I
yeah How does democracy end?In his elegant book, The Restoration of Liberal Democracy, published after Trump’s 2016 election, David Runciman made a startling point: the liberal democracies we take for granted will not last forever, but they will not fail in the ways we’ve seen them in the past: without revolution, military coup, or breakdown of social order. Moving forward through failure In an unexpected way. The implication was that people who compare it to what happened in Germany in the 1930s are mistaken.

Until a few weeks ago, that seemed like wise advice. But then something changed: key sectors of Silicon Valley, a Democratic stronghold for decades, began to support Trump. In 2016, contrarian billionaire and PayPal co-founder Peter Thiel was the only prominent Silicon Valley figure to endorse Trump, which merely confirmed the fact that he was a Silicon Valley legal outcast. But in recent weeks, many of Silicon Valley’s bigwigs (Elon Musk, Marc Andreessen, and David Sachs, to name just three) have revealed themselves as Trump supporters and donors. Musk has set up a pro-Republican political action committee (super PAC) and is donating to it. On June 6, venture capitalist Sachs hosted a $300,000-a-person fundraising dinner at Trump’s San Francisco mansion.

Why the sudden interest in politics? It’s probably a combination of several factors. First, Biden’s billionaire tax plan (and his administration’s antitrust litigation enthusiasm). Second, Trump’s newfound enthusiasm for cryptocurrency. Third, Biden has raised far more money for his campaign. And finally, and most importantly, Trump’s momentum was beginning to look unstoppable even before Biden dropped out.

The last two factors are reminiscent of the 1930s. In 1932, the Nazi Party was in serious financial trouble, and when Hitler became chancellor the following year, he personally appealed to business leaders for help. Funds were raised from 17 different business groups, with the largest donation coming from
IG Farben and Deutsche Bank
At the time, these donations must have seemed like a shrewd gamble to the businessmen who donated them. But as historian Adam Tooze wrote in his landmark book on the period, it also meant that German businessmen “were willing to cooperate in the destruction of German political pluralism.” In return, according to Tooze, German business owners and managers were given unprecedented powers to control their employees, collective bargaining was abolished, and wages were frozen at relatively low levels. Corporate profits and business investment grew rapidly. Fascism had been good for business, but it wasn’t anymore.

I wonder if these thoughts were going through the minds of the tech titans enjoying a $300,000 dinner in San Francisco that June night. My guess is no, they’re not. Silicon Valley residents don’t care much about history because they’re in the business of creating the future, so there’s nothing to learn from the past.

That’s a pity, because history has some lessons for them. The German businessmen who decided to support Hitler in 1933 may not have known exactly what he was up to for Germany, and probably knew nothing about the plans for the “Final Solution.” But David Sachs’ dinner guests have no such excuse.
Project 2025
President Trump’s second term plans are available online in a 900-page document.

It’s an interesting read. It has four core objectives: protecting children and families, dismantling the administrative state, defending borders, and restoring “God-given” individual liberties. But essentially,
A huge expansion of presidential powers There are many hysterical proposals, including putting the Department of Justice under Presidential control, replacing nonpartisan civil servants with loyalist ones, rolling back environmental laws, mass deportations, and removing “sexual orientation and gender identity, diversity, equity and inclusion, gender, gender equality, gender equity, gender sensitivity, abortion, reproductive health and reproductive rights” from all federal rules, agency regulations, contracts, grants and laws.

The rationale for Project 2025 was a concern that Trump had no idea how to use his new powers when he came to power in 2016, and that he certainly will not do so next time. As public concern about the document has grown, he has tried to distance himself from it. This may be because he thinks he won’t need a plan if elected. Speaking recently at a Christian convention in Florida, he said: “Go out and vote, this time. You don’t have to vote anymore. Four more years and we’ll take care of it. We’ll all be sorted out. My beautiful Christian people, you don’t have to vote anymore.”

The lesson? Be careful what you wish for. Copycats, Silicon Valley.

What I’m Reading

Where to start?
Tim Harford said:
How do we fix Britain? Here’s how” in Financial Times.

False balance
There’s a thoughtful Substack by historian Timothy Snyder.
Two-sidednessThe harmful delusions of mainstream media.

In the Ether
In a skeptical blog post in Molly White’s newsletter, Citation Needed, she writes:
When cryptocurrency policy becomes an election issue.