NATIONAL PRESS CLUB NEWSMAKER WITH PETER THIELSUBJECT: THE PRESIDENTIAL ELECTION OF 2016
MODERATOR: THOMAS BURR, PRESIDENT OF THE NATIONAL PRESS CLUBLOCATION: THE HOLEMAN LOUNGE, WASHINGTON, D.C.
TIME: 11:00 A.M.
DATE: MONDAY, OCTOBER 31, 2016

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THOMAS BURR: (Sounds gavel.) Welcome to the National Press Club. My
name is Thomas Burr; I'm the Washington correspondent for the Salt Lake Tribune andthe 109th President of the National Press Club. Our guest today is billionaire,businessman and tech pioneer, Peter Thiel.
I would like to welcome our Public Radio and C-SPAN audiences, and want toremind you that you can follow the action live on Twitter using the hashtag NPClive.
That's NPClive. Today’s format follows the same tradition of National Press Club
luncheons with some remarks by our guest, and then a question and answer session
concluding in an hour. I'll ask as many questions submitted from journalists online andfrom the reporters in the audience.
Peter Thiel is a man who wears many hats. He helped found PayPal and Palantir
Technologies. He's a venture capitalist. He successfully sued Gawker and is a rare vocal
supporter of Donald Trump in Silicon Valley. That's what he’s here to talk about today.
Thiel, a billionaire, has used his money recently to invest in electing Trump as
America's next president. Before garnering headlines for that, he used his reserves to fund
Facebook, LinkedIn, Yelp! and other companies associated with the so-called PayPal
mafia, and his own Thiel Foundation and Thiel Fellowship.
Thiel’s plans to donate $1.25 million towards the efforts to elect Trump haveraised eyebrows in liberal-leaning Silicon Valley. The New York Times called him
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“toxic” among technology investors and entrepreneurs. But Facebook CEO, Mark
Zuckerberg, a Democratic donor, defended Thiel’s choice saying it would set a bad
precedent to cut ties with him because of his political views.
Thiel laid out his support for the Republican presidential candidate in a prime
time speech at the Republican National Convention in July. He didn't donate to thecampaign until earlier this month, announcing the contribution shortly after revelations ofrecorded comments Trump made about women. He said he’d like to contribute through a
combination of direct giving to the campaign and via Super PACs including $1 million
donation to the Super Pac, Make America #1.
In media circles, Thiel is best known for funding wrestler Hulk Hogan’s
successful lawsuit against Gawker. This irreverent news website ended up closing its
doors in August after filing for bankruptcy because of the ruling in the case. Thiel had
long feuded with the site which has outed him as gay nearly a decade earlier.
Thiel is a Stanford alum who bills himself as a contrarian and has backed
Libertarian politician Ron Paul. He’s also the author of books such as The Diversity
Myth, Multiculturalism and Political Intolerance on Campus; and Zero to One: Notes onStartups and How to Build the Future. Please help me welcome to the National Press
Club to talk about his political choices and motivations, Mr. Peter Thiel. (Applause)
MR. THIEL: Thank you very much for having me here. Everybody knows
we've been living through a crazy election year. Real events seem like the rehearsals for“Saturday Night Live.” Only an outbreak of insanity would seem to account for theunprecedented fact that this year a political outsider managed to win a major party
nomination.
To the people who are used to influencing our choice of leaders, to the wealthypeople who give money and the commentators who give reasons why, it all seems like abad dream. Donors don't want to find out how and why we got here. They just want tomove on. Come November 9th, they hope everyone else will go back to business as usual.
But it is just this heedlessness, this temptation to ignore difficult realities indulged
in by our most influential citizens that got us where we are today. A lot of successful
people are too proud to admit it, since it seems to put their success in question, but thetruth is no matter how crazy this election seems, it is less crazy than the condition of ourcountry. Just look at the generation that supplies most of our leaders. The baby boomers
are entering retirement in a state of actuarial bankruptcy. Sixty-four percent of those over
the age of 55 have less than a year’s worth of savings to their name.
That is a problem, especially when this is the only country where you have to pay
up to ten times as much for simple medicines as you would pay anywhere else. America's
overpriced healthcare system might help subsidize the rest of the world, but that doesn't
help the Americans who can't afford it, and they've started to notice.

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Our youngest citizens may not have huge medical bills, but their college tuition
keeps on increasing faster than the rate of inflation, adding more every year to our $1.3
trillion mountain of student debt. America has become the only country where students
take on loans they can never escape, not even by declaring bankruptcy. Stuck in thisbroken system, millennials are the first generation who expect their own lives to be worse
than the lives of their parents.
While American families’ expenses have been increasing relentlessly, theirincomes have been stagnant. In real dollars, the median household makes less money
today than it made 17 years ago. Nearly half of Americans wouldn't be able to come up
with $400 if they needed it for an emergency.
Yet while households struggle to keep up with the challenges of everyday life, thegovernment is wasting trillions of dollars of taxpayer money on far-away wars. Right
now, we're fighting five of them in Iraq, Syria, Libya, Yemen, and Somalia.
Now, not everyone is hurting. In the wealthy suburbs that ring Washington, D. C.,
people are doing just fine. Where I work in Silicon Valley, people are doing just great.
