Moral selfishness does not mean a license to do whatever one pleases, guided by whims. It means the exacting discipline of defining and pursuing one's rational self-interest. A code of rational self-interest rejects every form of human sacrifice, whether of oneself to others or of others to oneself. The ethics of rational self-interest upholds the exercise of one's mind in the service of one's life, and all of the specific value-choices and character attributes which such exercise entails. It upholds the virtues of rationality, independence, integrity, honesty, justice, productiveness, pride. It does not advocate "survival at any price."
Man's life, as required by his nature, is not the life of a mindless brute, of a looting thug or a mooching mystic, but the life of a thinking being—not life by means of force or fraud, but life by means of achievement—not survival at any price, since there's only one price that pays for man's survival: reason.
Reason is an attribute of the individual. Thought is a process performed not by men, but by man—in the singular. No society, committee, or "organic" group can do it. What a group can do in this regard is only: to leave the individual free to function, or to stop him.
The basic political requirement of Man's Life is freedom.
"Freedom" in this context means the power to act without coercion by others. It means an individual's power to act according to his own judgment, while respecting the same right in others. In a free society, men renounce a lethal method of dealing with disagreements: the initiation of physical force.
Force is the antonym and negation of thought. Understanding is not produced by a punch in the face; intellectual clarity does not flow from the muzzle of a gun; the weighing of evidence is not mediated by spasms of terror. The mind is a cognitive faculty; it cannot achieve knowledge or conviction apart from or against its perception of reality; it cannot be forced.
The proper political system, in essence—the system which guards the freedom of man's mind—is the original American system, based on the concept of inalienable individual rights. "[T]he source of man's rights is not divine law or congressional law, but the law of identity. A is A—and Man is Man. Rights are conditions of existence required by man's nature for his proper survival."
The Founding Fathers were right about the fact that rights are political, not economic, i.e., that they are sanctions to act and to keep the products of one's action, not unearned claims to the actions or products of others. And they were right about the fact that the proper function of government is the protection of man's rights.
Man's rights, Ayn Rand observes, can be violated only by physical force (fraud is an indirect form of force). A political system based on the recognition of rights is one that guards man against violence. Men therefore deal with one another not as potential killers, but as sovereign traders, according to their own independent judgment and voluntary consent. This kind of system represents the methodical protection of man's mind and of his self-interest, i.e., of the function and purpose on which human life depends.
Government is the agency that holds a monopoly on the legal use of physical force. In a free society the government uses force only in retaliation, against those who start its use. This involves three main functions: the police; the military; and the courts (which provide the means of resolving disputes peacefully, according to objective rules).