David Runciman, 23 September 2021
Libertarians would have us believe that unregulated, free-market capitalism is somehow diametrically opposed to state capitalism. One encourages innovation; the other stifles it. What Peter Thiel demonstrates is that unregulated, free-market capitalism is in fact closely aligned to state capitalism. Deregulation means that nothing constrains the monopoly power of the security state and nothing gets in the way of people selling it their bogus and corrupting wares. This alliance helps explain the weird anomaly of Thiel’s persona. He’s like a cross between Joe Pesci in Goodfellas – a man who will stab you in the eye with a ballpoint pen if you cross him – and Richard Branson, another so-called entrepreneur who makes most of his money by capturing state-controlled contracts (Virgin Rail, Virgin Atlantic, Virgin Media). Branson, unlike Thiel, is a bit of a hippy and mouths most of the liberal pieties, including about climate change. But it doesn’t really matter what the philosophy is. The business model is the same: get as close as you can to the people who control the protection rackets.