But most Americans don't live by the beltway or the San Francisco Bay. Most Americans
haven't been part of that prosperity. It shouldn't be surprising to see people vote forBernie Sanders or for Donald Trump, who’s the only outsider left in the race.
Very few people who vote for president have ever thought of doing something so
extreme as running for president. The people who run are often polarizing. This election
year, both major candidates are imperfect people, to say the least. Now, I don't agree witheverything Donald Trump has said and done, and I don't think the millions of otherpeople voting for him do, either. Nobody thinks his comments about women were
acceptable. I agree, they were clearly offensive and inappropriate.
But I don't think the voters pull the lever in order to endorse a candidate’s flaws.
It’s not a lack of judgment that leads Americans to vote for Trump. We're voting for
Trump because we judge the leadership of our country to have failed. This judgment has
been hard to accept for some of the country's most fortunate, socially prominent people.
It’s certainly been hard to accept for Silicon Valley where many people have learned tokeep quiet if they dissent from the coastal bubble.
Louder voices have sent a message that they do not intend to tolerate the views of
one-half of the country. This intolerance has taken on some bizarre forms. The Advocate,a magazine which once praised me as a gay innovator even published an article sayingthat as of now I am, and I quote, “Not a gay man” because I don't agree with theirpolitics. The lie behind the buzz word of diversity could not be made more clear. If you
don't conform, then you don't count as diverse, no matter what your personal background.
Faced with such contempt, why do voters still support Donald Trump? Even if
they think the American situation is serious, why would they think that Trump, of all
people, could make it any better? I think it’s because the big things that Trump gets right.
3For example, free trade has not worked out well for all of America. It helps Trump thatthe other side just doesn't get it. All of our leads preach free trade; the highly educatedpeople who make public policy explain that cheap imports make everyone a winner,
according to economic theory. But in actual practice, we've lost tens of thousands offactories and millions of jobs to foreign trade. The heartland has been devastated. Maybe
policymakers really believe that nobody loses, or maybe they don't worry about it too
much because they think they're among the winners.
The sheer size of the U. S. trade deficit shows that something has gone badly
wrong. The most developed country in the world should be exporting capital to lessdeveloped countries. Instead, the United States is importing more than $500 billion every
year. That money flows into financial assets, it distorts our economy in favor of morebanking and more financialization, and it gives the well connected people who benefit areason to defend the status quo. But not everyone benefits and the Trump voters know it.
I think Trump voters are also tired of war. We have been at war for 15 years andwe have spent more than $4.6 trillion, more than two million people have lost their lives,and more than 5,000 American soldiers have been killed. but we haven't won. The Bush
Administration promised that $50 billion could bring democracy to Iraq. Instead, we've
squandered 40 times as much to bring about chaos.
Yet, even after these bipartisan failures, the Democratic Party is more hawkish
today than at any time since it began the war in Vietnam. Harking back to the no fly zonethat Bill Clinton enforced over Iraq before Bush’s failed war, now Hillary Clinton has
called for a no fly zone over Syria. Incredibly, that would be a mistake even more
reckless than invading Iraq. Since most of the planes flying over Syria today are Russianplanes, Clinton's proposed course of action would do worse than involve us in a messy
civil war, it would risk a direct nuclear conflict.
What explains this eagerness to escalate a dangerous situation? How can Hillary
Clinton be so wildly over optimistic about the outcome of war? I would suggest that itcomes from a lot of practice. For a long time, our elites have been in the habit of denying
difficult realities. That's how bubbles form. Whenever there is a hard problem, but people
want to believe in an easy solution, they'll be tempted to deny reality and inflate a bubble.
Something about the experience of the baby boomers whose lives have been somuch easier than their parents’ or their children’s, has led them to buy into bubbles again
and again. The trade bubble says everyone’s a winner. The war bubble says victory’s justaround the corner. But these overoptimistic stories simply haven't been true and voters
are tired of being lied to.
It was both insane and somehow inevitable that D.C. insiders expected thiselection to be a rerun between the two political dynasties who led us through the twomore gigantic financial bubbles of our time. President George W. Bush presided over the
inflation of a housing bubble so big that its collapse is still causing economic stagnation
today.
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But what's strangely forgotten is that last decade’s housing bubble was just an
attempt to make up for the gains that had been lost in the decade before that. In the 1990s,
President Bill Clinton presided over an enormous stock market bubble and a devastatingcrash in 2000 just as his second term was coming to an end. That's how long the same
people have been pursuing the same disastrous policies.
Now that someone different is in the running, someone who rejects the false
reassuring stories that tell us everything is fine, his larger than life persona attracts a lotof attention. Nobody would suggest that Donald Trump is a humble man. But the big
things he’s right about amount to a much-needed dose of humility in our politics. Very
unusually for a presidential candidate, he has questioned the core concept of American
exceptionalism. He doesn't think the force of optimism alone can change reality without
hard work.
Just as much as it’s about making America great, Trump's agenda is about making
America a normal country. A normal country doesn't have a half trillion dollar trade
deficit. A normal country doesn't fight five simultaneous undeclared wars. In a normal
country, the government actually does its job. And today, it's important to recognize thatthe government has a job to do. Voters are tired of hearing conservative politicians saythat government never works. They know the government wasn't always this broken. The
Manhattan Project, the interstate highway system, the Apollo program, whatever you
think of these ventures, you cannot doubt the competence of the government that got
them done. But we have fallen very far from that standard. We cannot let free market
ideology serve as an excuse for decline.
