Rand states profitable businesses require people to be unemployed, yet applying for jobs: “that business concern requires the availability of more than one applicant for any job – that if only one applicant existed … the business concern would have to close its doors”[1].
On a national level, what Rand is talking about is the supposed need for an economy to maintain unemployment rates around 6 percent. One reason businesses close their doors is that banks stop investing when national unemployment gets too low.
On the other hand, Rand also says “is a man a sovereign individual who owns his… work…? Or is he the property of the… tribe… that may… control his work…?[2]” and “a man has the right to support his life by his own work… the right to take a job if another man chooses to hire him”[3] and “no man’s rights may be left at the mercy of the unilateral decision, the arbitrary choice… of another man.[4]”
If unemployment is necessary for businesses to be profitable, the businesses should pay for unemployment.
Rand’s tribe of investors prevents employment. Businesses want to hire, people want to work, but the investment community decided otherwise. Therefore, unemployment should be compensated for by those who cause it and profit by it.
[1] Virtue of Selfishness, The conflicts of men’s interests Pg. 56
[2] Capitalism the Unknown Ideal, What is capitalism? Pg 18
[3] Virtue of Selfishness, Man’s rights. Pg 97
[4] The virtue of selfishness, The nature of government Pg 111