Showing posts with label John Gray. Show all posts
Showing posts with label John Gray. Show all posts

Thursday, January 18, 2024

Peter Thiel is so mistaken about homeownership in his interview with John Gray

 Peter Thiel says "To unshackle ourselves economically, one should start by attacking the extraordinarily distorted real estate market", but never once mentions how the prime culprits of the distortion were and are all Federal.

These were the commoditization of housing by the so-called Taxpayer Relief Act of 1997 under Clinton and Gingrich, followed by Federal Reserve interest rate suppression under Obama after the collapse of the ensuing housing bubble it caused, re-inflating that bubble.

To Thiel "interest rates went steadily down", as if by the influence of some mysterious force. What could it be? He is not i n t e r e s t e d.

Nor does he mention a third Federal culprit, how the demand side for housing was and is distorted by 15% of the population swelling with foreign born in the UK and the US as a direct result of legally admitting millions of immigrants since 1990 in the US and since 1994 in the UK.

These are the legacies of the Bushes, Bill Clinton, John Major, and Tony Blair, now augmented by deliberate non-enforcement of the border in America by the likes of Obama and Biden, turbo-charging the demand side for housing, and prices with it, by flooding the country with illegal aliens.

Thiel observes that culturally "We became too risk-averse, too bureaucratic, too reliant on peer review in the sciences" somehow, but doesn't connect this to the aging demographics, even though he is aware of it. Not re-inflating the prices of homes of Baby Boomers would have been political suicide. He fancies this is now "over", but misses that the heirs of all this property are voters too.

This is not over.

Thiel is essentially a radical, as was Ronald Reagan and also Margaret Thatcher. He completely misses how the libertarian impulse to deregulate under Reagan and Thatcher led in a straight line to the housing catastrophe we all live with these many years later. His libertarianism is myopic.

John Gray: "The difference is that this Truss wing of the Conservative Party wants to go back to Thatcher because they see that as a radical moment and they want to repeat the radical moments. But radical moments are very hard to keep repeating."

Peter Thiel: "They’re hard to repeat by doing the same thing. It was a one-time move to deregulate and lower taxes and then it’s not clear that doing it the second time does much good. ... The Reagan and Thatcher administrations ... allowed more companies to be acquired, more M&A activity to happen. It was a somewhat brutal but very powerful reorganization of society that was possible and in fact the right thing to do in the 1980s."

Incessant headlines about deep American discontent tell us we don't particularly like this now reorganized society. The new world order means your kid is saddled with horrible college debt, can't find a decent job, has to live at home with you, can't buy a house, can't get married, can't have children. 

But Thiel is still dreaming the pipe dream of "exponential growth" to solve these problems. He hopes technology will come to the rescue in the form of remote work:

"Is there some way to reopen a frontier in real estate? The possibility where I think the jury is very out, though it doesn’t look that promising in 2023, would be remote work. Could the internet be a way that people are not stuck in these cities? And that would reset all these real estate values tremendously because even in a rather densely populated country like England, there is plenty of space if you’re not forced to be within the green belt of London itself. And in the United States even more so."

The interview is here.  


Tuesday, April 2, 2019

John Gray: The possibility that millions value some things more than economic gain is not considered by the British political classes

Sounds oddly familiar.

Brexit has left the British political class trapped by its own history:

Persistently denying respect to Leave voters in this way can only bring to Britain the dangerous populism that is steadily marching across the European continent.

Thursday, April 5, 2018

John Gray identifies the apocalyptic faith animating Antifa

Here, in The Times Literary Supplement:

The hyper-liberal demand that public spaces be purged of symbols of past oppression continues a post-Cold War fantasy of the end of history.

Saturday, May 21, 2016

Goodbye libertarian moment, we hardly knew thee: "Man has a proclivity for safety, not liberty"

James E. Miller at Takimag, here:

Man has a proclivity for safety, not liberty. Human history is littered with war after war, conflict after conflict. Whatever liberty we eke out of our constant warring state is always in danger of being lost. As philosopher John Gray noted, “To think of humans as freedom-loving, you must be ready to view nearly all of history as a mistake.”

As the ancients maintained but we never seem to remember, even when we study them:


WAR IS THE FATHER OF EVERYTHING.