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  • Peter Thiel’s Warning: Why Capitalism is Failing the Youth and Fueling Socialism’s Rise

    Peter Thiel's Warning: Why Capitalism is Failing the Youth and Fueling Socialism's Rise

    Based on the original article: Peter Thiel: Capitalism Isn’t Working for Young People by Sean Fischer, published in The Free Press.

    In a recent interview with The Free Press, billionaire investor Peter Thiel revisited his prescient 2020 email to Facebook executives, which has resurfaced amid the surprising victory of self-proclaimed democratic socialist Zohran Mamdani in the New York City mayoral race. Thiel, known for co-founding PayPal and Palantir, argues that the growing appeal of socialism among millennials isn’t mere entitlement—it’s a rational response to a broken economic system stacked against them. As of November 2025, with student debt surpassing $2 trillion and housing prices out of reach in major cities, Thiel’s insights feel more urgent than ever.

    The 2020 Email That Saw the Future

    Thiel’s email, sent in January 2020 to figures like Mark Zuckerberg and Sheryl Sandberg, urged tech leaders to stop dismissing young people’s pro-socialist leanings as ignorance. “When 70% of Millennials say they are pro-socialist,” he wrote, “we need to do better than simply dismiss them by saying that they are stupid or entitled or brainwashed; we should try and understand why.” This message, now viral, was inspired by Thiel’s long-standing concerns, dating back to his Thiel Fellowship program in 2010, which encouraged students to skip college amid skyrocketing tuition costs.

    In the interview, conducted by Sean Fischer on November 7, 2025, Thiel ties this generational discontent to core economic issues. He points to student debt as a “generational conflict,” noting how graduates from the 1970s left college debt-free, while today’s millennials face burdensome loans after often unfulfilling educations. National student debt has ballooned from $300 billion in 2000 to over $2 trillion today, creating a system that proletarianizes the young and pushes them toward radical alternatives.

    Thiel extends this critique to housing, which he sees as central to 80% of economic debates and culture wars. Strict zoning laws and building restrictions inflate property values for boomers while locking millennials out of homeownership. “If you proletarianize the young people, you shouldn’t be surprised if they eventually become communist,” Thiel quips, framing the issue as a ruptured “generational compact”—the promise that following the same path as previous generations will yield similar success.

    Mamdani’s Win: A Symptom of Systemic Failure

    Mamdani’s landslide in the NYC mayoral election, driven by voters under 30 burdened by high rents and student debt, validates Thiel’s thesis. Exit polls showed his support from college-educated renters and city transplants, groups alienated by unaffordable living. Thiel, while biased against socialism, credits Mamdani for at least addressing these problems head-on, unlike establishment figures who tinker at the margins.

    Thiel doesn’t endorse Mamdani’s policies—rent controls, he argues, could worsen housing shortages—but sees the victory as a wake-up call. “Capitalism doesn’t work for me,” he says, capturing the sentiment of disillusioned youth who view the system as a “racket.” This shift isn’t absolute pro-socialism but a relative rejection of capitalism’s failures. Thiel warns that ignoring these issues invites solutions “outside the Overton Window,” the acceptable range of political discourse.

    Parallels to Trump and the Intensification of Politics

    Drawing comparisons to Donald Trump, Thiel notes both leaders ran “vibes-based” campaigns fueled by grievance and charisma, attracting unlikely allies. Trump’s 2016 rise stemmed from economic despair in the Midwest, ravaged by globalization, much like Mamdani’s appeal in Brooklyn amid urban inequality. Both expose the “fakeness” of establishment politicians—figures like Jeb Bush or Andrew Cuomo, whom Thiel criticizes for lacking authenticity.

    This points to a broader trend: politics as class warfare in a zero-sum economy. Thiel laments a “multi-decade political bull market” where engagement intensifies because stakes feel existential. He provocatively suggests lower voter turnout would signal a healthier society, where government matters less because prosperity is widespread. High turnout, as in NYC, reflects desperation when growth is uneven and problems fester.

