Sales of "Atlas Shrugged" Soar in the Face of Economic Crisis

Sales of “Atlas Shrugged” Soar in the Face of Economic Crisis

Washington, D.C., February 23, 2009–Sales of Ayn Rand’s “Atlas Shrugged” have almost tripled over the first seven weeks of this year compared with sales for the same period in 2008. This continues a strong trend after bookstore sales reached an all-time annual high in 2008 of about 200,000 copies sold.

“Americans are flocking to buy and read ‘Atlas Shrugged’ because there are uncanny similarities between the plot-line of the book and the events of our day” said Yaron Brook, Executive Director at the Ayn Rand Center for Individual Rights. “Americans are rightfully concerned about the economic crisis and government’s increasing intervention and attempts to control the economy. Ayn Rand understood and identified the deeper causes of the crisis we’re facing, and she offered, in ‘Atlas Shrugged,’ a principled and practical solution consistent with American values.”

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Yaron Brook is executive director of the Ayn Rand Center for Individual Rights. Dr. Brook is often interviewed on radio and is a frequent guest on a variety of national TV shows, having appeared on the new Fox Business Network, FOX News Channel, CNN, CNBC and C-SPAN. Dr. Brook, a former finance professor, lectures on Objectivism, capitalism, business and foreign policy at college campuses, community groups and corporations across America and throughout the world.

To interview Dr. Brook or book him for your show, please contact media@aynrandcenter.org.

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Let Bankruptcy Courts Take the Wheel

General Motors, having sucked up $9.4 billion of taxpayer cash since Christmas, now desperately craves the remaining $4 billion authorized by President Bush for disbursement in February.

And come March, once that new money has disappeared down the Detroit drain hole, renewed pleas for aid will undoubtedly land on President Obama’s desk. Will the new chief executive emulate Bush, bowing to the anti-bankruptcy sentiment fomented by Rep. Barney Frank, chairman of the House Financial Services Committee, and others who advocate bailing out the Detroit automakers? Or will he let the bankruptcy courts take charge?

“There’s only one thing you can do in bankruptcy that you can’t do outside of bankruptcy–break your word, break your deals,” said Frank in a “60 Minutes” interview. “It allows you to say to the small businesses who have been catering lunches for you, ‘sorry, we’re not paying you.’ It allows you to go to the workers and say, ‘sorry, we’re not paying you.’”

Really? So bankruptcy is a get-out-of-jail-free card that allows treacherous companies to escape payment obligations they would otherwise have to honor? Sorry, Mr. Frank, but that’s a fantasy.

Plodding behemoths like General Motors are not even eligible for bankruptcy until they’ve become insolvent, which means they already can’t pay their bills and have no prospects for recovery. What bankruptcy does is treat the victims of those broken deals fairly–by preventing the bankrupt company from playing favorites among unpaid creditors, and by giving those creditors a big say in the distressed company’s future.

If an automaker can return to profitability by streamlining products, cutting staff, or closing plants, a bankruptcy judge can allow a reorganization. But a company that’s hopelessly floundering may have to be liquidated through an orderly sale of assets, with income paid to creditors according to their existing contract rights.

Yes, Mr. Frank, some creditors walk away from a bankruptcy empty-handed, or collect only pennies on each dollar of debt. Caterers, assembly-line workers, material suppliers, landlords–everyone who does business with a company in a market economy assumes a risk of nonpayment. But that needn’t spell disaster if creditors take steps in advance to confine the pain of bankruptcy within reasonable limits. Wise businessmen check on credit histories, set limits on outstanding balances, and register liens on hard assets. Even unions can protect their members, such as by having pension funds placed in trusts sheltered from bankruptcy proceedings.

Under bankruptcy, the risk of financial loss stays right where it belongs, on those who assumed the risk of non-payment by voluntarily dealing with a badly managed company. But in Barney Frank’s bailout universe, Congress can simply paper over the reality of business failure by shifting those losses to taxpayers, competitors, and consumers–in short, everyone who doesn’t deserve to pay.

This means that if GM’s caterers don’t get paid for the hors d’oeuvres served to CEO Rick Wagoner and his team of corporate bailout beggars, you and I must foot the bill. And if UAW members fear losing the staggeringly high wages and benefits they’ve extorted over decades using pro-union legal privileges, society must ride to their rescue.

But shifting the financial pain of business failure onto society at large is unjust. Most obviously, taxpayers shouldn’t be forced to prop up failing companies’ balance sheets. But other victims abound. Think of the profitable competitors with hard-earned credit standings, watching with justified resentment as badly managed rivals line up at the public trough.

