2019 Year 12 IB Extended Essays

Ayn Rand’s Objectivism and John Rawls’ Theory of Justice

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For Rand, laissez-faire capitalism provides the perfect, just society. Laissez-faire

capitalism’s strict prohibition on physical aggression justifies its employment as an

economic system. The Laissez-faire approach focuses on upholding individual rights

such as the right to property, free speech and democracy enforced by a government with

limited power. 9 Ayn Rand asserts that laissez-faire capitalism is the only system that

can be used to protect individuals and form a morally just social contract. 10

Rand’s objectivist theories can be criticised in three areas: first, the objective nature of

reality; second, government responsibility; third, the importance of a mixed market

economy. The first objection is that the natural sciences have begun to establish that

human nature is not derived from the nature of reality but instead arises from genetic

and biological processes. Second, it is impossible to create a set of inalienable human

rights based on justice or empiricism found in reality. Furthermore, Rand fails to deal

with the issue of negative externality. Rand theorises that, “the only proper functions of

a government are: the police, to protect you from criminals; the army, to protect you

from foreign invaders; and the courts, to protect your property and contracts …

according to objective law.” 11 Rand’s stance on government deals with the impact

economic transactions have on third parties. Such as the pollution of the global

commons by corporations. Rand’s neglect for those who cannot provide for themselves

means that those who cannot afford healthcare or access to education go without.

Finally, Rand unfairly dismisses the importance of a mixed market economy. The mixed

9 Amadeo, K., 2019. Laissez-Faire Economic Theory. [Online] 10 Duignan, B., 2019. Objectivism. [Online] 11 Rand, A. & Peikoff, L., 1982. Philosophy: Who Needs It. 1st Edition ed. Indianapolis: Bobbs-Merrill.

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