Contrasts Capitalism and Collectivism

1. Problem Definition
Is Man Free?
Yes No
Capitalism and Egoism Versus Collectivism and Altruism
Definition Definition
Collectivism is a political system
Capitalism is a political system based on government control of the
based on the recognition of economy, which holds that man’s life
individual rights, including and work belong to the state and that
property rights, in which all the state may dispose of him for the
property is privately owned. sake of whatever it deems to be the
“good”.
The Political Expression of The Political Expression of
Egoism - the moral code that Altruism - the doctrine which
holds that it is right for man to demands that man live for others
live for his own sake, and not for and put the interests of others
the sake of society. above his rational self interest.
What Principles are Manifested ?
The purpose of law and of government is the The government’s over-riding concern is the
protection of individual rights. protection of the personal power of its leaders.
The three broad categories of the proper functions Any constitution that exists is subjective and
of government address the issues of physical force unenforceable in the absence of the balance of
and the protection of men’s rights: the police, to powers found in separate branches of government.
protect men from criminals, the armed services, to The citizens must depend on the good will and
protect men from foreign invaders, the law courts, motives of its tyrants, whether single dictators or
to settle disputes among men according to majority rule.
objective laws.
Controlled economies cannot determine how to price
A complex legal system, based on objectively valid goods and services, thus causing increasing
principles, must be implemented to make a society shortages in goods and services available to the
free and to keep it free. people.
The constitution is a limitation on the government, The government is free to do anything that it wants to
not on private individuals. It prescribes the conduct do, while the people must have permission to do
of the government, not of the people. It does not anything.
grant the government power, but protects the
people from the government.
From Capitalism the Unknown Ideal
Page 1 of 1 by Ayn Rand