Peter Thiel on Baby Boomers and Bailouts

Peter Thiel did a 25 minute video interview on Big Think, a wonderful site if you're looking for video brain food. He answered questions from Scott Summers, Will Wilkinson, Arnold Kling, and others. Embedded below. Full text transcript is available on the page. Some excerpts:

On a decreasing appetite for bailouts:

With respect to Dubai, the basic mistake people made was they assumed that it was all part of the United Arab Emirates. Everybody was in the same boat, Abu Dhabi had lots of money, and they would help Dubai out. In reality, Abu Dhabi was probably quite resentful of the shiny and glittering and fake city known as Dubai and when push came to shove didn't really want to give them more money. And I think that kind of emotional or political or social phenomenon is going to be much more widespread and the question that will come to the fore in the next few years is will Germany bail out Greece or Spain, or Italy, or Eastern Europe? Will the responsible people bailout those they deem to be less responsible? If General Motors goes bankrupt again, will it get a second bailout? Will there be a second bailout for the banks? Will there be a second stimulus bill? I think the answer to all of these things is, no.

On thinking about what the world will look like in 20 years rather than six months:

There have been many people ask many questions about whether the recession will end with the 'U' or 'L' or a 'V' shaped recovery and sort of a lot about the tactical questions, you know, how high is the employment rate going to go, is it ticking down, is things turning a corner. I tend to think the really important questions are not about the next six months, but are about the next 20 years. The next six months is driven by the financial system liquidity, what central banks do, what they don't do. The next 20 years are driven by science, technology, a set of questions that are very different from the ones people are focused on.

On his least favorite economist:

My villain in economics is clearer. I believe the villain is Keynes and there was a Keynes line that in the long run we are all dead. Whether or not that is true, I believe that in the long run Keynesianism will be dead and that the problem with never thinking about the long run is that in the long run, the short run becomes the long run. And I wonder whether the crisis of 2008-2009 was not just a crisis about finance or about technology, but also a crisis about short run thinking and it was a point in time where short run thinking had run out and there was no more time to think about the short term and that actually a lot of long term problems we have been putting off and deferring had finally come home to roost.

On his favorite thinker overall:

My favorite thinker remains a French philosopher named Rene Girard. He developed an account of human nature in which one thinks very hard about the question of imitation and the role it plays in the ways in which culture and societies form.

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Here are my past posts on Thiel. Here's my post of icons / heroes.

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