Paul Krugman’s recent opinion piece in The New York Times (NYT), titled “Tech Bro Elegy: How Did JD Vance Get Here?”, presents a sharp critique of JD Vance’s political rise and the influential role of technology billionaires, particularly those invested in cryptocurrency, in his ascent.
Krugman is a prominent American economist known for his work in international economics, trade theory, and economic geography. He received the Nobel Memorial Prize in Economic Sciences in 2008 for his contributions to New Trade Theory and New Economic Geography. Krugman has also gained widespread recognition as a columnist and author, writing extensively on economic and political issues for The New York Times. His analyses often focus on fiscal policy, income inequality, and the effects of globalization. Additionally, Krugman is a professor at the City University of New York and has written several influential books on economics.
In Monday’s NYT opinion piece, Krugman explores the complex dynamics that have propelled Vance, a seemingly untalented politician, to the position of Republican vice-presidential nominee, backed by a powerful but small group of tech moguls.
Krugman begins by highlighting JD Vance’s inadequacies as a politician, referencing Vance’s poorly received attempt to downplay controversial remarks about “childless cat ladies” and Vance’s baseless accusation that Vice President Kamala Harris opposed the child tax credit. Despite these gaffes, Krugman points out, JD Vance has managed to secure significant political clout, primarily through the financial backing of tech billionaires like Peter Thiel, who invested heavily in Vance’s 2022 Senate campaign.
The piece underscores the peculiar alliance between JD Vance and a segment of the tech community that once briefly supported Robert F. Kennedy Jr. but has since shifted its focus. He says these tech enthusiasts, described as having right-wing political leanings, have largely abandoned their libertarian ideals in favor of aligning with Donald Trump, drawn by Vance’s aggressive stances on immigration and political retribution.
Krugman points out that this alignment is not representative of the entire tech sector but rather a specific subset of ultra-wealthy individuals. He mentions that this group’s support for Trump and Vance is closely tied to their interests in cryptocurrency. Krugman cites the example of David Sacks, a pro-Trump tech mogul who has lauded Bitcoin as fulfilling PayPal’s original vision of a “new world currency.” Similarly, he notes that Peter Thiel’s Founders Fund has made substantial investments in cryptocurrencies, and JD Vance has been actively promoting industry-friendly legislation to support the crypto market.
Krugman critiques the economic utility of Bitcoin, alleging that it remains largely irrelevant for everyday transactions outside the crypto ecosystem, except for illicit activities like money laundering and extortion. Nevertheless, he claims, crypto supporters believe they have found an ally in Trump, who, despite his past dismissal of Bitcoin as a “scam,” now frames attacks on crypto as coming from “left-wing fascists.”
The article highlights the inclusion of crypto-friendly policies in the 2024 Republican Party platform, an indication of the significant influence that crypto advocates have on the party’s agenda. It also states that Trump has even suggested the creation of a national Bitcoin reserve, which Krugman sees as a misguided attempt to bail out a problematic and environmentally harmful industry.
In general, Krugman observes that paranoid politics is surprisingly common among the ultra-wealthy, not just in the tech sector. He attributes this to the tendency of billionaires to be surrounded by yes-men and a sense of grievance over the limitations of their wealth.
Krugman concludes by arguing that despite JD Vance’s efforts to present himself as a champion of the working class, Vance’s true allegiance lies with a tech-centric ethos that is far removed from populism.
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