No Exit Opportunities: Business Models and Political Thought in Silicon Valley

It’s a rare buccaneer who runs a book club. But in October 2012, the chief administrator of the Silk Road drug market, under the pseudonym “Dread Pirate Roberts,” was on the dark web assigning readings from the anarchist libertarian philosophy of Murray Rothbard. Roth­bard had argued that markets and individual connections were really all we needed. As the Dread Pirate, whose real name was Ross Ulbricht, summarized it, a happier world awaited those who took the exit road from ordinary politics. They could escape the “thieving murderous mits [sic]” of the state to embrace the freedom that emerged from a “mul­titude of voluntary interactions between individuals.”

For Ulbricht, Silk Road wasn’t just a way to make money but the tech-fueled expression of a political philosophy. Cryptocurrencies like Bitcoin had (supposedly) enabled a new realm of voluntary exchange outside the grasp of government, allowing people to buy and sell drugs and guns without the feds interfering. Of course, state tyranny might reemerge if voluntary organizations like Silk Road started to steal from their users, or spied on, or even killed them. Ulbricht, however, believed that the forces of market competition would prevent this from happening, leading to “freedom and prosperity the likes of which the world has never known.”

Ambitious libertarian projects to escape the sordid compromises of politics have been part of Silicon Valley culture since the beginning. But Ulbricht’s dream of escape from politics and its vexations has become increasingly influential in the decade since the Dread Pirate Roberts book club. Several prominent Silicon Valley investors and entrepreneurs have become disenchanted with the U.S. government, East Coast media, and even their own employees (which have all increasingly become disenchanted with them).

Henry Farrell, “No Exit Opportunities: Business Models and Political Thought in Silicon Valley,” American Affairs, 8,3 (Fall 2024).

Access the full article here.

Other Writing:

Essay

Bitcoin is Losing the Midas Touch

Bitcoin, the decentralised, mainly digital currency that is neither issued nor guaranteed by central banks, has always seemed like a magic trick. Rather than spinning straw into gold it transforms wasted computing power into money that people will actually accept as payment. Radical libertarians have desperately wanted to believe in it because they hope it ...
Read Article
Essay

The Transatlantic Data War: Europe Fights Back against the NSA – with Abraham Newman

Last October, the European Court of Justice struck down the Safe Harbor agreement, a 15-year-old transatlantic arrangement that permitted U.S. companies to transfer data, such as people’s Google-search histories, outside the EU. In invalidating the agreement, the ECJ found that the blurry relationship between private-sector data collection and national security in the United States violates ...
Read Article