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:

Academic Article

The Role of Effects, Saliencies and Norms in U.S. Cyberwar Doctrine – with Charles Glaser

The US approach to cybersecurity implicitly rests on an effects-based logic. That is, it presumes that the key question determining how the US and others will respond to attacks is what effects they have. Whether the effects come about as a result of cyber means or kinetic means is largely irrelevant. In this article, we ...
Read Article
Essay

By Punishing Iran, Trump is Weakening America – with Abraham Newman

Last week, U.S. Secretary of State Mike Pompeo complained about Republicans in Congress who were grandstanding for harsher sanctions on Iran. Now, he has joined the grandstanders, announcing that the Trump administration is stepping up its maximum pressure campaign against Iran by ending waivers that had allowed some states to import Iranian crude oil. This ...
Read Article