Francis Fukuyama: A Conversation with Peter Thiel

Salient points:

1. "In the history of the modern world, inequality has only been ended through communist revolution, war or deflationary economic collapse. It’s a disturbing question which of these three is going to happen today, or if there’s a fourth way out."

2. The left wants income inequality decreased via taxation, the right wants reduced taxes because government spends its tax revenue wastefully, inefficiently (Thiel gives examples). Both are correct assessments of a problem, but both propose solutions that solve only one of the problems - these are the 'Blind Spots' of the Left and Right. Need a solution that solves both problems.

3. Technological deceleration is a blindspot common to both the left and right. While Internet and Finance are seeing technological acceleration, other big areas of the economy are seeing technological deceleration - transportation, energy the two main ones.

4. "There has been a tremendous [technological] slowdown everywhere else, however. Look at transportation, for example: Literally, we haven’t been moving any faster. The energy shock has broadened to a commodity crisis. In many other areas the present has not lived up to the lofty expectations we had. I think the advanced economies of the world fundamentally grow through technological progress, and as their rate of progress slows, they will have less growth. This creates incredible pressures on our political systems. I think the political system at its core works when it crafts compromises in which most people benefit most of the time. When there’s no growth, politics becomes a zero-sum game in which there’s a loser for every winner. Most of the losers will come to suspect that the winners are involved in some kind of racket. So I think there’s a close link between technological deceleration and increasing cynicism and pessimism about politics and economics."

5. ... I give up, ran out of time. This is only covers the first ~25% of it. Just read the whole thing, awesome interview, probably one of Thiel's best and most thorough.

This should make fair-minded Thiel-haters reconsider: he treats government intervention very fairly and is open and thoughtful, even considering the idea of tariffs as a potential policy approach.

Excellent interview.

wow! that was a very insightful interview. the idea of technological stagnation is something which I discussed with friends over the last 10 years. really deserves some more attention.

Peter Thiel is awesome. This is a long read, but well worth it.