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The particular form of economic organization, which is becoming more and more apparent in this country, as an outgrowth of the power of pressure groups, is one of the worst variants of statism: guild socialism. Guild socialism robs the talented young of their future—by freezing men into professional castes under rigid rules. It represents an open embodiment of the basic motive of most statists, though they usually prefer not to confess it: the entrenchment and protection of mediocrity from abler competitors, the shackling of the men of superior ability down to the mean average of their professions. That theory is not too popular among socialists (though it has its advocates)—but the most famous instance of its large-scale practice was Fascist Italy.

In the 1930’s, a few perceptive men said that Roosevelt’s New Deal was a form of guild socialism and that it was closer to Mussolini’s system than to any other. They were ignored. Today, the evidence is unmistakable.

It was also said that if fascism ever came to the United States, it would come disguised as socialism.

Copyright © 1986 by Harry Binswanger. Introduction copyright © 1986 by Leonard Peikoff. All rights reserved. For information address New American Library.

Acknowledgments

Excerpts from The Ominous Parallels, by Leonard Peikoff. Copyright © 1982 by Leonard Peikoff. Reprinted with permission of Stein and Day Publishers. Excerpts from The Romantic Manifesto, by Ayn Rand. Copyright © 1971, by The Objectivist. Reprinted with permission of Harper & Row, Publishers, Inc. Excerpts from Atlas Shrugged, copyright © 1957 by Ayn Rand, The Fountainhead, copyright © 1943 by Ayn Rand, and For the New Intellectual, copyright © 1961 by Ayn Rand. Reprinted by permission of the Estate of Ayn Rand. Excerpts from Philosophy: Who Needs It, by Ayn Rand. Copyright © 1982 by Leonard Peikoff, Executor, Estate of Ayn Rand. Reprinted by permission of the Estate of Ayn Rand. Excerpts from “The Philosophy of Objectivism” lecture series. Copyright © 1976 by Leonard Peikoff. Reprinted by permission. Excerpts from Alvin Toffler’s interview with Ayn Rand, which first appeared in Playboy magazine. Copyright © 1964. Reprinted by permission of Alvin Toffler. All rights reserved including the right of reproduction in whole or in part in any form. Used by arrangement with Plume, a member of Penguin Group (USA), Inc.