The World's Motor
Rand knew perfectly well that the historical data underdetermined the question of whether predation or voluntary cooperation was essential to the capitalistic form of society: the rise of the societies we call capitalist involved the liberation of many people and of the markets in many commodities; it also involved the escalation of many forms of predatory state patronage and the invention of new ones (it meant, for example, considerably more freedom in agriculture or textiles; it also meant considerably more government intervention in banking, land use, and transportation infrastructure). You could describe the picture by identifying the growth in freedom as the capitalist stuff, with the new levels of predation as anti-capitalist deviations from capitalism marring its productive development. But you could just as easily describe it by identifying the growth in predation as the capitalist stuff, with the growth in freedom as a countervailing, non-capitalist or anti-capitalist development, which the capitalist stuff had an antagonistic, or often parasitic, relationship to. So which description should you choose? I think the best explanation why Rand chose the first picture instead of the second one has to do with what she would have identified with her sense of life — the degree to which her aesthetic and affectional imagination were engaged on behalf of actually existing capitalists, as she understood them, in the known reality of the mixed economy: that is, her view of the grand bourgeoisie — big industrialists, business-owners, money-men, the top tier of entrepreneurial inventors, and ultimately the wealthy broadly — as the heroic prime movers in business, and thus as the world’s motor, driving the production of the material means of survival and human flourishing. (See, for example, Atlas Shrugged or America’s Persecuted Minority: Big Business.) Though she’d no doubt fume at the description, one way of putting it is that she made her choices about what language to reclaim and what language to abandon on the basis of class solidarity. I have no quarrel with Rand’s procedure; but rather only with the particular class she chooses to stand in solidarity with. If Rand is right that the capitalist is the chief victim of the predatory state, and if the picture she draws of the archetypical capitalist is well-drawn, it makes perfect sense for her to reclaim the word capitalism for the free market as against political patronage. If, on the other hand, the bosses are the chief beneficiaries of the predatory state, and if the picture she draws of the archetypical capitalist is ill-drawn — if the archetypical boss is a busybodying mediocrity, a cunning predator, or a petulant grafter, and if their role in the workplace is a drag on the productive labor on the shop floor rather than the animating force behind it as Rand claims — then it makes perfect sense to locate the essence of capitalism elsewhere from where Rand locates it, and to treat capitalism as a term of criticism for political patronage as against the free market.
This may help serve as some explanation for why Rand is willing to identify with the term capitalism and even to invest the symbol of a government fiat currency with near-religious significance, while fully recognizing the predatory nature of the state-business nexus; it may also help to explain how, in spite of really detesting the stupidity and the atrocities perpetrated in the name of socialism, I can be so fond of old union songs, and how I can fly a red flag over my soap box while I preach the free market.
Addendum. After posting the above, I serendipitously found this Angry Flower cartoon, courtesy of Johnny Lemuria on LeftLibertarian.
P.P.S. Oops! Actually, the link to the cartoon came from Joel Schlosberg.