Thiel Warns Growing Disconnect between Expectations and Reality Could Fuel Socialist Turn in US
NEW YORK CITY - Venture capitalist Peter Thiel cautioned that widening economic frustrations, especially among young americans, could lead to increased support for socialist ideologies. Speaking following recent off-year election results that saw progressive candidates like Summer Mamdani win in New York, Thiel argued that a sense of economic disenfranchisement is driving voters toward radical proposals.
“If you proletarianize the young people, don’t be surprised they end up communist,” Thiel stated, adding, “Capitalism is not working for a lot of people in New york City. ItS not working for young people.” He acknowledged a growing sympathy for voters seeking solutions to issues like student debt and housing costs, noting that previous “tinkering at the margins” has proven ineffective.
The recent elections, described as a “wake-up call” for both parties by polling expert Frank Luntz, highlighted a focus on “affordability politics” – concerns over the cost of living, including inflation, housing, food, fuel, and electricity. Thiel observed that the rising popularity of socialism coincides with a period of heightened political engagement,fueled by a important gap between millennials’ expectations and their lived realities.
“There are some dimensions in which the millennials are better off than the boomers,” Thiel conceded. “But the gap between the expectations the boomer parents had for their kids and what those kids actually were able to do is just unusual. I don’t think there’s ever been a generation where the gap has been as extreme as for the millennials.”
Despite this, Thiel expressed skepticism about the likelihood of a traditional revolution, pointing to the historical association of communism and fascism with youth movements. He suggested that any potential shift toward socialism in the U.S. would likely be driven by older demographics, perhaps manifesting as demands for benefits like free healthcare – an “old people’s socialism” rather than a “young people’s socialism.” He noted the country’s aging population and declining birth rates contribute to this dynamic, creating a “gerontocracy.”