No matter what happens in this election, what Trump represents isn't crazy andit’s not going away. He points toward a new Republican Party beyond the dogmas of
Reaganism. He points even beyond the remaking of one party to a new American politics
that overcomes denial, rejects bubble thinking and reckons with reality. When the
distracting spectacles of this election season are forgotten and the history of our time iswritten, the only important question will be whether or not that new politics came toolate. Thank you. (Applause)
MR. BURR: Thank you, Mr. Thiel. Appreciate you being here at the National
Press Club. Let’s start off with, as a part of our conversation, I think I want to get to a lotof topics. We have a few hundred questions, I think, already submitted from people. But
let’s talk about the campaign here. Your candidate has talked a lot about how what's
wrong with America. There are a lot of dissatisfied voters right now. Do you see thiselection as anything more than a contest to see who’ll be the next captain of the Titanic?
MR. THIEL: Well, I hope not. I have always had a bias of favoring outsider
candidates. I supported Ron Paul in ’08 and 2012. I supported Carly Fiorina early in thisrace so I have a strong bias for outsiders. I think the insiders are often much morepolished, they're talented politicians, but a lot of what they do does feel, to me, likerearranging deck chairs on the Titanic. So it’s precisely because I'm worried about that
5that I think we need to think a little bit outside the conventional policy box and we needto have a sort of broader public debate about the kinds of things we might want to do. But
certainly, I worry about the decline. I take it very seriously, and one of the things-- I
would have liked to see a race between Trump and Sanders because I think both of themviscerally felt the decline and viscerally-- they very much disagreed about what caused it,what to do about it, but that would have been a very different sort of debate.
What we have is a debate between one candidate who says everything is more orless fine, or it’s as good as it can be. And then another one who says we're on the Titanic,
it’s about to sink. And so I prefer the second one.
MR. BURR: You talk a lot about backing an outsider and how that's importantfor America. But isn't there also something to be said about somebody who understands
how Washington works better to actually get things done?
MR. THIEL: You know, we've been trying that for-- I would argue we've been
trying that for quite a long time. On the kinds of issues I talked about today, the trade
bubble, the war bubble, the globalization bubble, these various bubble policies, theinsiders have been getting it wrong for a long time. You know, they were asleep at theswitch when we had the dot com bubble in the ‘90s. They were even more asleep, I
would argue, when we had the housing bubble in the last decade.
And the insiders have somehow been doing very micro policy adjustments andthen letting these massive bubbles inflate on their watch. And so I think there is anargument-- the Trump point that he’s made repeatedly that Hillary's experienced, but it’s
bad experience, somehow resonates with me a lot.
MR. BURR: Has your support of Mr. Trump affected any relationships or closebusiness relationships in Silicon Valley?
MR. THIEL: You know, it certainly has generated a tremendous amount of
discussion, gotten a lot of pushback from people, to say the least. But I think myfriendships, close working business relationships, I think all those are very well intact.
MR. BURR: Do you have any other Silicon Valley businessmen you deal with
who are more privately supporting Mr. Trump and don't want to say it publicly?
MR. THIEL: You know, it's one of the strange things of doing this. It has
surfaced not a large number, but a small number of those people who all feel like they
can't say it in public, and what not and are, you know, happy that I've done it. So they've
sort of been conjured out of the ether, yes.
MR. BURR: Well, let me talk about that for a second. What have you learned
this election cycle about Silicon Valley’s appetite for political difference?

6MR. THIEL: Well, it’s more polarized than I realized. You know, I certainly-- I
thought of Silicon Valley as a fairly liberal, fairly democratic place, it overwhelmingly
backed Obama in 2008. But I didn't think-- I didn't think it was going to be this-- that
there would be this sort of a visceral reaction where-- you know, and again, you know,
most of the larger tech companies, you know, most of the-- many of these people havenot said you shouldn't be able to back Trump or anything like this, but it's surprising tome that anybody would say that you're beyond the pale for taking a position that's held byhalf the country, you know?
There are positions that are beyond the pale. There are extreme fringe views. I've
often supported, you know, fringe views in life extension or fringe views in sea studying,
which are very minority views. This is the first time I've done something that's actuallyconventional. It didn't feel contrarian. This was the first-- it’s like the first time I've done
something big in my life that was just what half the country believed in. And it’s been themost controversial thing ever, so that really surprised me.
MR. BURR: Has your company suffered any blowback because of yourposition?
MR. THIEL: I don't think so. I think that would be an even crazier thing. You
know, it's like I'm not Trump. You know, the founders of the companies I invest in are
not me. Their employees are not the founders, and if you sort of conflate two or three orfour groups of people like this, that's a really crazy thing to do. You know, perhaps weshould occasionally be held partially responsible for people who are one degree ofseparation from us. If you hold people responsible for people who are two degrees or
three degrees of separation, that way lies insanity.
MR. BURR: But just to clarify, you don't believe your company's faced any
blowback from consumers or other vendors you deal with because of your position?
MR. THIEL: Not in any meaningful way, no.
