Dagny falls in love with Galt, who has loved and watched her for years. But Dagny is a scab, the most dangerous enemy of the strike, and Galt won't touch her — yet. Dagny has the choice to join the strike and remain in the valley or go back to her railroad and the collapsing outside world. She is torn, but she refuses to give up the railroad and returns. Although Galt's friends don't want him to expose himself to the danger, he returns as well, so he can be near at hand when Dagny decides she's had enough.
When she returns, Dagny finds that the government has nationalized the railroad industry and controls it under a Railroad Unification Plan. Dagny can no longer make business decisions based on matters of production and profit; she is subject to the arbitrary whims of the dictators. The government wants Dagny to make a reassuring speech to the public on the radio and threatens her with the revelation of her affair with Rearden. On the air, Dagny proudly states that she was Rearden's lover and that he signed his metal over to the government only because of a blackmail threat. Before being cut off the air, Dagny succeeds in warning the American people about the ruthless dictatorship that the United States government is becoming.
Because of the government's socialist policies, the collapse of the U. S. economy is imminent. Francisco d'Anconia destroys his holdings and disappears because his properties worldwide are about to be nationalized. He leaves the "looters" — the parasites who feed off the producers — nothing, wiping out millions of dollars belonging to corrupt American investors like James Taggart. Meanwhile, politicians use their economic power to create their own personal empires. In one such scheme, the Taggart freight cars needed to haul the Minnesota wheat harvest to market are diverted to a project run by the relatives of powerful politicians. The wheat rots at the Taggart stations, the farmers riot, farms shut down (as do many of the companies providing them with equipment), people lose their jobs, and severe food shortages result.
