Why is capitalism under attack, and why does it merit defense? Because capitalism is not only practical, but moral and fulfilling to all of its participants. Furthermore, it is one of our cherished liberties to pursue happiness, and this is only achieved through rational buying decisions.

So said Fred Smith, president and founder of the Competitive Enterprise Institute and his associate Yaron Brook, president and executive director of the Ayn Rand Institute, in a talk "The Practical and Moral Aspects of Capitalism," April 1, in the Statler Amphitheater. They said that the recently expanding and controlling state and federal governments have limited our economic utility, and that a decrease in free market choices affects us all.

"American politicians seduce easier than co-eds," Smith said. Since the beginning of the Progressive Movement in the early 19th century, group decisions made by government have been deemed to be better than individual decisions, and this has been witnessed by the massive spending and investment undertaken by the federal government in the past several years, he said.

"The regulatory state we are in can never stop, because the intellectual class has continued to expand," said Smith. As the state continues to expand, it increasingly rewards the intellectual class through grants for research in such areas as economics, transportation and communication, and the state then drafts legislation based on the findings. This can only make the world a colder and less practical place, argued Smith, because individuals aren't able to freely trade among themselves and determine what is personally most beneficial.

Brook expanded this discussion by defining the true meaning of capitalism -- that it involves free trade, and that it is only moral to desire a better quality of life. "Consumers behave in self-interested ways," Brook said. Take his smartphone, he said; it has allowed him to be more productive, and therefore, it was well worth its purchase price. He is happy that the phone manufacturer profited, because both parties have received what they wanted.

However, the problem, argued Brook, is that "we are taught self-interest is wrong and immoral." As children, our parents encourage us to share, with no expectation of return. "Morality according to [Ayn] Rand is being the best you can be," and those who do their best and contribute to society deserve to set their own prices and keep their profits, Brook said. However, the act of giving is not removed from Brook's perfect world, but he envisions a world where all sales transactions involve individuals reaching agreements among themselves.

Both Brook and Smith also conveyed serious concern with the state imposing taxes on peoples' wealth, thus removing a part of their liberty to spend as they see fit.

When members of the audience questioned the opinions of Brook and Smith, they admitted that the continually changing political landscape makes it impossible to find one solution, but they reaffirmed that self-interest and profit are moral and practical, so long as individuals are not riddled by greed. Smith also made a plug for the Competitive Enterprise Institute, offering interested students the opportunity to defend liberty and capitalism through an internship program.

The talk was presented by Entrepreneurship@Cornell and the Program on Freedom and Free Societies.

Nathaniel Steele '11 is a writer intern for the Cornell Chronicle.