[Reporter’s Notebook] Peter Thiel’s Email That Predicted the U.S. ‘Socialism’ Wave Five Years Ago

Crisis of Established Politics Driven by Inequality
Defeat Will Persist Without Solutions for Young People

International Desk Reporter Suyeon Oh.

An email written in 2020 by Peter Thiel, co-founder of PayPal and Palantir, has become a hot topic. Thiel predicted that the younger generation would turn away from capitalism, and this prediction has become reality with the election of Zohran Mamdani, a 34-year-old political newcomer and democratic socialist, as mayor of New York. Thiel’s insights are drawing renewed attention in light of this change that has occurred in New York, the heart of capitalism.

At the time, Thiel sent an email to Facebook (now Meta) executives, including Mark Zuckerberg, stating, "When 70% of Millennials say they support socialism, we should not simply dismiss them as foolish, entitled, or brainwashed. We must try to understand why." He pointed out that the social contract between generations had been broken, citing excessive student loan debt and housing costs as reasons why young people have turned away from capitalism.

As Thiel’s five-year-old email resurfaced following Mamdani’s election, Thiel gave an interview to Free Press earlier this month. He again stated that economic inequality between generations is turning young people into socialists. While the older generation in America lived by the formula "if you work hard, you will prosper," Thiel noted that this no longer holds true for their children, who face massive student debt and skyrocketing housing prices. The gap between parental expectations and the reality faced by their children has reached an all-time high. Nevertheless, the established political class has ignored this issue. Thiel said, "I dislike Mamdani’s socialism," but admitted, "It’s true that capitalism is not working for many people and young people in New York City."

Korean society is showing similar signs. Young men who have become far-right, young women passionate about feminism, and young people who have dropped out of the job market are simply dismissed as immature. The anger of young people frustrated by a society where the formula "if you work hard, you will prosper" no longer applies-due to issues such as employment difficulties and inequality-has not received proper attention.

Realistically, it may be difficult for a Korean version of Mamdani to emerge. It is also unlikely that Mamdani-style policies would provide solutions. Even in the United States, Mamdani’s "free transportation" pledge faced opposition from the governor of his own party just five days after his election. However, it is clear that Mamdani brought visibility to issues that the political establishment had previously overlooked and succeeded in rallying voters.

Attention should be paid to Thiel’s closing remarks in the interview: "If all you do is call Mamdani a jihadist, a communist, or a ridiculous young person, it just means you still have no idea how to solve the housing or student debt problems. If that’s the best you can do, you will continue to lose in the future."