Crisis in Corporate America
Oct 1, 2002

      IRVINE, CA--Corporate America, the headlines announce, is in crisis. The scandals at Enron and a few other companies, it is said, are the product of the unscrupulous greed and dishonesty endemic to business. The solution, we are told, is more government regulations.

      Is this the correct explanation of and solution to the problem? No, answers Dr. Yaron Brook, executive director of the Ayn Rand Institute and a former professor of finance.

      In a speech at the Hyatt Regency in Irvine, Calif., on Oct. 21 (7:30 PM), Dr. Brook will explain why the massive controls and regulations imposed on American business in the 20th century actually foster rather than impede corporate fraud. They cripple the true wealth creators while opening the door to those who seek to get away with survival by means of currying business favors from regulators and bureaucrats and engaging in scams.

      The real cause of the problem is the idea that motivates the controls in the first place: the moral doctrine of altruism, which declares that self-interest and the profit motive are evil. It is this corrupt doctrine that teaches businessmen that the pursuit of profit means preying on others and engaging in range-of-the-moment duplicity and outright fraud. And it is this corrupt doctrine that teaches Americans to fear business and to demand government protection.

      But in actual fact, Dr. Brook will show, the profit motive is noble: it means striving to better one's life. Profits are not stolen but earned--and demand the best of a man: independent judgment and productive action. Long range, a successful business must practice the honesty necessary to retain its customers, the integrity necessary to build its reputation, the creativity necessary to ensure the continued demand for its products.

      If one wants to restore morality to business, Dr. Brook will argue, one must restore capitalism to America. One must repeal government controls on business and recognize once again the individual's right to pursue his self-interest and profit.

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Dr. Yaron Brook is available for interviews. To interview Dr. Brook or book him for your show, please e-mail media@aynrandcenter.org

For more articles by Yaron Brook, and his bio, click here.