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About Amit Varma

Amit Varma is a writer based in Mumbai. He worked in journalism for over a decade, and won the Bastiat Prize for Journalism in 2007. His bestselling novel, My Friend Sancho, was published in 2009. He is best known for his blog, India Uncut. His current project is a non-fiction book about the lack of personal and economic freedoms in post-Independence India.




Bastiat Prize 2007 Winner

Recent entries

Two States

This is the 9th installment of Rhyme and Reason, my weekly set of limericks for the Sunday Times of India…

The Impresario and the Intellectual

This is the 8th installment of Rhyme and Reason, my weekly set of limericks for the Sunday Times of India…

That Gender Card Again

Swarajya plays the gender card on behalf of Smriti Irani: The jokes on Smriti being handed textiles ministry, misunderstanding it…

Reshuffle

RESHUFFLE Smriti Irani spent quite a while Sending messages on her mobile Putting callers on hold Until she was told…

Politics and Money

This is the second of two limericks from the 7th installment of Rhyme and Reason, my weekly set of limericks…

01 November, 2009

Why Ayn Rand was a ‘Genuine Capitalist’

I am not a fan of Ayn Rand’s work: Her prose is mediocre and her novels are cheesy. Even though I agree with many of her beliefs, that is neither here nor there, as they weren’t original to her, and the brand of classical liberalism (or minarchist libertarianism) I believe in took off at least a century earlier than her. So I am never quick to defend Rand when she is being criticized. I’ll make an exception, though, for a recent piece on her in The New York Times by Adam Kirsch.

In his piece, a review of a biography by Anne C Heller, Kirsch relates how Bennett Cerf, the head of Random House, wanted to edit out Galt’s speech from Atlas Shrugged. Rand refused. Then:

Cerf offered Rand an alternative: if she gave up 7 cents per copy in royalties, she could have the extra paper needed to print Galt’s oration. That she agreed is a sign of the great contradiction that haunts her writing and especially her life. Politically, Rand was committed to the idea that capitalism is the best form of social organization invented or conceivable. [...]

Yet while Rand took to wearing a dollar-sign pin to advertise her love of capitalism, Heller makes clear that the author had no real affection for dollars themselves. Giving up her royalties to preserve her vision is something that no genuine capitalist, and few popular novelists, would have done. It is the act of an intellectual, of someone who believes that ideas matter more than lucre.

This is a strange comment, and I have two points to make:

One: Rand might well have agreed to the chop on commercial considerations alone. She might have calculated that the book would sell more copies if it included the speech, and that the extra royalties from those extra sales might offset the 7 cents per copy that she gave up.

Two: “Genuine capitalists” would look to serving their self interest as much as possible. But they need not view this in purely monetary terms. Rand might have placed a higher value on spreading her ideas in the world than on merely making money. It would then be entirely rational for her to accept a notional monetary loss for the sake of keeping a speech that many of her supporters today regard very highly. This is entirely consistent with being a capitalist.

The deal between Rand and Cerf was one between two private parties that involved no coercion. Both of them got what they wanted. It might even have ended in a double ‘thank you’ moment. How on earth could it non-capitalistic?

*

On a personal note, I regard myself as a capitalist as well. And pretty much all the important decisions I’ve made in the last few years have reduced my income vastly. First, I opted to give up a senior job in journalism to become a freelancer; and then, I opted to give up freelancing to focus on writing novels. In the short run,  this has decimated my bank balance. And yet, I have no regrets over these decisions—and they are not noble in any way. They arise out of sheer self-interest. I’m a greedy capitalist pig.

But Heller and Kirsch would probably think otherwise.

Posted by Amit Varma in Economics | Freedom | Small thoughts | WTF

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