The Unlikely Trump Delegate: Peter Thiel’s Contrarian Stand

Peter Thiel, a Silicon Valley giant, has recently emerged as a Donald Trump delegate, despite his previous criticisms of the businessman-politician. This essay explores the reasoning behind his stand, underlining key aspects of free market capitalism and why it aligns with Thiel's views.

Understanding Peter Thiel and Free Market Capitalism

Peter Thiel, one of America's greatest innovators, offers a unique perspective on political and economic systems. His presence as a delegate to Donald Trump is a reflection of a deep understanding of market dynamics that many others in high financial positions have yet to grasp.

Thiel's reasoning can be summed up by his understanding that people make choices based on personal preferences, as demonstrated by the car preferences of his youth. As a child, families in America would choose Chevrolets and Hudsons, not Packards or Digital Computers. This may sound trivial, but it highlights a fundamental truth about people's behavior: They naturally buy products they like and avoid those they don't, which can be likened to the invisible hand at work.

The Free Market and Its Inevitability

Thiel’s grasp of the free market’s invisible hand poses a challenge to the ideologies of the past and the present. He knows that politics often rule economics, which in turn shapes the world. This approach contrasts sharply with the rigid planning often associated with communist or socialist systems. As Thiel has noted, the Soviet Union’s command economy (a model implemented under Marxist principles) did not result in prosperity but rather stagnation and inefficiency.

Thiel’s viewpoint is further supported by historical examples. Communist ideologies often fail to account for human behavior and the market’s ability to self-regulate. When the Soviet economy collapsed, it was a testament to the failed promise of centralized planning. These principles are also echoed in Thiel’s own success story, which is inextricably linked to the dynamics of free market capitalism.

The Contrast with Democratic Policies

The divergence between Thiel’s views and those of the Democratic Party becomes more evident when comparing their economic approaches. Democrats advocate for an economy controlled by a bureaucratic class similar to the European Union's. A notable example is the Affordable Care Act (Obamacare), which briefly seized control over 15% of America's economy and resulted in a disaster.

On the contrary, the success of free market capitalism is evident. America's relatively small and balanced government has led to remarkable prosperity. The U.S. economy is 20 times larger than Russia's, despite Russia having more than twice as many time zones. Thiel’s argument is that market-driven economies, with their unpredictability and natural cycles, have a better chance of enduring and thriving compared to centrally planned systems that are more prone to collapse.

A Man of Courage and Principle

Peter Thiel's decision to support Trump contrasts sharply with many of his peers in the tech and financial industries. Most billionaires have concluded that they 'can't fight city hall' and support the Democrats. This cynical outlook is driven by fear of what a big government could do to them, as evidenced by historical instances like FDR's intentions to jail Andrew Mellon and the government's scapegoating of Michael Milkin for its own mistakes.

Thiel, on the other hand, stands out as a man of courage and principle. His open stance is particularly noteworthy given his diverse public persona. As an openly gay billionaire, he is willing to face the hostility that comes with supporting Trump. This choice shows a commitment to principle over personal risk or comfort.

In conclusion, Peter Thiel’s decision to become a Donald Trump delegate is a testament to his deep understanding of free market capitalism and its benefits. His contrarian stand underscores the importance of economic freedom and the capacity of markets to thrive without heavy government intervention.