PETER THIEL: The intellectual question that I ask at the start of my book is, “Tell me something that’s true that very few people agree with you on.” This is a terrific interview question. Even when people can read on the Internet that you’re going to ask this question to everybody you interview, they still find it really hard to answer. And it’s hard to answer not because people don’t have any ideas. Everyone has ideas. Everyone has things they believe to be true that other people won’t agree with you on. But they’re not things you want to say.
Towards the end:
AUDIENCE MEMBER:I’m going to take you on in your challenge about sharing something we know to be true that everyone disagrees with, and then ask you a question about it. The truth that I know to be the case is that the future of human evolution and how we think about how we structure society lies in privately funded, managed, for-profit cities built in partnership with, but independent from, governments today in the world.
My question to you, and then also I have a follow-up for Dr. Cowen, is “What do we need to do to enlist your powerful support in that view, in addition to getting introduced by someone in your inner circle?”
Dr. Cowen, my question to you is, “What do we need to do to be on that stage, having a similar conversation with you and the crowd that you have managed to get out here?”
PETER THIEL: I think there are many things that would be incredibly terrific to do. The business version would be “Is this important?” If we could reopen the frontier in geopolitical terms and find a way to really innovate on society, I think this would be a terrific thing to do.
Then the question “How does one actually do this?” is very tricky. All the surface area on this planet is occupied. It seems very hard to get this to work. I know Romer had this experiment with these city-states in Africa. I think it was prohibitively expensive. It could never really quite get started.
You need to have some version of where this would work and you could get started with a budget of let’s say less than $50 billion. If you could give me a convincing way it would work for $50 million instead of $50 billion, I’d be interested.
TYLER COWEN: Your question addressed to me. I have a graduate student and also a colleague who are working on the economics of private cities. Not private cities being completely separate from larger political units, but largely private cities with mostly private infrastructure nonetheless. If you’re talking about private cities truly independent of government, I would call those “cruise ships.”
[laughter]
TYLER COWEN: We do have many of them. I think they work fine, but I don’t view them as a significant blow for liberty. In fact, when I go on a cruise ship, I actually worry about some of the liberties I’m signing away. I know I do that voluntarily. It’s fine. I don’t object to that.
I tend to favor larger political units and to think that human freedom will be found by the wealth and diversity within larger political units giving people pockets. I’m not sure we’ll ever have a bottom-down creation of a lot of micro-units which compete very intensely and through exit give people true liberty.