Consumers, too, pay a price for bailouts. Bailed-out firms flood the market with inferior products–GM cars, anyone?–by continuing to own assets that would have gone to making more desirable products if market forces had ruled. Just picture today’s city streets if the horse and buggy industry had been bailed out a century ago.

Is General Motors to become a brain-dead patient in a Federal bailout ward, languishing on tax-funded life support beyond all hope of recovery? Not if Congress steps aside and lets the bankruptcy courts do justice through adjudication.

Ayn Rand Institute Now Offering Impact Newsletter Free on the Web

The Ayn Rand Institute is pleased to announce that its Impact newsletter is now available electronically to Web visitors. Beginning with the January 2009 issue, ARI’s Web site will now offer all of its Impact issues online as PDF documents.

Impact, which remains available in a print edition for ARI donors of $35 or more each year, delivers the latest news and progress reports on ARI’s programs, along with interviews of Objectivist intellectuals and monthly highlights of different aspects of Ayn Rand’s philosophy.

The new, free electronic format will serve as an excellent way of introducing newcomers to ARI’s goals and programs. Additionally, visitors may now view a three-part introductory video on ARI’s home page, which provides information about Ayn Rand, Objectivism, and the Ayn Rand Institute.

» View ARI’s Impact newsletter online

Watch and Learn from Hugo Chavez

Washington, D.C. – Venezuelan dictator Hugo Chavez has halted construction of a private shopping mall in downtown Caracas as a first step toward confiscation. “We’re going to expropriate that and turn it into a hospital–I don’t know–a school, a university,” said Chavez on his weekly radio show.

“Americans can learn an important lesson from the spread of socialism in Venezuela,” said Thomas Bowden, an analyst at the Ayn Rand Center for Individual Rights. “What is Chavez counting on when he grabs a private building and vows to make it into a hospital, school, or university? He’s counting on his listeners to excuse the seizure of private property because a higher moral purpose is supposedly being served.

“Chavez is relying on the fact that socialism embodies the world’s moral ideal of individual sacrifice for the ‘common good.’ History has taught him that no opponent will denounce that ideal. And so he climbs to the moral high ground, turning his back on socialism’s dismal historical record of economic decline, lost freedoms, and human misery.

“As long as the moral ideal of self-sacrifice remains unchallenged, socialism will continue to spread–not only in the third world, but in America as well.

“There is a rational alternative. It’s laissez-faire capitalism, which upholds the individual’s moral right to live and work for his own sake, not society’s. But to establish freedom we must dig up the moral roots that continue to nourish socialism worldwide.”

How to Stop the Next Madoff

Washington, D.C.–“Want to stop the next Madoff? Gut the SEC,” says Yaron Brook, executive director of the Ayn Rand Center for Individual Rights.

“Part of the reason Madoff’s misdeeds went undetected is that the Securities and Exchange Commission spends most of its time doing things the government has no business doing. The only legitimate job of a securities law enforcement division is to protect investors against the specific crimes of theft, fraud, and breach of contract.

“But the SEC plays a much different role. Its mandate is to attempt to make investing ‘safe’ by controlling every aspect of financial markets, from dictating the composition of mutual fund boards to mandating public release of executive compensation numbers that shareholders want kept private to determining when executives are allowed to sell stock–‘insider trade’–instead of leaving that to the discretion of a company’s owners.

“In pretending to guarantee to investors that their investments are sound, which is impossible, the SEC encourages the kind of blind group-think that characterized the Madoff investors. And with the SEC devoting itself to a sprawling array of elaborate witch-hunts, such as the ‘insider trading’ case against Mark Cuban, what time or attention does it have for real fraud?

“The answer–as is clear from the fact that a 29-point, 17-page report on Madoff, submitted in 1999, 2001, and 2005, entitled The World’s Largest Hedge Fund is a Fraud slipped through its cracks–is none.”

 

Let Airlines Decide Who Boards Their Planes

Washington, D.C.–A 29-year-old Middle Eastern man who insisted on occupying the window seat closest to the cockpit while wearing a T-shirt saying, in Arabic and English, “WE WILL NOT BE SILENT,” has been paid $240,000 to drop his discrimination lawsuit. Raed Jarrar had sued JetBlue and two federal security officers for having made him cover the T-shirt and sit in the rear of the plane, to mollify passengers who felt threatened.

“It’s an injustice when a private airline is penalized for exercising its rights as an owner,” said Thomas Bowden, an analyst at the Ayn Rand Center for Individual Rights. “Property owners are entitled to set standards for conduct, including dress codes, that their customers must observe when using company property. If a potential customer finds those standards unreasonable, he is free to take his business elsewhere.

