What do the appointments of Tech billionaires such as Elon Musk, David Sacks and Vivek Ramaswamy bode for Donald Trump?
We are witnessing a shift in the world of Tech, which was rather democratic. This happened gradually, with an acceleration during the mandate of Joe Biden, which was marked by an increase in taxes and an anti-trust policy aimed at dismantling monopolies (with the appointment of Lina Khan in 2021 to Federal Trade Commission). We can see a withdrawal of this Tech which was originally democratic and sensitive to progressive ideas, in the field of immigration and on LGBT rights, among others. Today we find figures around Donald Trump who were anti-Trump, even in the movement Never Trump. This is the case, for example, of Marc Andreessen and Ben Horowitz, two Tech giants. This reversal has been catalyzed recently, but it has been taking place since the 1990s. It is interesting to compare it to anti-trust policies. There are two theories around these. On the Democratic side, we think that the monopoly goes against the market and the interests of consumers. This is a point of view shared in Europe. On the other hand, we find Trump’s position which is very Darwinist. It reflects the thinking of the Chicago school that the strongest deserves the dominant position. It is the victory of this ideology, with libertarian tendencies. Billionaires like Elon Musk find themselves there.
Vivek Ramaswamy, the Trump 2.0 who wants to “dismantle” the American state “with a chainsaw”
In itself, is it a problem to have someone like Musk in the President’s wake?
He built his empire following three watchwords. He disrupts a market, then he takes advantage of state aid, in order to create a monopoly. We see this with SpaceX, for example. He does the same thing on the political scene. He was not elected but influenced public opinion during the campaign. And we see that it has become established since the election of Donald Trump. He is omnipresent, right up to the Notre-Dame reopening ceremony where he was invited. There are risks of conflicts of interest. His companies are the subject of legal action – for fraud and insider trading. There are signals that reveal a recurring pattern of circumvention of the law. He reproduces this in international relations. It imposes itself in the Russian-American dialogue. It’s a way of working which questions both the economic world and the political world.
Is this a paradigm shift for the United States?
We are witnessing a shift from Donald Trump’s first term. The old industry was still present. Rex Tillerson, CEO of Exxon Mobile, had been appointed secretary of state, for example. Exxon is hydrocarbons, the old economy. Now the majority of Trump’s entourage is made up of Tech billionaires or business angels who invest in it. We are moving to another form of capitalism, which is dematerialized. The question of productivity no longer arises in the same way: how can we quantify and value it when we are dealing with dematerialized industries? These are companies for which the share of speculation is considerable.
David Sacks, Donald Trump’s “cryptocurrency czar”, an old traveling companion of Elon Musk, with many interests
These billionaires, including Elon Musk and David Sacks, display their libertarian beliefs. Has libertarianism infused Trumpism?
There are two types of libertarianism. One is in favor of the complete destruction of the State, the other for its reduction to nothing. Elon Musk is in favor of the second. Its objective is to empty the State of its regulatory substance, symbolized by two essential pillars: tax collection and market regulation. Which explains the interest in cryptocurrencies: they “disrupt” the markets. It is interesting to note that Donald Trump converted to cryptos, even though he was opposed to them. The paradox is that, in Musk’s perception, the State is also there to finance his companies. NASA, for example, awarded SpaceX a $2.9 billion contract to develop a lunar lander. Musk’s companies took advantage of the IRA (Inflation Reduction Act, a vast program of production subsidies and tax breaks, adopted by the Biden administration in 2022). The libertarian right needs the state to survive. This libertarianism is coupled with very conservative and reactionary ideas among these billionaires. Elon Musk is obsessed with the demographic decline of white men, to the point of flirting with eugenicist ideas. This ties in with economic Darwinism: we select the best genes.
Isn’t it paradoxical to want to reduce the role of the State after having benefited from public aid?
Musk is a homo economicus pragmatic. He is very rational and applies a cost-benefit calculation to his choices, without feeling or qualms. He is in a position where he can take on competitors. Mark Zuckerberg understood this very well: that’s why he called Donald Trump. Google is a potential next target. Elon Musk is for monopoly, except when he is not the one who owns it. His relationship to the law is very ambiguous. He bypasses it or uses it when it suits him. In my thesis, I develop the idea that capitalism means bending or playing with the rules to accumulate wealth. Donald Trump grew his fortune with tax avoidance. So he and Musk get along well in this regard. Elon Musk’s influence will, however, depend on how long his alliance with Donald Trump lasts: we are in the presence of two egos.
Elon Musk’s AI company raises $6 billion again
In a message on X, Elon Musk linked the relaxation of European regulations to the American presence within NATO. Are we entering into a terra incognita geopolitics?
The question is how the Europeans and the European Union will be able to defend their model when what risks dominating is the confrontation of the American and Chinese models. During his first term, Donald Trump sought to implode Europe, by playing on its differences, particularly with the rise of extremes. Blackmail will also take place on energy policy. Europe is not independent in terms of energy. The United States is and can use it as a means of pressure, which will directly affect the populations. The other development is that leaders of multinationals now negotiate as equals with heads of government.
Elon Musk created a company called United States Incorporated. What do we know about this firm?
I see it as a symptom of the desire to make the United States a business and to make the United States a monopoly, a model that applies to everyone. Others think it could be a way to create a cluster of companies linked to its activity for the government.
Our Trump Billionaires series
- How the “Silicon Valley mafia” takes power in Washington
- Peter Thiel, the “contrarian” billionaire in the shadow of Donald Trump
- David Sacks, Donald Trump’s “cryptocurrency czar”
- Vivek Ramaswamy, the Trump 2.0 who wants to “dismantle” the American state
- Tech and Trump or the victory of economic Darwinism
The richest administration in history
Ploutocracy This may be Donald Trump’s greatest scam – or his greatest masterstroke: the populist President’s administration is the richest and most plutocratic in history. The previous one was already the first Trump administration (2016-2020), with a cumulative wealth of its members of some 6 billion dollars. By comparison, the Biden administration was playing small, with 118 million total. Even excluding Elon Musk, the richest man in the world, who is not formally a member of the federal government (he is appointed head of an independent department), the new Trump administration will weigh nearly twenty billion dollars, according to estimates by the American press (the precise assets of some are unknown, such as Scott Bessent, Secretary of the Treasury). With the inclusion of Elon Musk, the cumulative fortune of the Trump team approaches $500 billion.
These figures also fluctuate upwards, following speculation on cryptocurrencies or the prices of companies that belong to or are associated with these billionaires. First among equalsLinda McMahon, Secretary of Education, has a personal fortune of $3 billion, according to the magazine Forbes. Unless it’s Howard Lutnick, Secretary of Commerce, who is worth between $2.2 billion and $4 billion, according to Bloomberg. The question is whose interests will guide these billionaires and millionaires: their own or those of their fellow citizens? The average income of an American family is $102,800, according to the latest Federal Reserve report.