MR. BURR: In your RNC convention speech, you said, “Where I work in
Silicon Valley, it's hard to see where America has gone wrong.” Do you think Silicon
Valley understands America? And what's that source of disconnect there?
MR. THIEL: Silicon Valley has been extremely successful over the last decadeor so. But it’s been a success that is a success of specific companies. You know, anumber of which I've been involved in. And the story people in Silicon Valley always
want to tell is one in which their specific success as individuals and as companies getsconflated with the story of general success and general progress in the United States. So
we're doing well; therefore, our whole civilization is doing well, everybody’s doing well.
The whole country's taken to the next level. And so that's the narrative people love to tell,specific success linked to general success.

7And I think the truth has been more one of specific success but more general
failure. And I've been a critic of Twitter, for example, where on my-- on our website
we've said, you know, they promised us flying cars and all we got was 140 characters.
But, you know, it's not a critique of Twitter as a company. It's a perfectly good company.
The people who work there have well-paying jobs. It's a perfectly great company, it’s justnot enough to improve living standards for 300 million-plus Americans.
MR. BURR: While we're on the topic, I want to get back to Trump for a second,
but how do you think that disconnect in some ways shapes the companies and the
products that are created there?
MR. THIEL: You know, this gets very speculative. But I would say that-- oneway I've often described the dichotomy is that Silicon Valley deals in the world of bits.
Most of the economy is the world of atoms. So the world of bits is computers, internet,
mobile internet software, that ensemble. And there's been a narrow cone of progressaround those kinds of industries.
But then you often have a less good of an understanding for the sort of industries
that involve-- in atoms that are involved in building things. Sort of real estate, which
Trump is in is sort of maybe the stereotypical industry involving atoms. Those are theones that are often much more heavily regulated than the world of bits. And so if you'rein the world of atoms, you might be very concerned about government regulation.
If you're in the world of bits, which is much less regulated, you might be muchless concerned about government regulation. So there is this big separation just in termsof what they do. I wouldn't blame that on just a blind spot Silicon Valley has. I thinkthat's a little bit too easy. Perhaps Silicon Valley has focused on the world of bits because
it's actually gotten very hard to do things in the world of atoms.
When I was an undergraduate at Stanford, you know, there were still a lot ofdifferent engineering fields you could study in the 1980s. They were all bad decisions. It
was a bad idea to become an aero astro engineer. It was a bad idea to become a chemicalengineer or mechanical engineer. These were all industries that were sort of in structural
decline because they were getting outlawed. They were getting regulated to death.
Nuclear engineering, I mean your parents would have-- it would have been irresponsible
to let you study that as a field in the 1980s.
You know, even electrical engineering, which was semiconductors, and that's sortof on the boundary between atoms and bits, that was a good field for about a decade. Not
so much anymore. Computer science, not even an engineering field, that was the only
sort of scientific technical field that actually had a future in the 1980s.
MR. BURR: Let’s go back to Mr. Trump; we’ll have more questions about
Silicon Valley in a minute. Was the timing of your donation in any way related, donation
to the Trump campaign, in any way related to the revelation of the “Access Hollywood”
tape about Mr. Trump?
8MR. THIEL: No. I mean, I think the tape was-- I think the tape was anextremely-- in extremely poor taste, extremely inappropriate, as I said. I didn't, youknow, I didn't think as much even about the donation as I should have. My generalperspective on this year was that money actually didn't matter that much. The candidates
who raised the most money on the presidential level did incredibly badly. I didn't eventhink that Trump needed my money. You know, he hadn't raised that much money, they
hadn't asked me for money, I hadn't donated. And so when they asked me, you know, I
wasn't sure they needed it, but I thought I'd go ahead and write them a check. But I didn't
think that much of this connection.
And, of course, I didn't think anybody would think that you would donate to a
candidate because of the worst thing they've done. You support candidates normallybecause of the things you like about them, not the things you dislike. And it’s odd-- like, I
think almost all the people who are voting for Trump are voting because of the sense that
the U. S. is very badly off track and perhaps we have to do some things to fix it.
MR. BURR: You mentioned in your speech that Mr. Trump is not necessarily
humble. But are you concerned about some of the personality traits, the comments about
women, his more bombastic style? Are you concerned what that says to younger
Americans and says to our political discourse today?
MR. THIEL: Well, I think we've been pretty clear this year that there are a lot ofthings that are beyond the pale and I think there are things that Trump said a decade agothat even he would absolutely no longer say today. So, you know, I think that part of our
discourse is getting policed adequately and will continue to be policed adequately.
I think that temperament, you know, the kind of place where I worry about thatmost on a policy level is do we get into more wars or not. And I'm not sure whether that's
sort of a matter of temperament or more a matter of world view. But certainly I would
worry much more on that with Hillary getting us into wars. The nuclear one, which is themost dangerous probably involves still a confrontation with Russia. And I don't think,
you know, I don't think Hillary Clinton has accused Trump of being overly hostile to
Putin.
MR. BURR: But are you concerned about Mr. Trump's temperament when it
comes to the nuclear codes at all?
MR. THIEL: Well, I don't think that-- I think he wouldn't even get us into asituation where it would even be close with respect to Russia. So I think if you actually
look at the specifics, where might something happen, where might something go wrong, I
would think that in some ways Hillary's much more dangerous than Trump. I don't think
Hillary will get us in nuclear war, either, but it's a much more confrontational foreign
policy.

