Peter Thiel Warned Zuckerberg in 2020 Email: 70% of Millennials Lean Socialist Due to Debt, Housing

In a candid email exchange from January 2020, venture capitalist Peter Thiel cautioned Meta CEO Mark Zuckerberg and entrepreneur Marc Andreessen about a growing socialist sentiment among Millennials, primarily driven by excessive student debt and unaffordable housing. Thiel's prediction highlighted that a significant portion of the younger generation, lacking a stake in the capitalist system, could turn against it. The correspondence, which surfaced publicly, revealed internal discussions at Facebook (now Meta) regarding generational shifts.

The internal dialogue was initiated by Nick Clegg, then Facebook's VP of Global Affairs and Communications, who sought Thiel's insights on how the company could better engage with Millennials. Clegg cited a YouGov survey indicating that "70% of US Millennials said they'd vote for socialism," underscoring the urgency of understanding this demographic's evolving perspectives. Thiel's response delved into the economic realities facing younger Americans.

Thiel argued that the financial burdens of student loans and the prohibitive cost of housing lead to "negative capital for a long time" for many young people. He elaborated, "if one has no stake in the capitalist system, then one may well turn against it," providing a direct link between economic hardship and political ideology. This perspective suggested that the traditional path to wealth accumulation, such as homeownership, was increasingly out of reach for Millennials.

Mark Zuckerberg acknowledged Thiel's analysis, noting that he and Thiel had discussed "what we expect the world to look like in 2030." Zuckerberg expressed conviction that Facebook should "shift the center of gravity in our messaging to be more focused on millennials," and considered how the company could address issues like housing affordability and student debt. He suggested exploring programs for hiring individuals without college degrees to demonstrate alternative successful paths.

The exchange also touched upon a "broken generational compact" and the "iron grip" of Baby Boomers on various U.S. institutions, delaying generational transitions. Thiel emphasized that this delayed handover would make the eventual shift in power "more suddenly and perhaps more dramatically than people expect." The discussions underscored a strategic concern within one of the world's largest tech companies about adapting to the changing economic and political landscape shaped by younger generations.