So Kristol thought the bell-shaped distribution of income in the United States, and the similarly shaped distributions among our economic peers, proved that income inequality merely followed the natural inequality of human talent. As it happens, Kristol wrote that passage shortly before a boom in inequality, one that drove the income share of the highest-earning 1 percent of the population from around 8 percent (when he was writing) to 24 percent today, and which stretched the bell curve of the income distribution into a distended sloping curve with a lengthy right tail. At the same time, America has also grown vastly more unequal in comparison with the European countries cited by Kristol.

This suggests one of two possibilities. The first is that the inherent human talent of America’s economic elite has massively increased over the last generation, relative to that of the American middle class and that of the European economic elite. The second is that bargaining power, political power, and other circumstances can effect the distribution of income—which is to say, again, that one’s income level is not a good indicator of a person’s ability, let alone of a person’s social value.

The final feature of Randian thought that has come to dominate the right is its apocalyptic thinking about redistribution. Rand taught hysteria. The expressions of terror at the “confiscation” and “looting” of wealth, and the loose talk of the rich going on strike, stands in sharp contrast to the decidedly non-Bolshevik measures that they claim to describe. The reality of the contemporary United States is that, even as income inequality has exploded, the average tax rate paid by the top 1 percent has fallen by about one-third over the last twenty-five years. Again: it has fallen. The rich have gotten unimaginably richer, and at the same time their tax burden has dropped significantly. And yet conservatives routinely describe this state of affairs as intolerably oppressive to the rich. Since the share of the national income accruing to the rich has grown faster than their average tax rate has shrunk, they have paid an ever-rising share of the federal tax burden. This is the fact that so vexes the right.

Most of the right-wing commentary purporting to prove that the rich bear the overwhelming burden of government relies upon the simple trick of citing only the income tax, which is progressive, while ignoring more regressive levies. A brief overview of the facts lends some perspective to the fears of a new Red Terror. Our government divides its functions between the federal, state, and local levels. State and local governments tend to raise revenue in ways that tax the poor at higher rates than the rich. (It is difficult for a state or a locality to maintain higher rates on the rich, who can easily move to another town or state that offers lower rates.) The federal government raises some of its revenue from progressive sources, such as the income tax, but also healthy chunks from regressive levies, such as the payroll tax.

The sum total of these taxes levies a slightly higher rate on the rich. The bottom 99 percent of taxpayers pay 29.4 percent of their income in local, state, and federal taxes. The top 1 percent pay an average total tax rate of 30.9 percent—slightly higher, but hardly the sort of punishment that ought to prompt thoughts of withdrawing from society to create a secret realm of capitalistic übermenschen. These numbers tend to bounce back and forth, depending upon which party controls the government at any given time. If Obama succeeds in enacting his tax policies, the tax burden on the rich will bump up slightly, just as it bumped down under George W. Bush.

What is so striking, and serves as the clearest mark of Rand’s lasting influence, is the language of moral absolutism applied by the right to these questions. Conservatives define the see-sawing of the federal tax-and-transfer system between slightly redistributive and very slightly redistributive as a culture war over capitalism, or a final battle to save the free enterprise system from the hoard of free-riders. And Obama certainly is expanding the role of the federal government, though probably less than George W. Bush did. (The Democratic health care bills would add considerably less net expenditure to the federal budget than Bush’s prescription drug benefit.) The hysteria lies in the realization that Obama would make the government more redistributive—that he would steal from the virtuous (them) and give to the undeserving.

Like many other followers of Rand, John Allison of BB&T has taken to claiming vindication in the convulsive events of the past year. “Rand predicted what would happen fifty years ago,” he told The New York Times. “It’s a nightmare for anyone who supports individual rights.” If Rand was truly right, of course, then Allison will flee his home and join his fellow supermen in some distant capitalist nirvana. So perhaps the economic crisis may bring some good after all.

Jonathan Chait is a senior editor at The New Republic.