| | From The Ayn Rand Lexicon
A recent variant of anarchistic theory, which is befuddling some of the younger advocates of freedom, is a weird absurdity called "competing governments." Accepting the basic premise of the modern statists — who see no difference between the functions of government and the functions of industry, between force and production, and who advocate government ownership of business—the proponents of "competing governments" take the other side of the same coin and declare that since competition is so beneficial to business, it should also be applied to government.
- Ayn Rand, "The Nature of Government" [emphasis mine]
Yes, but I know the full story, which I've posted here before. In fact, during this period, there were a number of anarcho-capitalists who frequented Rand's private parties, including economist Murray Rothbard and his crew of grad students and former students from City College. The issue was discussed but never taken very seriously, by most accounts. It's been reported by various witnesses that Branden took delight in personally insulting Rothbard, referring to him as "Rossbutt," in a parody of Rand's thick Russian accent.
What triggered the Competing Governments piece in the Newsletter and then in The Virtue of Selfishness was that Andrew Galambos visited to ask Rand's permission to make a movie of Atlas Shrugged. Galambos had a HUGE organization here in the L.A. area, with thousands of people continuously taking expensive - as in, $440 to $1,000 - 1970's dollars - courses at his Free Enterprise Institute. He had the wherewithal to finance the movie out of his own pocket. Galambos was also the ONLY activist then using the term "competing governments" to refer to his style of anarcho-capitalism, a term that he only used briefly and then dropped.
According to Galambos, his reputation got him into Rand's party and ended up with a personal one-on-one to discuss the movie. Note that Galambos had an extremely forceful, often abrasive personality. He said what he thought. Tact was a foreign concept to him, and the number of ex-Galambosians in the libertarian movement is legendary. He got to where he was in life by being smarter and more productive than everyone else, not by being nice, and he was fully aware of that fact. I think that he felt that if you needed nice, then you weren't worth talking to to begin with.
Still, he and Rand allegedly hit it off, and she told him that she was interested in his ideas on how to organize society, specifically the "competing government" concept, which he used to refer to his overall model for governance during their meeting.
Then Galambos told Rand that there was just one stipulation he required for making the Atlas Shrugged movie:
This time, he told her, he wanted assurance that they would get a decent scriptwriter, so that it wouldn't be botched like The Fountainhead.
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