Publisher's Synopsis
In the first decade of the 21st century, many educated men believed that the libertarian philosophies of limited government and strong individual liberty, based on reason and rational analysis could run with minimal oversight. Key decision makers on Wall Street chose not to apply critical thinking, but to intentionally take advantage of people, resulting in the widespread collateralized mortgages that led to the meltdown of the economy. With over a 30% reduction in the major investments of the middle class-homes and pensions-there is anger and disillusionment with the people running the system. As irresponsibility and unaccountability of the financial sector were prime causes of the crisis, there is a clear need for changes that include corporate transparency and corporate accountability. Since September 2011 the Wall Street protesters call for action which addresses corporate greed and economic disparity. Objectivism, the prototype of libertarianism, was a philosophy developed by Ayn Rand during the Cold War. It is the blending of free markets, reason and individualism. This book, Objectivism Lost and an Age of Disillusionment, documents the fall of objectivism from its lofty place of reverence since 2008. The title is patterned after the title of Milton's epic poem, Paradise Lost, about man's disobedience leading to the loss of the Garden of Paradise. For the most part, Milton's doubts, disillusionment and disappointment were based on the performance of a sovereign nation. He saw the righteous cause of the English Revolution destroyed by evil forces along with the dreams of republicans like himself. For the working class today, the American dream has been destroyed by the economic debacle-the present system is failing to provide a better life for their children than they have. Many call for increased regulation of the financial services industry to prevent further abuses and avoid the next financial crisis. The most visual message, coming from the Occupy Wall Street protest that has gone international, is about everyone paying their fair share. However, no matter how hard the regulators try, or how smart they are, they will not be able to keep on top of the risk. There is need of a new culture that the participants believe in, in order to rebuild the middle class. The application of the new evolutionary economics and new institutional economics will supply a process to introduce change. The resulting combination of competition and transparency will provide the accountability needed to strengthen the system, along with the necessary institutions to safeguard against abuse of the marketplace, within a new framework that supports capitalism.
