And it is that stuckness — that profound limitation — which leads Thiel to his conclusions about democracy. It’s a bit like a child insisting that a dog ate his homework. Blaming welfarism, feminism, progressivism, socialism…or any other “social justice” agenda for the failures of capitalism is…well, it’s just stupid. Really stupid. Capitalism is its own worst enemy, and, with a brief and unique exception of laissez faire in Sweden during the late 1800s, has otherwise universally ended up eating its own tail without socialistic and democratic reforms. Why? Because of natural monopolies, resource depletion, market saturation, the spread of price-inelastic demand across most commodities, lack of profit incentive for public goods, increasing concentrations of wealth and exponentially expanding wealth disparities, negative externalities, inevitable wage stagnation, and a host of other factors. Democracy has absolutely nothing to do with any of these. In fact, it is usually democracy and socialized approaches that contain capitalism’s drive to self-immolate; they are the only reason capitalism’s inevitable death has been delayed.
So, just like the Presidential candidate Thiel supported, and the counterproductive US economic agenda playing itself out now around the globe, Thiel’s ideas in this area are woefully misinformed and, ultimately, really destructive.
My 2 cents.
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