Certain individuals prioritize their personal gain over "America First," as an alternative philosophy.
Business Magnate Carsten Maschmeyer is Familiar with the US and Silicon Valley's Inner Workings. He's Connected to Nearly 50 American Startups. In a Conversation with ntv.de, He Explains Why Certain Founders and Investors Back Donald Trump, Despite Their Opposing Values.
ntv.de: You've recently returned from the USA, specifically Silicon Valley. How has the atmosphere shifted there heading towards the elections?
Carsten Maschmeyer: In the past, the Bay Area, encompassing San Francisco and Silicon Valley, was completely democratic. Many individuals there, including founders, their staff, and investors, flocked towards the Democrats. However, this somewhat changed. It started with Peter Thiel, a prominent German investor, openly supporting Trump a few years back. Then Elon Musk entered the scene, initially criticizing Trump. Now, even some wealthy investment fund holders are aligning with the Republicans, such as Marc Andreessen from the influential venture capital firm Andreessen Horowitz.**
What motivates these individuals to switch sides?
For many, it isn't an ideological decision. Andreessen admitted that he despises himself for it, but he believes that Trump's self-centered nature will result in tax benefits for capitalists, entrepreneurs, and investors. Andreessen prioritizes company, fund, and investor interests. Interestingly, his partner, Ben Horowitz, holds a different stance. He sees supporting Trump as incompatible with his values and donates generously to Kamala Harris.**
Are there differences between CEOs, investors, and employees?
There's no longer the same unity in the industry as there once was. However, it's clear that employees continue to show a higher frequency and greater donations to Harris than to Trump. Even within Elon Musk's companies, such as Tesla, SpaceX, and Twitter, now called X, employees donate more frequently to Harris.**
What factors are influencing founders and investors? What draws them to Trump, despite not having supported him before?
For investors and founders, the capital gains tax is a significant concern. It's currently effectively zero. If someone sells their company and reinvests the revenue, for instance, by purchasing real estate, they avoid paying taxes. Harris wishes to revise this, as well as increase corporate taxes from 21 to 28 percent. Meanwhile, Trump, who lowered this tax to 21 percent in his first term, seeks to lower it even further, to 15 percent. Additionally, Harris aims to enforce more AI data protection and regulation, while Trump does not.**
Previously, Silicon Valley founders claimed to improve the world through their startups. Now they're voting for tax reasons?
Yes, most Silicon Valley founders once had this claim. However, for a few – a minority – it has moved down the pecking order. For them, it's not "America First," but "My Company First," "My Profit First." They vote for Trump for tactical, financially optimizing reasons, even if it contradicts their political convictions.**
The American election campaign is highly polarizing. Do you feel this tension in the startups you are involved in? Are there conflicts there?
The more centered on technology and science founders and their employees are, the more rational they are on political topics. They are less influenced by emotional campaigning. Politics aren't heatedly debated in meetings. The majority, which remains democratically-leaning, is less afraid of Trump than they were eight years ago. Moreover, this polarization due to the two-party system results in most people living in homogeneous bubbles. The campaign focuses on a few critical swing states. Trump and his team have abandoned California. For instance, I've noticed few campaign posters.
Does this mean that societal divide isn't reflected in the companies you're involved in?
Not as strongly. The individuals in these startups are highly educated, progressive. They support abortion rights, for example, and an open immigration policy. Trump's supporters are primarily in the 'Old Economy', specifically among workers who feel neglected by politics – something I find puzzling. Trump presents himself as a hero for the little people and workers while his economic plan primarily benefits his entrepreneur and investor friends.**
Both sides often portray this election as a pivotal moment for the USA. What's at stake from the perspective of your business partners and employees in the USA?
Historical turning point? That was the case eight years ago when Trump was first elected. The community I'm familiar with in the USA, the investors, tech entrepreneurs, founders, they're not as nervous as they were then. The mood is different from 2016. They feel more relaxed because they've successfully navigated Trump for four years.**
Max Borowski interviewed Carsten Maschmeyer
Carsten Maschmeyer mentioned that the shift in the Bay Area towards the 2024 US presidential election has seen some prominent figures, like Elon Musk and Marc Andreessen, show support for Republicans, despite their conflicting values. This shift could potentially impact tax policies, such as the capital gains tax, which is a significant concern for many investors and founders.
With the 2024 US presidential election approaching, the proposed changes in tax policies, including the capital gains tax, could significantly impact investors and founders in Silicon Valley. Many individuals, including Carsten Maschmeyer and those he is connected to, are closely monitoring the election to determine how it may affect their financial interests.
