Alan Greenspan: the Real-Life Francisco D’Anconia?

The other day I came across an entertaining comment in a blog discussion forum that, while certainly nothing more than an exercise of the imagination, grabbed my attention and delivered an unexpected (and, in this economy, a much needed) smile to my face.  In a debate over former objectivist Alan Greenspan’s sell-out to economic interventionism, a contributor unexpectedly posits Greenspan is the real-life version of Francisco D’Anconia! This assertion riled up other forum participants, of course, who were quick to (rightly) point out that Greenspan abandoned objectivism long ago and now arguably represents the vilest embodiment of government interventionism and economic central planning.

However, in his explanation for linking the former Fed Chairman and fictional hero, the commenter did not seem to intend an attack against objectivism, or to blur its parameters, or even to imply that Greenspan is in any way deserving of the occasional (mistaken or seriously misguided) parallels between his policies and objectivism, libertarianism, or even free-market-ism.  In fact, I’m not exactly sure what he meant, but his remark definitely fueled a daydream or two as I reflected on this correlation over the next few days.

For the unenlightened, D’Anconia is a character in Ayn Rand’s Atlas Shrugged who, while posing as an altruistic, wealthy, anti-capitalist playboy, is secretly working with a cadre of like-minded producers to deliver a morally- and philosophically-bankrupt society to its logical conclusion – complete and utter ruin.  Much like the Federal Reserve’s inflationary policy of creating “false wealth,” D’Anconia lures ignorant investors with a venture “too good to be true” – the impression of a prosperous mining company run by an idiot – only to dynamite his property and devastate his shareholders.  His moral philosophy – identified to him by the world’s greatest inventor – is one of rational self-interest, and his actions constitute a refusal to further sanction the contradictions of an altruistic society.

Though at first a logical positivist, Greenspan became a well-known defender of free markets and the gold standard, as well as a member of Ayn Rand’s legendary inner circle.  In fact, he authored what became three chapters of Rand’s Capitalism: The Unknown Ideal – essays entitled, “Antitrust,” “Gold and Economic Freedom,” and “The Assault on Integrity.”  Over time, however, he apparently abandoned objectivism and laissez faire capitalism, fell in love with political power, and was eventually appointed Federal Reserve Chairman.  As one of the most powerful men in the world, he dictated America’s fiscal policy for almost two decades – expanding or contracting the money supply as he saw fit.  Without question, the inflationary policies established by Greenspan set the stage for the current economic and financial implosion.

Few real-life historical examples match the severity of Greenspan’s break from rational morality and individual liberty to the adoption of so opposite an ideology.  While a quick internet search yields plenty of criticism for Greenspan’s abandonment of reason in favor of a pragmatic “Friedman-ite” policy of economic interventionism, I have not yet found a straight-forward, easy-to-accept explanation for this about-face.  Although Greenspan apparently still considers himself a libertarian, the justification offered for his present views – that government has a proper role to play in regulating against “market failure” – is anti-free market, full of contradictions, and, quite frankly, difficult to accept as the honest belief of an intelligent – and at one time logical – man.  Who knows, maybe the explanation really is simple enough to be captured by the phrase “power corrupts.”

Of course, this foray into the world of fantasy is nothing more than conspiratorial fun – Greenspan is certainly no D’Anconia (indeed, he much more closely resembles another literary figure – Darth Vader).  But I only know of a few who have made this seemingly obvious comparison, and I have to admit considering it to be pretty entertaining.    For any Atlas Shrugged fans who read this, isn’t it at least a little amusing to imagine – if only for a moment – Rand, Greenspan, and fellow “producers” conspiring late nights in Rand’s 1960s New York apartment to draft the real-life blueprint for “stopping the motor of the world”? 

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