galt refuses, or rather tells them “to get out of the way.’’

You probably can sense where I’m going. Today’s economic and financial crisis would resolve itself more quickly and efficiently if the government got out of the way. Yes, there would be pain. Some banks would fail. Others would clamp down on credit to atone for the years of lax lending standards. Homeowners-in-name-only would become renters. Housing prices would fall until speculators found value.

That’s not going to happen. The bigger the mess, the more urgent the calls for a government solution, the more willing government is to oblige.

We want laissez-faire capitalism in good times and a government backstop against losses in bad times. It’s a tough way to run an economy.

Roger Kimball responds to Hillary’s promise that “if she became president, the federal government would take a more active role in the economy to address what she called the excesses of the market and of the Bush administration.”

As Hayek observed, the socialist, the sentimentalist, cannot understand why, if people have been able to “generate some system of rules coordinating their efforts,” they cannot also consciously “design an even better and more gratifying system.” Central to Hayek’s teaching is the unyielding fact that human ingenuity is limited, that the elasticity of freedom requires the agency of forces beyond our supervision, that, finally, the ambitions of socialism are an expression of rationalistic hubris. A spontaneous order generated by market forces may be as beneficial to humanity as you like; it may have greatly extended life and produced wealth so staggering that, only a few generations ago, it was unimaginable. Still, it is not perfect. The poor are still with us. Not every social problem has been solved. In the end, though, the really galling thing about the spontaneous order that free markets produce is not its imperfection but its spontaneity: the fact that it is a creation not our own. It transcends the conscious direction of human will and is therefore an affront to human pride.

The urgency with which Hayek condemns socialism is a function of the importance of the stakes involved. As he puts it in his last book The Fatal Conceit , the “dispute between the market order and socialism is no less than a matter of survival” because “to follow socialist morality would destroy much of present humankind and impoverish much of the rest.” We get a foretaste of what Hayek means whenever the forces of socialism triumph. There follows, as the night the day, an increase in poverty and a diminution of individual freedom.

The curious thing is that this fact has had so little effect on the attitudes of intellectuals and the politicians who appeal to them. No merely empirical development, it seems—let it be repeated innumerable times—can spoil the pleasures of socialist sentimentality. This unworldliness is tied to another common trait of intellectuals: their contempt for money and the world of commerce. The socialist intellectual eschews the “profit motive” and recommends increased government control of the economy. He feels, Hayek notes, that “to employ a hundred people is … exploitation but to command the same number [is] honorable.”

Not that intellectuals, as a class, do not like possessing money as much as the rest of us. But they look upon the whole machinery of commerce as something separate from, something indescribably less worthy than, their innermost hearts’ desires. Of course, there is a sense in which this is true. But many intellectuals fail to appreciate two things. First, the extent to which money, as Hayek put it, is “one of the great instruments of freedom ever invented,” opening “an astounding range of choice to the poor man—a range greater than that which not many generations ago was open to the wealthy.”

Second, intellectuals tend to ignore the extent to which the organization of commerce affects the organization of our aspirations. As Hilaire Belloc put it in The Servile State, “The control of the production of wealth is the control of human life itself.” The really frightening question wholesale economic planning raises is not whether we are free to pursue our most important ends but who determines what those “most important ends” are to be. “Whoever,” Hayek notes, “has sole control of the means must also determine which ends are to be served, which values are to be rated higher and which lower—in short, what men should believe and strive for.”

Read the whole thing.

Hat tip to The Barrister.

Roger de Hauteville takes a vicious poke at the adolescent immaturity of libertarians like Ron Paul (and some other people I know). FitzJames Stephen would be proud.

Let me save you all some time.

Look, I know it’s amusing talking about Ron Paul! Ron Paul! is a blast. Everybody loves a verbal grenade rolled into excruciatingly dull settings. But politics is supposed to be dull. Politics was interesting in Russia in 1917, in Iran in 1979, in Venezuela last year… well, what I’m trying to tell you is you don’t want to “live in interesting times.”

Now, young persons and people in rent-controlled apartments that work at fair trade coffee shops can afford the luxury of talking about whether the American Civil War was a good idea. If you just got out of college, Ron Paul! is right up your alley. Why talk about today’s silly problems when Ron Paul! is arguing about whether we should abolish the Second Bank of The US? It’s so much more lively to talk about history, because it’s on the shelf and you can find any damn version of it you want to argue over. Real time isn’t indexed yet.

Ron Paul! is captivating to youngins because he’s like the reset button on Halo. You don’t have to live with your decisions in the context of your surroundings. If you charge into a nest of fiat currency economies or Brutes, Elites, and Grunts and get slaughtered, just start over! Instead of having to offer cogent and useful advice on how to move forward in contemporary life, you just mention that contemporary life shouldn’t be that way.

Read the whole rant.

The Alternative Energy Retailer quotes a source offering some trenchant criticism of the entire Alternative Energy movement.

Government incentive programs for adopting alternative energy are totally corrupt,” warns Alex Epstein, business analyst with the Ayn Rand Institute, based in Irvine, Calif. “They consist of expropriating the wealth of Americans, including energy companies that actually produce ample, affordable power, and using it to finance sources of energy that do not produce ample, affordable power – even, in some cases, after decades of subsidies. It makes no more sense than giving Americans liberal incentives to use horses and buggies instead of cars.”

For Epstein, the federal and state governments should play no role in advocating the American usage of alternative energy. He adds that using concerns over global warning to promote alternative energy is inappropriate.

