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Ayn Rand’s Case against Tariffs

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In the annals of literary and philosophical provocation, few figures loom as large as Ayn Rand.  Born in 1905 in Russia, Rand witnessed the Bolshevik Revolution’s assault on individual liberty firsthand, an experience that forged her into a fierce advocate for capitalism and personal freedom.  Her philosophy, Objectivism, champions reason, self-interest, and the unrestrained pursuit of one’s own happiness as moral imperatives.  Nowhere is this worldview more vividly dramatized than in her 1957 magnum opus, Atlas Shrugged.  The novel imagines a world where society’s most productive minds — entrepreneurs, inventors, and industrialists — go on strike, refusing to prop up a collectivist system that punishes their ingenuity with regulations, taxes, and guilt.  Led by the enigmatic John Galt, these creators retreat to a hidden valley, leaving a crumbling civilization to face the consequences of its own parasitism.  Rand’s strike is a bold ideological statement: The world runs on the shoulders of its innovators, and when they shrug, everything falls apart.

Fast-forward to the 21st century, and a quieter, less theatrical strike seems to be unfolding in the United States.  Businesses, from manufacturing giants to tech startups, have been offshoring production at a staggering pace, fleeing to countries like China, Vietnam, and Mexico.  On the surface, this exodus appears driven by cold economic logic: lower labor costs, lighter regulations, and tax incentives abroad make the bottom line sing.  Yet beneath the spreadsheets lies a resonance with Rand’s vision — a metaphorical strike by creators fed up with a system that increasingly stifles them.  Though not an ideological crusade in the Randian sense, this offshoring wave reflects a broader frustration with an American landscape that has drifted from its capitalist roots, piling burdens on those who dare to build.  Tariffs, intended to lure these companies back, instead add insult to injury, failing to address the root causes of their departure.

Ayn Rand and the Strike of the Titans

Rand’s Atlas Shrugged is more than a novel — it’s a manifesto.  Its sprawling narrative pits the heroic likes of Dagny Taggart, a railroad tycoon, and Hank Rearden, a steel magnate, against a dystopian government that smothers their achievements with bureaucracy and redistribution.  The book’s climax sees these titans of industry vanish, one by one, as John Galt convinces them to stop feeding a world that despises their greatness.  “We are on strike against self-immolation,” Galt declares in his famous radio address, encapsulating Objectivism’s rejection of altruism as a moral shackle.  For Rand, the strike is a triumph of principle over pragmatism, a refusal to compromise with a society that demands creators sacrifice their vision for the sake of the mediocre.

Rand’s philosophy struck a chord in mid-20th-century America, where capitalism still wore its swagger proudly.  Today, her ideas feel both prescient and distant.  The U.S. remains capitalist in name, yet its entrepreneurs face a gauntlet of obstacles eerily reminiscent of her fictional dystopia: steep corporate taxes, labyrinthine regulations, minimum wage mandates, environmental compliance costs, union pressures, and patent warfare.  These aren’t abstract grievances; they’re the daily grind of doing business in a country that seems to have forgotten how to celebrate its builders.

The Offshoring Exodus: A Strike in Disguise

Enter the offshoring phenomenon.  Since the 1980s, American companies have shifted production overseas at an accelerating clip.  China, once a communist backwater, has emerged as the world’s factory floor, producing everything from iPhones to plastic brushes.  The numbers tell the story: U.S. manufacturing employment peaked at 19.5 million in 1979 and has since dwindled to around 13 million, while China’s industrial output soared.  Economists point to the obvious drivers — labor in China costs a fraction of U.S. wages, regulations are more lax, and tax breaks abound.  It’s a pragmatic choice, not a philosophical one.  A CEO doesn’t cite Rand when moving a factory to Shenzhen; he cites shareholder value.

Yet economics doesn’t exist in a vacuum — it’s shaped by ideology. The U.S. system, with its tangle of rules and redistributive policies, reflects a creeping collectivism that Rand would have decried.  Minimum wage is a state-imposed constraint distorting the natural market dynamics of labor supply and demand.  The Environmental Protection Agency’s edicts often prioritize ecological purity over industrial vitality.  Unions, while fighting for labor, can paralyze production with strikes and demands.  Politicians beg for campaign cash while drafting laws that choke the very businesses they court.  And competitors wield patents like weapons, turning innovation into litigation.  Frivolous court hearings drain companies’ resources into lawyers’ pockets.  DIE and similar requirements make it impossible to staff positions based on merit or to easily get rid of underperforming employees.  For entrepreneurs, this is a relentless message that their drive is suspect, their success a resource to be tapped.

Offshoring, then, becomes a de facto strike.  It’s not the ideological purity of John Galt’s retreat — companies aren’t abandoning production altogether — but it’s a withdrawal nonetheless.  They’re saying, in effect, “If you won’t let us thrive here, we’ll go where we can.”  China’s allure is as a government that rolls out the red carpet for industry, offering stability and incentives the U.S. no longer matches.  The irony is biting: A nominally communist state has outdone the self-proclaimed champion of capitalism at its own game.

Tariffs: An Insult, Not an Incentive

In response, the U.S. has turned to tariffs, most notably under President Trump.  The logic is simple: Tax imports to make domestic production competitive again, forcing businesses to “come home.”  But this misses the mark.  Tariffs raise costs for companies already stretched thin, punishing them for adapting to a hostile environment rather than fixing it.  If offshoring is a strike, tariffs are a scolding from the boss, demanding loyalty without offering better conditions.  Data show the limits: Although some firms have shifted from China to places like Vietnam, very few have returned to the U.S.  Manufacturing’s share of GDP continues its decades-long slide, suggesting that the “strikers” aren’t ready to clock back in.

Bringing the Creators Home

Rand’s strikers returned only when the world begged them, having learned its lesson.  Reality demands a less dramatic fix.  If the U.S. wants to onshore its businesses, it must create a climate where they want to stay — out of not coercion, but desire.  Lower taxes, streamlined regulations, and labor flexibility could tilt the scales.  Incentives like tax credits for domestic investment or R&D could sweeten the deal.  The EPA could balance environmental goals with industrial needs, not just wield a veto.  Politicians could stop treating businesses as ATMs and start seeing them as partners.  This is not an exhaustive list of commonsense measures, nor are these radical ideas; they’re echoes of the America that once drew the world’s dreamers.

The parallel with Atlas Shrugged isn’t perfect.  Rand’s strike was both a moral and an ideological stand; offshoring is a survival tactic.  Yet the result aligns: Creators, whether driven by principle or profit, are walking away.  Tariffs won’t guilt them back; they’ll just dig in elsewhere.  To end this strike, the U.S. must rediscover what made it a beacon for builders in the first place.  Until then, the Atlas of industry will keep shrugging, and the world will keep turning — somewhere else.

Atlas Shrugged at Rockefeller CenterUnsplash.

American Thinker

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