9MR. BURR: What about Mr. Trump's temperament with other countries; North
Korea, China, that could pose some trouble if he were elected president because of how
he responds?
MR. THIEL: Well, North Korea has been a problem for a long time. I think at
this point, it’s actually more a problem for China than for the U. S. It's a pure client stateof China. You know, I don't like the way China’s managing it, I'd like them to dosomething to change things around rather than tolerate the horrible dictatorship that exists
there. But I think China will keep it a very bad, very unhappy but a very low volatility
situation.
MR. BURR: Let's go back to domestic politics. As an entrepreneur yourself,
where do you place Donald Trump's economic plan against Hillary Clinton's plan? What
key factors in this plan do you think will nurture small business ascension versus
Secretary Clinton?
MR. THIEL: Well, I think it is-- first off, it is just this general way in which it isrejecting the sort of bubble thinking. And I think what we have to acknowledge is that the
bubbles we've had in this country since the 1990s have on net been catastrophic. You
know, the tech bubble that I experienced first hand in the late ‘90s in Silicon Valley was
extremely exciting. It seemed to accelerate things tremendously. But then, you know,
after it crashed, B2C meant back to consulting, B2B meant back to banking. And I think
the whole thing ended up leading to an enormous misallocation of capital; even worse, anenormous misallocation of talent. People went into new industries, they lost their jobs.
Their careers went sideways for many years.
And so I think that the sort of bubble history has been very catastrophic and that's
sort of an honest assessment of our economy and what to do, would start with talking
about that. Temperamentally, I think that Trump understands, he viscerally understands,
the ways in which government regulations are-- you know, they're not that bad for big
business, because big business often has the resources to deal with them. Sometimes, big
business even likes regulation because it knocks out the small businesses that might
compete.
But it's catastrophic for small businesses. And there's been much less formation ofsmall businesses in the last decade or so in the U. S. relative to historical baseline. You
can debate why this happens, why questions are always hard to answer. But my instinct isthat it does have something to do with the toughness of the regulatory climate in thiscountry.
MR. BURR: Mr. Trump bills himself as a big, good businessman. Yet, there's
been a lot of stories recently about the bankruptcies he’s had in his companies, the fact hewon't release his taxes to say how much he’s actually contributed to charities. Do thoseraise any concerns in your mind?

10MR. THIEL: Well, you know, I think he’s been a successful businessman. I
think he’s been a very successful real estate developer. There's no question about that.
We can debate how many zeros exactly he has in his net worth, but he has-- you know, he
has a lot, so-- he has a huge number, even. I think that-- real estate is an industry that's
very different from tech and so it’s not one I would consider myself that expert at
evaluating the specifics of what someone has done. I think it’s a fairly zero sum business,
it's a very tough industry especially in our big urban cities like Manhattan or San
Francisco.
And I suspect that in many ways, you know, what Trump did was par for thecourse in that context. You know, we have an enormous amount of transparency on ourpolitical leaders, I think that's a good thing. On the whole, there's always a question of-there's a point where it gets pushed too far. I would worry that we ask so much-- weexamine people under an electron microscope if you're running for dog catcher in thiscountry. And at some point, I would-- I do think that this is the single biggest reason that
more talented people do not run for political office and do not get involved.
You know, there's the transparency in some ways, is-- often gets taken in this very
toxic direction. So I don't know whether or not Trump should release his tax returns, but I
think at this point the American people know far more than enough to make up theirminds about the two candidates.
MR. BURR: You do believe, though, that the vetting process for our American
political candidates should be strong and thorough?
MR. THIEL: Oh, it should be very strong, and it is very strong. But I also
believe that there are a large number of-- that we have, in some ways, have a less talented
group of people running today versus 40 or 50 years ago. I think the vetting process wasvery tough, you know, when Kennedy was running for president in 1960. But it’s notclear somebody like Kennedy would be electable in today’s world.
MR. BURR: Has Mr. Trump given you any private assurances he wouldn’t rollback progress on LGBT rights or his appointments to the Supreme Court wouldn't undo
the rulings for same sex marriage nationwide?
MR. THIEL: You know, I've not had conversations with Mr. Trump on thatspecific subject. I do think that he represents a sea change from the Republican Party ofBush 43. You just think about the way Bush 43 was speaking negatively about gay
marriage at every single campaign event in the 2004 election. It’s something where
Trump has-- everything he’s indicated is that he would be quite expansive on gay rights.
MR. BURR: Lastly, and I'll move on to another topic, but do you personally
support Mr. Trump's comments and rhetoric before about banning Muslims fromtraveling to the United States?

11MR. THIEL: You know, I don't support a religious test. I wouldn't use-- you
know, I certainly don't support, you know, the specific language Trump has used in every
instance. But I think one thing that should be made distinguished here is the media
always is taking Trump literally. It never takes him seriously, but it always takes him
literally. I think a lot of the voters who vote for Trump take Trump seriously, but not
literally.
And so when they hear things like the Muslim comment or the wall comment orthings like that, it’s not-- the question is not are you going to build a wall like the Great
Wall of China or, you know, how exactly are you going to force these tests. What they
hear is we're going to have-- we're going to have a saner, more sensible immigration
policy. We're going to try to figure out a way to-- figure out how do we strike the rightbalance between costs and benefits.
