Stephen Moore on Atlas Shrugged

Stephen Moore, who is senior economics writer for The Wall Street Journal, wrote an opinion piece in the 9 January 2009 issue of The Wall Street Journal entitled 'Atlas Shrugged': From Fiction to Fact in 52 Years. He points out how closely there are parallels to the fictional decay of the American economy, with panicked Washington politicians and many incompetent businessmen, and the present atmosphere of economic bailouts. The present bailouts also reward the more incompetent businessmen at the expense of the more competent. The politician's names for rescue and stabilization programs sound remarkably similar to those of Ayn Rand's masterpiece, though Rand's names are slightly more pithy. Finally, the sense of utter panic in Washington is well portrayed in Atlas Shrugged.

Moore notes, "Ultimately, 'Atlas Shrugged' is a celebration of the entrepreneur, the risk taker and the cultivator of wealth through human intellect." "When profits and wealth and creativity are denigrated in society, they start to disappear -- leaving everyone the poorer."

He also quotes the panicked Mr. Thompson, the American leader in the novel, begging John Galt to become his Economic Dictator, which is apparently the contemporary role which has been held by Treasury Secretary Hank Paulson. Galt, knowing this is nonsense, says that the income tax should be abolished. Mr. Thompson, of course, will not go along with that even though he has just told Galt that he can do anything to save the economy. Moore comments that abolishing the income tax really would be an economic stimulus. He is right about that.

But better yet, we should abolish all corporate and investment taxes, if we give a fig about growing the economy and wish to have everyone possible employed. The latter goal would be greatly helped by eliminating the foolish minimum wage laws. Then we should institute a flat-rate income tax without exemptions and tax breaks at a low rate such as 15%. If our bloated government should then need to be pared down, fine. More likely than not, so much more revenue will soon pour into the government that tax revenues will still allow government to grow, most unfortunately.

David Kelley, founder of the Atlas Society, is also quoted as saying that we are now living Atlas Shrugged.