I think that Thiel’s perspective on economy is fundamentally Marxist. Like, the rich getting richer by the power of compound interest, whether that means investing their money in business, buying political power to get unfair advantage over their competitors, etc.
I think Thiel’s answer would be that in a world of 0 interests rates the rich don’t really get richer by the power of compound interests. All the profits get competed away.
Criticism of academia as a pyramid scheme and gatekeeping institution, also nothing new. Brian Caplan wrote a book about it.
The book was written after most of the talk, so it’s not a basis for Thiels thoughts.
Thiel does speak about all asset classes not really providing the returns that the LP’s desire.
The interview with Thiel and Eric Schmitt is good in this regard. Google holding 50 billion on it’s balance sheet because they don’t see any way to invest that in a profitable way is a good illustration of those dynamics.
I think Thiel’s answer would be that in a world of 0 interests rates the rich don’t really get richer by the power of compound interests. All the profits get competed away.
The book was written after most of the talk, so it’s not a basis for Thiels thoughts.
Yes, but part of risk is that it comes with people losing their fortune. Elon Musk is richer then any Rotschield.
Thiel does speak about all asset classes not really providing the returns that the LP’s desire.
The interview with Thiel and Eric Schmitt is good in this regard. Google holding 50 billion on it’s balance sheet because they don’t see any way to invest that in a profitable way is a good illustration of those dynamics.