And, you know, immigration, it's not an all or nothing. It's not that you should let
everybody in, it’s not that you should let nobody in. Those are two very different
positions. They're exclusive, but they're not exhaustive. There's a lot of room in between
and the question, the policy question is how to tackle that. And I do think there's
something-- you know, we live in a-- there's an immigration bubble where we say, youknow, it's all good. You shouldn’t ask questions. And I think we could have a better
policy. I personally would like one like Canada or Australia. I think those countries havemuch better policies than our country and we could become a more normal country, learn
from places that are doing it better than we are.
MR. BURR: Switching subjects, you're sitting here at the National Press Club
surrounded by journalists. Do you believe you've set a dangerous precedent in secretly
suing Gawker in connection with its publication of the Hulk Hogan video? And are you
engaged in any other lawsuits? But let’s start with that precedent. Is that a dangerous
precedent to set?
MR. THIEL: I don't think so. You know, let’s start with the facts of the case. It
involved a sex tape. If you make a sex tape of someone with their permission, you are apornographer. If you make a sex tape without their permission, we were told now, youare a journalist. I would submit that is an insult to all journalists. This is not about thefirst amendment, it is about the most egregious violation of privacy imaginable.
Publishing a sex tape surreptitiously filmed in the privacy of someone’s bedroom and tohide behind the first amendment, behind journalism, that is an insult to journalists.
And that's why, that's why Gawker lost so catastrophically at the court in Tampa,
Florida, because they were arguing all these sort of abstract theories and we kept focusing
on the facts of the case. There was a deposition of A. J. Daulerio, the editor, whopublished the sex tape. In the deposition we asked him, “So is there a sex tape you
wouldn't publish?” “Well, maybe if it involved a child.” Then we asked, you know,“What age child?” He said, “Well, if it was a four year old child.” There were sort ofgasps by the jury at that point.

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So maybe it was-- you know, it’s sort of was like he’s an aspiring childpornographer. And that's not what journalism’s about. So, I strongly believe in the firstamendment. I believe, you know, journalists are a privileged group in our society. They
play an important role in getting us information and our system of checks and balances.
But, these were not-- these were not journalists.
MR. BURR: Do you think what happened to Gawker could happen to othernews publications? I mean, could wealthy, powerful people seek revenge against a news
organization because of something they didn't like and use their influence and money totake them out?
MR. THIEL: You know, they shouldn’t-- wealthy people shouldn't do that. I
think if they try, they won't succeed. You know, it’s-- Gawker was-- it was a pretty
flimsy business. It was a bad business. It didn't make that much money. But they could
have withstood all of the lawsuits. You know, they lost because of an enormous verdictthat came in against them. That's why they lost at the end of the day. I could haveunderwritten many more lawsuits. That wasn't the problem. The problem was that theylost on the facts.
You know, I thought that it-- I was very careful in the Hulk Hogan litigation inpicking a lawsuit where the fight was over privacy. We did not even bring a libel action
because that was sort of the way I wanted to make clear in the Hogan case that it was notabout the media, it was not about the media more generally.
MR. BURR: Are you engaged in any other lawsuits against news organizations?
MR. THIEL: I've been involved in the Gawker case, nothing else. And part of,you know, part of my thought was, again, they we're a singularly-- they were a singularlysociopathic bully. My view is that other journalists, other media organizations, were notremotely in the same ball park.
MR. BURR: Tell us how you got involved, and especially how and when you
got connected to Charles Harder, Hulk Hogan’s lawyer in the Gawker case, and why you
did this secretly?
MR. THIEL: Well, you know, it was a multi-year-- I have to be little bit careful
on what I comment on this since the litigation is still ongoing. But I got involved over anumber of years. And it was one of these things where as you got involved, you came tobelieve in the justice of the case more and more because there were so many different
people that you interacted with who had been destroyed. In many cases, in most cases, it
was not super prominent people, it was-- or super wealthy people. It was people who
couldn’t afford to do anything.
And one of the striking things is that if you're middle class, if you're upper middle
class, if you're single digit millionaire like Hulk Hogan, you have no effective access to13

our legal system, it costs too much. And this was the modus operandi of Gawker in large
part. It was to go after people who had no chance of fighting back.
You know, we can debate about whether the more appropriate thing for me would
have been to be transparent about funding it all the way through. But, my judgment wasthat Mr. Hogan deserved to have his day in court and that that would have distracted fromhis day in court. You know, he-- that transparency and that would have turned it into thisvery different narrative, into the Gawker narrative, that it’s the billionaire trying tosquash the first amendment rather than what I think it was actually about, which was anegregious violation of privacy, the publication of a sex tape.
And one other perspective on this is that I've been involved with the internet for
the last 20 years. I'm generally in favor of the internet. I generally think it’s been a goodthing. But I think there are some parts of it where things have gone wrong and one kindof phenomenon that's very new that can take place on the internet is this sort oftransparency anonymity combined. We have this sort of-- these mobs, flash mobs that get
directed at specific individuals. That's a very new phenomenon, and Gawker in someways perfected it where you'd pick on people and you would destroy their lives and you'dwrite nasty stories. The writers might then even add comments that were even morevicious than the ones in the story, all so as to generate a virtual mob that would go after
these people.
