Ok so I would like to propose a scenario under the "perfect" Ayn Rand circumstances.
But first a starting point: I'd like to note the paradox contained in Ayn Rand's basic principle: one should act out of his selfish pursuit of happiness however he sees fit, while not interfering with others selfish pursuit of happiness. The problem lies in the fact that rational egoism can't function unless applied only to one specific person. It cannot be universal.
Example: If I allow the other person's selfish pursuit of happiness to impose onto my own selfish pursuit of happiness than I'm being altruistic and unselfish in allowing him to ultimately impose onto my rights for selfish pursuit - this is wrong and "amoral" since I'm giving away my right and is a form of altruism (in accordance to Ayn Rand's principle); on the other hand if I guard against other person's imposition onto my selfish pursuit of happiness than I prevent him from his own pursuit, which contradicts the second half of the principle.
Lets focus on a pure laissez-faire capitalism economical system as a setting for a hypothetical scenario.
In this system I am an entrepreneur whose moral code answers only to my own selfish goals. I'm unopposed by any form of government regulations or any other ethical and/or moral regulations. My goals are to produce the best product and be the most successful vendor in my specific area. This goal is admirable even noble, however its implications in laissez-faire capitalism are slippery at best. My product by the way is energy.
Now for the sake of argument let's say that I'm a brilliant inventor/industrialist with starting capital (as most of Ayn Rand heros are). I am an inventor of an ingenious system that produces cheap and officiant power from water. The resource is plentiful and most importantly free (there is yet another interesting alternative

). Slowly but surely I drive all of my competitors out of business because my energy is more cost efficient. Since we live in a society where every one is completely objective, my fellow industrialist producers will have the most return using my energy as it will cut their production costs. The choices must be purely rational without any emotions.
Within a decade I corner the energy market by driving my competitors out of business in a "fair" competition unopposed by any regulatory system and now I'm the only provider of energy for the whole population. Next step. As a good objective capitalist I have absolutely no concern for my fellow industrialist. If you need energy? Better pay up. Lets also suppose that I'm an ambitious type and since I have no competition in my initial industry and a constant urge for a challenge I decide: well why not spread out. One by one industries fall to my empire because if any of them try to compete with me I will take a loss in a new field while maximizing the gain in my monopolized energy-industrial complex. (That is only if I'm a nice capitalist if I am a true objective capitalist I would most likely cut off their energy supply and wait for the card house to crumble as it will be the quickest and least painful transition). Being well-behaved objective capitalists themselves, my fellow industrialists gladly except the challenge and one by one die in the gutter since in the perfect society we have no altruism what so ever. Whatever consequences they might suffer from my perfectly moral tactic is none of my business since all I'm doing is pursuing my selfish goals.
To guard against any future objections like "well, there is always going to be an altruistic type" I would like to quote Ayn Rand:
"If any civilization is to survive, it is the morality of altruism that men have to reject." And we dedicated ourselves completely to the objective realities of laissez-faire capitalism.
But let's get back to our "perfect" model. Very soon I'm mankind's mother and father. As a good capitalist I must maximize my profits without eliminating consumption so I make sure that any given individual gets paid only enough to spend on the services (all of them) that I provide. Progress stops and we have a self-efficient swamp of plutocracy.
As a disclaimer I would like to say that I do not reject objectivism. I think it is a cleverly set paradox and an interesting exercise. It is a good motivator to say: I need to be productive for my own sake. No job - no food. Do I want to be begging on the street or do I have an integrity to get off my arse, turn off the TV and go accomplish something. In fact I agree on few points with Ayn Rand:
-People are selfish by nature. The animal instinct in us fights for self preservation but it is the intellect that allows us to be altruistic, cooperative and compromising. I DO NOT imply that instinct is bad it is just as important as intellect. Without instinct no individual would be able to avoid any fatal incidents. We are both selfish and selfless to a degree. A simplest example is a woman who is by nature a selfish individual concerned with her own well being but once she has a baby she will happily sacrifice her life for the well being of her child. An objectivist might argue that it can be explained from a selfish stance: "She is only raising a child so it can take care of her when she cannot do it herself". But I dare you to tell this to any woman with children and I guarantee you she will crack your skull.
-People should be motivated by self interest. If not me than who else? However one of the missing ingredients is equality of opportunity. In most societies the so called "achievers" are in the position that they are because of the simple fact that they had more opportunities to begin with. They were neither smarter nor more hard working that their classmates but through their social status or monetary freedom were able to explore the opportunities through availability and not through merit. So where is the natural right to achieve and produce there?
What bothers me with the model that objectivism presents is its complete disconnection with reality. It deals with absolutes. People are neither absolutely selfish nor absolutely altruistic, but a bit of both. It is finding an equilibrium that should be one's goal and not to force one over the other. The rejection of the principle of cooperation and compromise is the rejection of the basic reason for survival of mankind as species. Without cooperation our ancestors would turn out to be nothing more then food for predators.
The name for the topic is a bit distasteful but it provoked an interesting discussion. Objectivism is not stupid, it is interesting. However it is stupid to negate it completely or to follow it to the "t" as it is as unrealistic and harmful as communism.
When exploited to the fullest and used as a real economical and social model objectivism simply provides license for unlimited exploitation of the market (ironically parasitic) and gives a moralistic loophole for monopolization and plutocracy.