Rand's childhood change from prosperity to poverty really hurt her. There's no doubt about it. And the the seizure of her father's store in the name of the people is the triggering event. What was supposed to have happened in the "worker's paradise" never came to pass. And from the failure of the worker's paradise to come to fruition, Rand draws the conclusion that people should make no attempt to care about others. Apparently, the "in the name of the people" is an indicator of attempts to do good for others.
Keep in mind that Howard was just sucker-punched by an educational institution. If he drew conclusions following lines of reason similar to Rand's, he would have to conclude that education is harmful, mean, and not to be pursued. But the ugliness of those individuals who made their list and stuck Howard's name onto it doesn't not automatically spread to the entire enterprise of education.