Eric: it feels like almost universally, all of our institutions are now pathological
Peter: or sociopathic or whatever you want to call them yes. Yes I suppose there are sort of two ways one could imagine going, if you know you had these expectations of great growth – Great Expectations is the Charles Dickens novel from the 19th century – great expectations, and then you can try to be honest and say the expectations are dialed down or you can continue to say everything’s great and it just happens not to be working out for you, but it’s working out for people in general.
Peter: And somehow it’s been very hard to have the sort of honest reset and the incentives have been for the institutions to derange and to lie.
Peter: So you know there’s a problem there’s probably a way the universities could function if they did not grow, you know you’d be honest most people in PhD programs don’t become professors, maybe you’d make the PhD programs much shorter maybe, you’d maybe much more selective, you’d let fewer people in, there would be some way you could sort of adjust it and the institutions could still be much healthier than they are today, but that’s not the path that seemingly was taken.
Peter: And you know something like this could have been done in a law firm context, you still let the same percentage of people become partner but the partners don’t get don’t to make quite as much money as before, or something like that. So there would have been ways when one could have gone but those were generally not the choices that were made
— Eric Weinstein (Managing Director, Thiel Capital)
— Peter Thiel (Founder, Thiel Capital)
The clip is from ‘Peter Thiel on The Portal (with host Eric Weinstein), Ep. #1 – An Era of Stagnation & Universal Institutional Failure’ (Jul 19, 2019)