Ayn Rand claims her economic and political theories about capitalism are based on her philosophyi. But, according to the rules of her philosophy, her concept of capitalism is false.
According to her philosophy of Objectivist Epistemology, our mental concepts are the things which we observe in the real world. For example, our concept “table” is true only if we observe a real table. If we cannot see a table, we do not have a concept of it. If someone claims to have the concept “table” without observing a real table, their statement is false and so is their conceptii.
On the other hand, according to Ayn Rand’s economic theory, capitalism is an “unknown ideal”iii which has “never yet existed”iv. In her economic theory all the economic systems which have existed are called “statist”v.
Logically, according to her premises: if capitalism is unknown, then capitalism cannot have been observed and Rand’s concept of capitalism cannot be true.
Therefore, Rand’s concept of capitalism is false according to the criteria of her philosophy.
iThe Objectivist Ethics
iiIntro. to Obj. Ep. pg. 54
iiiCapitalism: The Unknown Ideal, Title
ivThe Objectivist Ethics, Pg. 33
vThe Roots of War, Pg 35 and on.