There were many different targets they had. They had targets in Silicon Valley,
they had celebrities as targets. But one big class of targets that Gawker went after werepeople in the media. You know, sort of one class of people they especially hated wereother reporters, other writers. And in the sort of pre-history, as I was-- as we werebuilding up this case, a few people I talked to about it, and some of the people who
encouraged me to keep going were some of my friends in the media because they knew
how much Gawker had actually specifically targeted more successful writers andreporters over the years.
MR. BURR: You've had a feud with Gawker for more than a decade, as I said in
my introduction. When did you decide that funding another person’s lawsuit would be thebest course of action to take down Gawker, and when did you set this in motion?
MR. THIEL: You know, it would have been roughly co-equal with the time theHarder firm started to work with Hogan, so over four or five years ago. You know, myinitial view was that what you were supposed to do was you were supposed to take yourbeatings, crouch down, go into a fetal position and then hope they moved on to somebody
else. And sort of around 2011, one of my friends convinced me that if Gawker could getaway with this sort of sociopathic repeat behavior over and over, it was this tragedy ofthe commons. Nobody would ever-- you know, they would continue to ruin lives one
after another.
And there were many people they did things to far worse than me. And so, I wasconvinced that if I didn't do something, nobody would.
14MR. BURR: The candidate you're supporting for president, Mr. Trump, has
spoken several times about changing libel laws in this country so that he can sue news
outlets essentially for stories that he doesn't like. We have laws in place right now toprotect public figures, as well as ordinary citizens. Where do you draw the line?
MR. THIEL: Well, I don't think the libel laws need to be changed. I think that
there certainly are questions about how we-- are there some new facts and circumstancesthat are a little different, so I think it's always good to ask questions. If you're the child ofa celebrity, do you get subjected to the same amount of scrutiny as celebrity? Even if
you're a public figure, can your sex tape be made public? Don't think so. If you're a tech
CEO of a startup with 12 people, should you be subject to the same level of scrutiny as apresidential candidate or other public figure? So I always think there are some cornercases like this that we should explore. I think there are ways that the internet has changed
these boundaries some. And so I do think we need to reexamine some of these cornercases.
But I think on the core principle of something like New York Times v. Sullivan,
that obviously should stand and that's been a good thing. I don't think that needs tochange, or should change.
MR. BURR: Speaking of Charles Harder’s now developed a reputation as the
go-to lawyer for the rich and powerful when they want to threaten media outlets. He now
represents Roger Ailes against the New York magazine, Melania Trump against the Daily
Mail, and other clients. As a Libertarian, do you feel this is a threat to freedom of thepress in any way? How would you characterize what he does?
MR. THIEL: You know, I'm not going to speak to all the-- you know, I'm notfamiliar with all the details of all the litigation. I'm not underwriting any of thoselawsuits, just to be very clear. I do think what actually matters in litigation is what
happens at the end game. Sort of like the-- it’s like the-- if you want to understandlitigation, it's like the Capablanca line in chess. You must begin by studying the end
game. You must begin by thinking about do you actually ultimately win or lose?
And if you bring a harassing lawsuit and you lose, that also sets a precedent, andthat's a precedent for greater press freedom over time. And so I think that when one
brings litigation, you have to think all the way through to the end game. And I wouldn't
do it because, number one, I think the first amendment should be respected. But number
two, many of these sorts of cases I wouldn't bring because I think you ultimately won't
win. It's very different from Gawker where we could map out with a high level ofcertitude that if we had our day at court, we would win.
MR. BURR: Well, since you came to the lion’s den of National Press Club insome ways, let me ask you about your concerns about the media today. What do you
think are the problems with the media, the news media? And what do you think thatmeans for society and what would you do to fix them?
15MR. THIEL: Well, identifying the problems and how to fix them are two very
difficult, different kinds of questions. You know, I always am fixated on economic
questions and the economic challenge that's very severe is that a lot of the businessmodels that media companies have are not working as well as they used to. I don't exactly
know what you need to do to fix that. But I think the way I tell the history of media,
newspapers, magazines, a lot of print media, was that these were incredibly robust
monopoly businesses in the 1980s and 1990s. And if you worked at a newspaper, it’s likeyou were working at a utility company. You had this cushy, fairly sinecured position
because you were a local monopoly. And the internet inadvertently sort of eroded thesebusiness models.
You actually have more power, you know. The stories you write reach more
people, so the media is, in some ways, more powerful than ever. But it’s economicallynot doing as well. And I think that is a big challenge. I think the monopolies that media
enjoyed were in some ways a good thing because even though we don't want monopolies
in many cases, they did provide a positive externality for our society. The monopolies
were good. Monopolies have been eroded and that's sort of the core challenge.
It’s not the self understanding people have. You know, you normally don't like to
say I'm working at a monopoly company and that's why we're doing so well. But I thinkthat's the history of what happened and what needs to be understood better.
MR. BURR: Sticking with the Gawker situation for a second, on the opposite
side, since you say you're a believer in freedom of the press and good journalism, do you
think it’s the responsibility of folks like yourselves who have the resources and the ability
to help fund good journalism out there and would you do so?
