top of page
  • Writer's pictureThe San Juan Daily Star

The paranoid style in American plutocrats

By Paul Krugman

Recently Dr. Peter Hotez, a leading vaccine scientist and a frequent target of anti-vaxxer harassment, expressed some puzzlement in a post on X, formerly known as Twitter. He noted that many of those taunting him were also “big time into bitcoin or cryptocurrency” and declared that “I can’t quite connect the dots on that one.”

OK, I can help with that. Also, welcome to my world.

If you regularly follow debates about public policy, especially those involving wealthy tech bros, it’s obvious that there’s a strong correlation among the three Cs: climate denial, COVID-19 vaccine denial and cryptocurrency cultism.

I’ve written about some of these things before, in the context of Silicon Valley’s enthusiasm for Robert F. Kennedy Jr. But in the light of Hotez’s puzzlement — and also the rise of Vivek Ramaswamy, another crank, who won’t get the GOP nomination but could conceivably become Donald Trump’s running mate — I want to say more about what these various forms of crankdom have in common and why they appeal to so many wealthy men.

The link between climate and vaccine denial is clear. In both cases, you have a scientific consensus based on models and statistical analysis. But the evidence supporting that consensus isn’t staring people in the face every day. You say the planet is warming? Hah! It snowed this morning! You say that vaccination protects against COVID? Well, I know unvaccinated people who are doing fine, and I’ve heard (misleading) stories about people who had cardiac arrests after their shots.

To value the scientific consensus, in other words, you have to have some respect for the whole enterprise of research and understand how scientists reach the conclusions they do. This doesn’t mean that the experts are always right and never change their minds. They aren’t, and they do. For example, in the early stages of the COVID pandemic, top health officials opposed widespread masking, but they reversed course in the face of persuasive evidence, because that’s what serious scientists do.

You can understand how the person in the street might not get what scientific research is all about. But you might think that businesspeople, especially those who’ve made money in technology, would appreciate the value of research and technical expertise. And many do.

But there are forces working in the opposite direction. Success all too easily feeds the belief that you’re smarter than anyone else, so you can master any subject without working hard to understand the issues or consulting people who have; this kind of arrogance may be especially rife among tech types who got rich by defying conventional wisdom. The wealthy also tend to surround themselves with people who tell them how brilliant they are or with other wealthy people who join them in mutual affirmation of their superiority to mere technical drones — what the tech writer Anil Dash calls “V.C. QAnon.”

So, where does cryptocurrency come in? Underlying the whole crypto phenomenon is the belief by some tech types that they can invent a better monetary system than the one we currently have, all without talking to any monetary experts or learning any monetary history. Indeed, there’s a widespread belief that the generations-old system of fiat money issued by governments is a Ponzi scheme that will collapse into hyperinflation any day now. Hence, for example, Jack Dorsey’s 2021 declaration that “hyperinflation will change everything. It’s happening.”

Now, I’m quite willing to admit that monetary economics isn’t as solid a science as epidemiology or climatology. And yes, even noncrank economists argue about some big issues much more than their hard-science counterparts.

But economics nonetheless is, as John Maynard Keynes wrote, “a technical and difficult subject” — one on which you shouldn’t make pronouncements without studying quite a lot of theory and history — although “no one will believe it.” Certainly, people who think they understand climate better than climatologists and vaccines better than public health researchers are also likely to think they understand money better than economists and to believe in each case that experts telling them that the world doesn’t work the way they think it does are engaged in some kind of hoax or conspiracy.

Sure enough, much of the recent turmoil in the crypto industry has had economists wondering: Didn’t these people look into the theory and history of bank runs? And the answer, of course, is that they didn’t think they needed to.

True, there have always been wealthy cranks. Has it gotten any worse?

I think it has. Thanks to the tech boom, there are probably more wealthy cranks than there used to be, and they’re wealthier than ever, too. They also have a more receptive audience in the form of a Republican Party whose confidence in the scientific community has collapsed since the mid-2000s.

So, in answer to Hotez, the dots are indeed connected. Anti-vax agitation and crypto enthusiasm are both aspects of a broader rise of know-nothingism, one whose greatest strength lies in an intellectually inbred community of very wealthy men.

70 views0 comments


bottom of page