Thiel and Trump

In the spring of 2011, a year before he locked up the Republican primaries, Mitt Romney went to have breakfast with Peter Thiel in San Francisco. Thiel offered some political advice. Here’s the account from George Packer’s book, The Unwinding:

Romney said his campaign was going to focus on the economy, not social issues, and let the numbers make his argument. Thiel found him extremely polished and impressive, and he offered Romney a prediction: “I think the most pessimistic candidate is going to win, because if you are too optimistic it suggests that you’re out of touch.” In other words, it would be a mistake for Romney just to argue that Obama was incompetent, and that things would automatically be much better with a different president.

Romney didn’t take it up. Here’s Packer again:

It was a point that Romney couldn’t grasp. He assumed that the more optimistic candidate would always win. He assumed things were still fundamentally working.

I thought of this passage as I listened to Donald Trump’s speech at the RNC Convention. Twitter lit up with indignation even as he was speaking, as people denounced the speech as dark and full of despair.

An hour before Trump took the stage, Peter Thiel went up to speak. Not only did Thiel speak on behalf of Trump, he also went through the trouble of becoming one of his national delegates. I couldn’t help but wonder if Thiel gave exactly the same advice to Trump that he did to Romney: Go for darkness and pessimism.

If he did, Trump exploited it ruthlessly. Note that Trump’s closest competitor in the primaries, Ted Cruz, has enjoyed a longer relationship with Thiel. And he wasn’t exactly a ray of sunshine himself. Both Trump and Cruz have managed to weaponize pessimism. Perhaps it was already Trump’s instinct to offer a bleak vision and didn’t need any convincing from Thiel. Still, his success in the primaries is evidence for Thiel’s idea that pessimism is the right tone to strike.

I’ve seen many takes on why Thiel is supporting Trump. In general I think they overcomplicate. I’ve never spoken with Thiel about his motivations, and I suspect that no one except himself knows why he’s doing this. But let me share my own speculations on his support of Trump:

What important truth do very few people agree with you on? Being a contrarian means taking contrarian positions. What could provoke greater delight than to take the complete opposite stand from (almost literally) every single one of your peers, who are public and passionate about their distaste for Trump? When one sees this degree of unanimity on any position, can a good contrarian possibly resist taking the other side? It’s too delicious of an opportunity to pass up.

(This is also kind of the “he’s a troll” explanation.)

He agrees with Trump on policy. Thiel has become less supportive of free trade; Trump bashes NAFTA all the time. Neither are enthusiastic about foreign interventions. Both want to blow up political correctness. Both have made positive noises on single payer healthcare, as well as raising the minimum wage. Both want to “build big things.” And isn’t Trump quite friendly towards the LGBTQ community? On a lot of major issues, the two are at least rhetorically aligned. When else is Thiel going to get this mix of left-right positions?

Still, I think that Thiel’s agreement with Trump on policy is being over-indexed by most commentators. A commitment to detailed policy proposals isn’t the key to understanding either man.

By the way, I don’t think that using Thiel’s background is the right way to understand the relationship. Thiel doesn’t make a big deal out of his identity, and in some cases you can read contradictions into them. It’s better to start instead from his beliefs.

He really doesn’t like Clinton. Thiel founded the conservative Stanford Review in the late-’80s, and published The Diversity Myth in 1996. All indications are that he was a righteous Republican in the ‘90s. And what unified all Republicans then? A hatred of the Clintons. It could be so simple that Thiel really doesn’t want the Clintons back in the White House.

He’s an accelerationist. Here’s the explanation I like the least: He’s supporting Trump to hasten the collapse of capitalist democracy/a functional government/social institutions. I think that Thiel’s distaste for democracy, if it even exists, is overblown. Thiel’s a fan of Benjamin Friedman’s work, The Moral Consequences of Economic Growth. He wants to see growth more than anything else, so that people can come together to discuss how to increase the pie. That’s as opposed to having no growth, in which people bicker about how to divide a static pie. Everything is worse when the pie shrinks.

Consider his most original essay, The Optimistic Thought Experiment. He considers it foolish and irresponsible to make bets on the end of the world. This was quite a big theme for him before he took up discussing technological pessimism.

One last thing: Two of his most famous philanthropic ventures involve getting people to drop out of college and to create self-governing societies. I’ve seen people refer to these to prove that Thiel wants society to blow up after all. But that’s quite wrong. Thiel is not trying to blow anything up. Instead, he’s advocating to exit decaying institutions, and to build new ones instead.

Hedging his positions. Thiel used to be a derivatives trader and managed a hedge fund. According to the betting markets right now, Trump is around 30% likely to win. Most of Thiel’s peers are rooting for the other side, and his support for Trump can be a hedge for the tech sector as a whole.

Potential payoff. There could be a lot for Thiel if Trump wins; traders have made fortunes from far worse odds. A cabinet position, perhaps? I’ve cheekily suggested that Thiel would make an excellent Secretary of Defense. The Pentagon has the biggest budget and a mandate to develop new technologies. Imagine what Thiel can do with the Army Corps of Engineers, which has worked on the Panama Canal, the Manhattan Project, and the Kennedy Space Center.

$500,000 was a small price to pay for getting in on Facebook early; becoming a delegate and speaking at a convention is a cheaper price still, for a far greater potential payoff. And in any case, Thiel’s funding of various unpopular causes has already sufficiently alienated him with polite society; he’s not about to lose many followers now.

And it’s not just the direct personal payoff. With the executive branch on his side, he stands to help out a lot of his portfolio companies as well. Many of his investments are in high-regulated industries, and stand to benefit a great deal from federal contracts, not to mention executive relief from Energy, Health and Human Services, Education, and on and on.


I wasn’t so surprised to learn that Thiel had become a delegate for Trump when news broke in May. Certainly I didn’t expect for him to go through the hassles of actually becoming a delegate, but his declared support needn’t have shocked. This is the sort of thing he does, and in this case I expect that he acted with gusto.

Here’s a not quite related point, to conclude: In 2014, Thiel said that Trump is “sort of symptomatic of everything that is wrong with New York City.” I’d love for him to unpack that. What is so bad about New York, and about the culture of the east coast more generally? And which person embodies the very best of New York?

Addendum, 9.6,16: Thiel publishes an op-ed in the Washington Post on his support of Trump. It focuses on his belief that Trump will improve the effectiveness of government.

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