Rational egoism in the context of "Homo economicus"

Alice O'Connor (born Alisa Zinovyevna Rosenbaum; February 2 [O.S. January 20], 1905 – March 6, 1982), better known by her pen name Ayn Rand (/aɪn/ ), was a Russian-born American writer and philosopher. She is known for her fiction and for developing a philosophical system which she named Objectivism. Born and educated in Russia, she moved to the United States in 1926. After two early novels that were initially unsuccessful and two Broadway plays, Rand achieved fame with her 1943 novel The Fountainhead. In 1957, she published her best-selling work, the novel Atlas Shrugged. Afterward, until her death in 1982, she turned to non-fiction to promote her philosophy, publishing her own periodicals and releasing several collections of essays.

Rand advocated reason and rejected faith and religion. She supported rational and ethical egoism as opposed to altruism and hedonism. In politics, she condemned the initiation of force as immoral and supported laissez-faire capitalism, which she defined as the system based on recognizing individual rights, including private property rights. Although she opposed libertarianism, which she viewed as anarchism, Rand is often associated with the modern libertarian movement in the United States. In art, she promoted romantic realism. She was sharply critical of most philosophers and philosophical traditions known to her, with a few exceptions.

In ethical philosophy, ethical egoism is the normative position that moral agents ought to act in their own self-interest. It differs from psychological egoism, which claims that people can only act in their self-interest. Ethical egoism also differs from rational egoism, which holds that it is rational to act in one's self-interest.Ethical egoism holds, therefore, that actions whose consequences will benefit the doer are ethical.

Ethical egoism contrasts with ethical altruism, which holds that moral agents have an obligation to help others. Egoism and altruism both contrast with ethical utilitarianism, which holds that a moral agent should treat one's self (also known as the subject) with no higher regard than one has for others (as egoism does, by elevating self-interests and "the self" to a status not granted to others). But it also holds that one is not obligated to sacrifice one's own interests (as altruism does) to help others' interests, so long as one's own interests (i.e., one's own desires or well-being) are substantially equivalent to the others' interests and well-being, but they have the choice to do so. Egoism, utilitarianism, and altruism are all forms of consequentialism, but egoism and altruism contrast with utilitarianism, in that egoism and altruism are both agent-focused forms of consequentialism (i.e., subject-focused or subjective). However, utilitarianism is held to be agent-neutral (i.e., objective and impartial): it does not treat the subject's (i.e., the self's, i.e., the moral "agent's") own interests as being more or less important than the interests, desires, or well-being of others.

Psychological egoism is the view that humans are always motivated by self-interest and selfishness, even in what seem to be acts of altruism. It claims that, when people choose to help others, they do so ultimately because of the personal benefits that they expect to obtain, directly or indirectly, from doing so.

This is a descriptive rather than normative view, since it only makes claims about how things are, not how they "ought to be" according to some. It is, however, related to several other normative forms of egoism, such as ethical egoism and rational egoism.