The late Federal Reserve chair Alan Greenspan, a towering figure in American economic policy, maintained one of the most intellectually formative and enduring relationships of his life with the formidable novelist and libertarian philosopher Ayn Rand. Their close friendship, which began when Greenspan was in his mid-twenties and Rand in her forties, spanned decades until Rand’s death in 1982, profoundly shaping Greenspan’s intellectual framework and public persona.
Greenspan, who would later become a prominent central banker, was introduced to Rand through his then-wife, Canadian art historian Joan Mitchell. Mitchell was a close friend of the wife of Nathaniel Branden, Rand’s protege and longtime lover. Greenspan and Mitchell’s marriage in 1952 was brief, ending within a year, but his connection with Rand proved far more lasting and significant.
Through the Branden connection, Greenspan became an integral part of Rand’s “Collective,” a select group of friends and thinkers. These individuals would regularly convene at Rand’s midtown Manhattan apartment to engage in discussions on politics, world events, and philosophical ideas. Greenspan’s consistent participation solidified his role within this influential circle, exposing him to the Objectivist philosophy that Rand championed.
Rand, author of the 1957 novel Atlas Shrugged—a perennial favorite among conservatives and recognized by the Library of Congress as one of the books that has shaped America—and the 1943 best-seller The Fountainhead, quickly recognized Greenspan’s intellectual inclinations. According to Greenspan’s 2007 memoir, The Age of Turbulence: Adventures in a New World, Rand affectionately nicknamed him “the undertaker” early in their friendship, a moniker inspired by his consistent choice of dark suits and his characteristically sober demeanor.
This dour reputation, however, stood in stark contrast to Greenspan’s early artistic pursuits. Before embarking on his economics degree at New York University, he enrolled at Juilliard to study clarinet. As a teenager, he showcased his musical talent by playing in a swing band alongside the future jazz legend Stan Getz. Despite his early foray into music, his tastes were notably conservative, as he dismissed nearly all forms of post-big band popular music in his memoir as being “on the edge of noise.”
Greenspan’s intellectual alignment with Rand extended into his professional contributions. He wrote for Rand’s magazine, The Objectivist, notably contributing an influential essay on the gold standard in 1966. This essay was later reprinted in Rand’s book Capitalism: The Unknown Ideal, underscoring his early advocacy for economic principles consistent with Rand’s libertarian views.
The depth of their bond was publicly evident during a pivotal moment in Greenspan’s career. When he was sworn in as chairman of the Council of Economic Advisers during the Ford administration, it was Ayn Rand who stood by his side. She was accompanied by her husband, Frank O’Connor, and Greenspan’s mother, Rose Goldsmith, highlighting the personal significance of her presence at such a formal occasion.
Greenspan himself articulated the profound impact Rand had on his life. In his memoir, he wrote, “Ayn Rand became a stabilizing force in my life.” He further elaborated on her qualities, stating, “She was a wholly original thinker, sharply analytical, strong-willed, highly principled, and very insistent on rationality as the highest value. In that regard, our values were congruent – we agreed on the importance of mathematics and intellectual rigor.” This quote encapsulates the intellectual synergy that defined their decades-long friendship, rooted in a shared commitment to rationality and rigorous thought.
The enduring intellectual partnership between Alan Greenspan and Ayn Rand offers a unique lens through which to view the formative influences on one of the 20th century’s most significant economic figures. Their shared philosophical ground, particularly on the importance of rationality and intellectual rigor, shaped Greenspan’s early economic perspectives and remained a foundational element of his intellectual journey, long before he ascended to the pinnacle of global financial leadership.
