Mr. Thompson, the Head of State, holds a meeting with a group of looters and Washington men. He plans to declare a State of Emergency in order to let Wesley Mouch pass “Directive 10-289,” the culmination of generations of social policy and all the government’s recent bills and rules. The directive essentially outlaws any kind of economic growth or innovation. There are seven points to it: No employee can resign, no business can close, all patents and copyrights are to be signed over to the Unification Board, no new innovations can be made or sold, all industries must produce exactly the same amount as they have in the past year, everyone must spend exactly the same amount as they have in the past year, everyone must earn exactly the same amount as they have in the past year, and the Unification Board is to have the final say in resolving any disputes regarding the directive.

In every company and industry across the country, swathes of dedicated employees resign from their posts rather than work under the directive’s conditions. Dagny Taggart quits her position in TT and leaves for an isolated cabin. Tony is outraged on Rearden’s behalf and defiant of the directive.