    Thiel traces this back to post-1988 complacency under presidents from George H.W. Bush to Barack Obama, who overlooked rust belt decline and urban affordability crises. Today, with millennials facing dashed expectations—projected by boomer parents onto a harsher reality—the gap between generations is unprecedented.

    Revolution or Gerontocracy? Thiel’s Outlook

    Thiel draws historical parallels to revolutions led by frustrated elites, like Robespierre or Lenin, seeing echoes in downwardly mobile millennials. Yet he doubts a full-blown uprising, citing demographics: fewer young people due to declining birth rates mean any “socialism” might resemble “old people’s socialism,” focused on healthcare rather than youthful upheaval.

    If America surprises positively in a decade, Thiel says, it would mean leaders finally tackle these issues—solving student debt and housing without endless media cycles. Ironically, the interview itself signals ongoing dysfunction: “The reason we’re having this conversation is that we both suspect that this is going to be the first of many.”

    Thiel’s message is clear: Dismiss young socialists at your peril. Capitalism’s flaws—unaffordable education, inaccessible housing, and unequal growth—are breeding discontent. Whether through reform or radicalism, change is coming. As Thiel puts it, if the establishment’s best retort is name-calling, “you are going to keep losing.”

  • Are Universities and Colleges Becoming Obsolete? A Comprehensive Look at the Debate

    It is undeniable that universities and colleges have played a crucial role in the development and advancement of society for centuries. These institutions have provided a platform for individuals to gain knowledge, skills, and credentials that are necessary for success in their chosen fields. However, in recent years, there has been a growing debate about whether or not universities and colleges are still necessary or if they have become obsolete.

    There are several arguments that suggest that universities and colleges may be becoming obsolete. One argument is that they are no longer the only or even the best source of education and knowledge. With the proliferation of the internet and the availability of online courses, individuals can now access a wide range of educational resources without ever setting foot on a college campus. In fact, many of these online resources are offered by prestigious universities and are taught by respected professors. This means that individuals can receive a high-quality education from the comfort of their own homes, at their own pace, and at a fraction of the cost of traditional college tuition.

    Another argument is that the traditional four-year college experience is becoming increasingly irrelevant and inadequate for preparing students for the workforce. The rapidly changing nature of the job market means that many of the skills that students learn in college are no longer applicable by the time they graduate. This has led to a growing number of college graduates who are unable to find jobs in their field of study or who are underemployed.

    Furthermore, the cost of college tuition has skyrocketed in recent years, making it increasingly difficult for students to afford a college education. The burden of student debt has reached crisis levels, with the average student graduating with over $30,000 in debt. This debt can take decades to pay off and can significantly impact an individual’s ability to achieve financial stability and success.

    Despite these arguments, there are also several counterarguments that suggest that universities and colleges are still necessary and valuable. One argument is that these institutions provide a well-rounded education that prepares students for success in their personal and professional lives. Universities and colleges offer a wide range of courses and extracurricular activities that allow students to develop important skills such as critical thinking, problem-solving, communication, and collaboration. These skills are valuable not just in the workforce but also in everyday life.

    Additionally, universities and colleges provide access to a network of knowledgeable professors, experts, and professionals who can mentor and guide students in their studies and careers. These relationships can be invaluable in helping students to gain valuable experience and connections that can be crucial in their future success.

    Another argument is that while online education may be accessible and affordable, it cannot replicate the in-person experience of college. The social aspect of college, including the opportunity to interact with a diverse group of people and participate in extracurricular activities, is an important part of the college experience. This experience can be beneficial for personal and professional development and can be difficult to replicate online.

    Overall, it is clear that there are valid arguments on both sides of the debate about whether or not universities and colleges are becoming obsolete. While it is undeniable that the education landscape is changing and that there are alternative options for individuals seeking a college education, universities and colleges still offer valuable benefits that cannot be found elsewhere. It is important for individuals to carefully consider their options and determine the best path for their own personal and professional development.