“The purpose of government is the protection of the individual rights of all to their lives, liberty and property,” he says. “For government action to be justified in response to claims of global warming – the cause of today’s alternative energy infatuation – it must be scientifically demonstrable, in a court of law, that individuals’ burning of carbon fuels will do demonstrable harm to specific individuals through some sort of catastrophic change in weather. The state of evidence regarding global warming today is not even close to that. Even the highly politicized, highly speculative United Nations projections of a gradual, 8-degree-average warming over the next 100 years would be easily dealt with by industrialized people, who have sturdy houses, air conditioners, and sunscreen to cope with heat or bad weather, and ample time to migrate if necessary.”

Under the Objectivist viewpoint, alternative energy companies should sink or swim without any assistance from public funding. “If someone has a great idea for a new method of producing of energy, great – let them prove it in the free market,” continues Epstein. “If someone wants to make himself feel good by pretending that he is averting an apocalypse by using unattractive light bulbs, throwing away his clothes dryer, driving an overpriced car, buying carbon offsets from Al Gore, or spending a fortune on solar panels in a free country, he has a right to do so. But he has no right to demand that the government compel others to sacrifice for his unproven claims of doom.”

William Murchison has identified the candidate Republicans should be supporting in ‘08, and always.

I’ve just now figured it out — the right conservative candidate for these confused and disturbing times. I’m voting for Barry Goldwater, and nothing can stop me. Save — I admit — the inconvenience of Barry’s residence in a venue other than the land of the living.

Still, I want to suggest to perplexed conservatives sorting through the credentials of Romney-Huckabee-Giuliani-Thompson-Paul-McCain that no one matches in substance and appeal the man who, in our hearts, we knew to be right: Barry himself. I want to suggest this not by way of whomping up some sentimental pilgrimage back to ye olden tyme. I suggest Barry as a model for the principled conservatism so many seem to seek vainly and despondently. Those Republicans, for instance, who can’t figure out what the Republican message is or should be.

“The Republican Party,” asserts Rich Lowry of National Review, “has run out of intellectual steam and good ideas.” That’s a preposterous state of affairs. Good ideas, as opposed to useful legislative enactments, never decline in potency.

Our guy Barry knew as much. Our guy — whom Lyndon Johnson imagined he had disposed of in ‘64, only to find Barry’s ideas taking up more and more space in politics — knew clearly enough what he was about. Freedom was what he was about — “the maximum amount of freedom for individuals that is consistent with the maintenance of social order.”

Read the whole thing.

Mencius Moldbug had too much coffee again this morning, and has produced another of his incredibly lengthy, rambling and discursive, yet very clever postings, ranging happily over the intellectual landscape of libertarian theory and the history of the American Revolution this time.

Hat tip to Tim of Angle.

P.J. O’Rourke discusses, in the Weekly Standard, how it costs the US Government almost two cents to produce a penny.

The problem is the cost of zinc, which is what a “copper” is actually made of. For the past 25 years a penny-weight of copper has been worth considerably more than a penny. And we wouldn’t want our money to have any actual monetary value, would we? That would violate all of the economic thinking that has been done since the days of John Maynard Keynes. And it would give the Federal Reserve Bank governors nothing to do except sit around saying “oops” and “whoopee” every time the economy went down or up. Therefore the U.S. Mint began making pennies out of less expensive zinc with a thin plating of copper for the sake of tradition and to keep Lincoln from looking like he’d been stamped out of a galvanized hog trough. But then a rising commodities market drove up zinc prices. (Maybe China needs a lot of zinc for, oh, I don’t know, stabilizing the lead paint of Barbie dolls so that our girls don’t start beating their girls on math tests, or something.)...

Libertarians are only human. When we’re tired and stressed, we occasionally experience delusional hallucinations involving government—the kind Hillary Clinton should be medicated for at all times. But then comes the story about the penny costing two pennies, and we experience a sudden miraculous Hayekian, Misesean, Rose and Milton Friedmaniacal psychiatric cure. All my sane disgust at and mentally balanced distrust of the political process returned like—need I say it?—the proverbial bad penny.

Meanwhile in Indiana and Idaho, as the Washington Post reports,the federal government was busy eliminating the competition.

Federal agents on Thursday raided the Evansville, Ind., headquarters of the National Organization for the Repeal of the Federal Reserve Act and Internal Revenue Code (Norfed), an organization of “sound money” advocates that for the past decade has been selling a private currency it calls “Liberty Dollars.” The company says it has put into circulation more than $20 million in Liberty Dollars, coins and paper certificates it contends are backed by silver and gold stored in Idaho, are far more reliable than a U.S. dollar and are accepted for use by a nationwide underground economy.

Norfed officials said yesterday that the six-hour raid occurred just as its six employees were mailing out the first batch of 60,000 “Ron Paul Dollars,” copper coins sold for $1 to honor the candidate, who is a longtime advocate of abolishing the Federal Reserve. The group says it has shipped out about 10,000 silver Ron Paul Dollars that sold for $20 and about 3,500 of the copper $1 coins. But it said the agents seized more than 50,000 of the copper coins—more than two tons’ worth—plus smaller amounts of the silver coins and gold and platinum Ron Paul Dollars, which sell for $1,000 and $2,000.

“They took everything, all of the computers, everything but the desks and chairs,” the company’s founder and head, Bernard von NotHaus, said in a telephone interview from his home in Miami. “The federal government really is afraid.”...

“People are pretty upset about this,” said Jim Forsythe, head of the Paul Meetup group in New Hampshire, who said he recently ordered 150 of the copper coins. “The dollar is going down the tubes, and this is something that can protect the value of their money, and the Federal Reserve is threatened by that. It’ll definitely fire people up.”

Von NotHaus said agents also raided Sunshine Minting in Coeur D’Alene, Idaho, a company that makes the organization’s coins. He said agents seized huge pallets of silver and gold, worth more than $1 million, that the organization says back the Liberty Dollars.