MR. THIEL: You know, I wouldn't want to compete with Jeff Bezos ever. You
know, so he’s the-- I think he’s the toughest person in the world to compete with at thispoint, so just to be very clear, I have no plans to buy the Washington Times. But I think
that-- I think sort of getting-- I think, you know, I think it’s possible that that's a directionthat media will change in where it becomes almost a sort of nonprofit undertaking. I'm
not sure that's the healthiest way for the media industry to develop because I think a lot of
nonprofit organizations are not that effective. They're sort of weirdly distorted. They dogood, but it’s actually-- they're often not managed all that well.
And so perhaps it moves in that direction. But I'm not sure that's the solution to
the problem.
MR. BURR: Switching subjects a little bit, as a Libertarian, what do you think
are the greatest threats to your freedom today and what do you think can help increase
people's individual freedoms?
MR. THIEL: Well, I think it is-- you know, the sort of-- look, the ideological
Libertarian answer to that is always the government and then probably from a civil
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Libertarian perspective it’s government fighting too many wars. It's government
incarcerating too many people in our society. It's government regulating the economy toomuch. And then I would like to see-- so I'd like to see less involvement by the U. S. in-as a global-- less of the U. S. as a global policeman. I would like to see fewer people injail in the U. S. It’s another place where the U. S. is an exceptionally crazy country where
we have incarceration rate that's completely out of synch with the rest of the developed
world. And I'd like to see if we had an incarceration rate like Western Europe or Canadaor Australia, that would be a sane direction for us to go in.
And then the regulation of businesses. So I think, you know, I don't think-- I think
there are parts of Libertarianism that always sound fringe. I think the issues I would want
to focus on are ones where the U. S. actually just becomes like other developed countries.
MR. BURR: Going back to your Republican National Convention speech, yousaid, “Our nuclear bases still use floppy disks. Our newest fighter jets can't even fly in therain. And it would be kind to say the government software works poorly because so muchof the time it doesn't work at all.” If you're talking about less government and more
Libertarian things, how does America fix that stuff still?
MR. THIEL: Well, this is where I think my ideal would be a smaller
government that does more with less. You know, not-- the ideological debates we have in
Washington, D. C. are always more with more versus less with less. It’s sort of runaway
spending with no controls or austerity where, you know, you're 300 pounds and you willchop off your thumb as a weight control measure. So that's sort of the weird-- that's theweird public policy debate we have.
And what the technology industry is about, what-- is always doing more with less.
And I think that would be a healthy perspective for us to have in D.C. So the question is
can we have-- whatever we spend on the military, can we achieve the same for less? So if
you have an F35 fighter jet that doesn't fly in the rain, maybe you could have-- is there
such a thing as a less expensive jet that can fly in the rain? I suspect there is and so-- andthis is where I differ from Libertarians because they might be excited about the F35 jet
and say, “Good, we can just shut down the whole government.” And I think we shouldtake as a challenge to make it work better.
If you can never do better than the F35, that's a super Libertarian perspective,
because then you just have to shut everything down. If everything is as bad as the F35,
you should just shut down everything in this town, have everyone go home. And what I
always point out to in these things, though, is there's been a decline. You know,
Libertarianism would not have sold as well in the ‘40s or ‘50s or ‘60s in the U. S. If you
were a Libertarian, that was-- it's fringe today, it was super fringe in the ‘50s and ‘60s
because that was a society where the premise is the government couldn’t do anything,
didn't make sense.
The Libertarian Party got started in the 1970s in the U. S. That's when it took off,
and the 1970s is the decade where things really stopped working in this country and17especially on the governmental side. And so I think there's this deep link between
libertarianism and the decline of our governmental institutions.
MR. BURR: Before I ask the final question, a quick reminder. The National
Press Club is the world's leading professional organization for journalists and we fight fora free press worldwide. For more information about the Club, please visit our website at
Press.org. That's Press.org. Also quick reminder about some upcoming programs. On
November 21, Gina McCarthy, the Administrator of the Environmental Protection
Agency will speak here. November 30, Paul Wiedenfeld, the general manager of the
Washington Metropolitan Transit Authority will be here. And on December 2nd, we’ll
host MGM Resorts Chairman and CEO, James Murren.
I'd like to ask again the audience to remain seated until our guest has departed. I'dalso like to present our guest with the traditional National Press Club mug.
MR. THIEL: Thank you very much. (Applause)
MR. BURR: So my final question, sir, what's your future in politics? After thisrace is over, how do you decide which candidates or, perhaps, political parties you'regoing to support?
MR. THIEL: Well, you know, I think my future is going to continue to be in thetech industry. That's what I am good at, that's what I enjoy doing. I always have this viewof-- a somewhat schizophrenic view of politics where I think it’s a horrible business, it’sincredibly destructive. A lot of it is like trench warfare on the western front where there's
crazy amounts of carnage and nothing ever changes. And then that's one part of myschizophrenic view.
The other part is that it’s really important. There's some problems that can't besolved outside of this political arena. And the way I deal with my schizophrenia is that I
occasionally get involved, but don't want to make it a full time thing.
MR. BURR: Thank you for being here, Mr. Thiel, appreciate it.
MR. THIEL: Awesome, thank you very much.
MR. BURR: Thank you. (Applause)
END

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