The American economy is gradually collapsing. Industrial production is in steady decline, stores are closing, and workers are unemployed. A general gloominess pervades the culture, giving rise to the rhetorical question, "Who is John Galt?" The question expresses the widespread belief that no one can answer the difficult questions facing the American society. Dagny and Eddie contemptuously reject this pessimistic attitude and fight it.
Ayn Rand sets up a contrast immediately between Dagny, the story's heroine, and her brother, Jim. Both are businesspeople, but each holds markedly different moral and political theories. Dagny is a model of the spirit and practice of capitalism. She believes in industrial production and profit — hard work and earning large amounts of money. She orders rails from Hank Rearden instead of Orren Boyle because Rearden delivers his product and Boyle does not. Likewise, Dagny will provide freight service to Ellis Wyatt and the Colorado industrialists but not to the destitute economy of socialist Mexico because Wyatt and his colleagues produce but the Mexican economy does not. Jim, on the other hand, is an example of the spirit and practice of socialism. He believes in sacrificing for the "public good" and in giving chances to the little guy, rather than dealing with those already successful. He orders rail from Associated Steel instead of the efficient Rearden Steel in order, he says, to give Orren Boyle a chance. Likewise, Jim builds the San Sebastian Line at a cost of millions to give the impoverished Mexicans an economic opportunity. Dagny seeks to earn profit; Jim seeks to serve the public welfare. Because of their underlying differences, Dagny and Jim clash regarding the San Sebastian Line, the choice of steel companies, and many other things.