“Here, JetBlue should have been legally entitled to forbid Mr. Jarrar from frightening other passengers aboard its privately owned jetliner. In deciding the matter, JetBlue had a right to consider that Mr. Jarrar’s behavioral and physical profile resembled that of terrorists who have left a trail of blood and bone across the globe, both before and after destroying the World Trade Center with hijacked airliners in 2001.

“Now, however, Mr. Jarrar is a quarter-million dollars richer because our anti-discrimination laws forbid businesses to use their own judgment in these matters.”

Bush’s Pro-Democracy Strategy Is Pro-Terrorism

Washington, D.C. – The acts of war by Hamas against Israel are precisely what people should expect from Bush’s so-called democracy strategy in the Middle East.

The administration campaigned for elections in the strongholds of various Islamist groups such as Hamas and Hezbollah, groups that it should have worked to destroy. In the Palestinian territories, Bush insisted that Hamas be allowed to participate in the 2006 elections–and the jihadist group won a landslide. Thanks to that political victory, Hamas gained an unearned legitimacy for its vicious war to exterminate Israelis and Westerners. Winning power with the aid of their enemy confirmed for these Islamists that the West will abet its own destroyers.

America’s self-defense entails crushing Islamic totalitarianism–not ushering its jihadists into political office and galvanizing them to redouble their war against us.

Open the Borders, End the Housing Glut

Washington, D.C. – As the housing glut continues to send home prices spiraling downward, leaving millions of homeowners unable to unload houses they can’t afford, Washington is debating ways to address the oversupply of housing.

“This crisis was caused by government intervention into the economy, yet every proposal to fix the housing market involves more power for Washington,” said Yaron Brook, executive director of the Ayn Rand Center for Individual Rights. “Instead of more government distortion of markets, we should be looking for ways to get the government off our backs. That will require us to think outside the box, so here’s one–admittedly radical–suggestion to get us started: free up immigration.

“At a time when Americans are suffering from an oversupply of housing, it is tragic that the government continues to forcibly prevent millions of peaceful people around the globe from bringing their wealth, talent, and ambition to this country.

“Imagine if the number of annual immigrants increased from around 650,000 a year to, say, five million. Virtually overnight we would see money pour into the American real estate market, as millions of new businessmen and workers bought and rented homes. Not only would this eliminate the oversupply of houses, we would enjoy the broader, long-term economic benefits of welcoming legions of highly skilled and motivated individuals into the American economy.”

Ending Piracy Should be a U.S. Government Priority

Washington, D.C. – “It is unbelievable that one of the top news stories, today in the 21st century, is that pirates are seizing ships, cargo and people off the high seas,” said Yaron Brook, executive director of the Ayn Rand Center for Individual Rights.

“The Gulf of Aden is a major international shipping route. The Somali pirates are snatching cargo destined for all corners of the globe. To the extent that American commercial interests are being impacted, the U.S. government should immediately and decisively secure the shipping route by whatever military means necessary. Why have a navy if not to safeguard the rights of Americans to participate in and benefit from trade on the high seas?

“The American government should act swiftly: the ransom money collected by the pirates is at least in part being filtered to Islamic totalitarian groups, which have openly declared ‘Death to America.’ Our failure to act is providing additional strength to our known enemies.”

The Left and the Right vs. Free Speech

Washington, D.C.–Calling for a return of the Fairness Doctrine, Senator Chuck Schumer noted that some of the same people who oppose such “equal time” mandates support restrictions on broadcasting they deem offensive. According to Don Watkins, a writer for the Ayn Rand Center for Individual Rights, “Schumer’s comments highlight an ominous fact: that both the left and the right are opponents of free speech.

“Conservatives have long supported the FCC’s war on so-called indecency, arguing that broadcasters should not have the right to engage in ‘offensive’ speech. The liberals, meanwhile, have been eagerly trying to resurrect the so-called Fairness Doctrine, which would allow the government to dictate which ideas deserve how much airtime, and lead many radio stations to avoid discussing controversial issues altogether.

“In fact, this is a disagreement without a difference: both sides endorse the principle that the government should be dictating what Americans can and can’t say–they just want to use the censor’s pen to support their own political agendas.

“Whoever values free speech should oppose government regulation of the airwaves. Freedom of speech is the freedom of every American to say whatever he wants, regardless of how offensive others find it, through any medium he can rightfully access. There seem to be no such defenders among liberals or conservatives–and that is truly offensive.”

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