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Decoding Muskism: Beyond the Billionaire

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Decoding Muskism: Beyond the Billionaire

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86 segments

0:00

What is Muskism, and how important is it to all of us in the way in

0:03

which we we lead our lives today?

0:05

So we define Muskism as the promise of sovereignty through technology. And the case we make

0:11

throughout our book is that Musk is not so much in the business of selling cars,

0:15

rockets, or satellites so much as he sells the idea that in an increasingly unstable world,

0:22

both individuals and nation states can fortify their self reliance and resilience by plugging into his

0:28

infrastructures. But, of course, in doing so, they become even more dependent on his infrastructures. And

0:35

you can really see this as a through line throughout his career. Take the example of

0:38

SpaceX, which gets its start in the early years of the war on terror as a

0:43

key government contractor helping Donald Rumsfeld's Pentagon put satellites into space. Now twenty years later, Starlink

0:50

is the main revenue model for SpaceX. And when you look at Starlink's major use cases,

0:56

it's military, it's also first responders, public safety who need to be operating in remote environments

1:04

and also in times of conventional grid failure. So we really see this as a through

1:09

line throughout Musk's career.

1:12

When you guys also compare Musk to Fordism, Henry Ford assembly line techniques, standardization absolutely changed

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manufacturing and ushered in the system of mass production that that still kind of defines, American

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capitalism and especially defined the twentieth century capitalism. When you compare that to Elon Musk, where

1:32

are they similar? Where are they separate? And is Elon Musk the Henry Ford of the

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twenty first century?

1:39

Yeah. Thanks for having us. Fordism is a term that was coined about exactly one hundred

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years ago, and people were not just talking about the factory, but they're talking about the

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world outside the factory. Right? So it was a world of mass production plus mass consumption

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in which doing things on the assembly line was also about the nuclear family. It was

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about intergenerational upward mobility. It was about collective bargaining agreements. So there's a kind of social

2:03

contract inside of Fordism that was very interesting to us because we wanted to ask, if

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you look at Musk, what's his social contract? Right? We know that he has his group

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of reply guys who can even monetize their feed. We know he has investors who are

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very interested in his businesses. But how do you scale that? Is it possible to build

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something as stable as the twentieth century model, in which there was a kind of a

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virtuous cycle of workers being able to afford the products when, as Musk is doing, you're

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kind of promising to make a lot of those workers obsolete. And you seem to have

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a very selective idea of who gets to be in the social contract and who gets

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to be out. So the way that Fordism has been described as a kind of philosophy

2:46

of social peace, we think of one of the strange things about Musk is he seems

2:51

to be preaching a kind of ideology of social war. He almost seems to be drumming

2:55

up kind of antagonisms and frictions as a way to better sell those insulating technologies to

3:01

make you safe inside of your Tesla or SpaceX dome, you know, when the social unrest

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begins, when climate breakdown begins. So it's a very tenuous kind of social contract we see.

3:11

And in the last chapter of the book, we talk about Doge and state acts as

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a kind of way to, test the theory. Like, can Musk become a real techno king

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as he has officially described at Tesla? Or do normal politicians like Trump actually still have

3:29

an important role to play in the model? How far can Silicon Valley govern directly?

3:35

Quinn, let me stay with that because I think there's been a lot of fascination about

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Elon Musk's engagement with politics, and you write about state symbiosis in in the book. That

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is we have Elon Musk presenting himself as a real, libertarian, doing things outside the realm

3:48

of of government, and yet we've seen him obviously cozy up to to this president. I

3:52

don't know what the state of the relationship is, what their state of the relationship is

3:55

today, but but drill in on that if you could, the the way that he sees

3:59

his companies, his empire interfacing with with government.

4:04

Yeah. I mean, there's anything we were trying to do with the book was to really

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change the conversation specifically around this. So we really think that the notion that Musk or

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really anyone in Silicon Valley in the leadership class is a libertarian is really kind of

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a misleading, almost a red herring. Certainly, someone like Peter Thiel had his moment when he

4:22

preached that kind of ideology, but Musk actually never did. What's actually fascinating about following Musk's

4:28

career from the nineties when he starts a company called Zip two, few people remember, which

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relies on what? The new government developed service of GPS that was military technology, and he

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taps into that and makes that a commercial facing product. SpaceX, Tesla, Department of Energy loans,

4:48

zero mission vehicle credits. He's always actually been happy and open about using the backstop of

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the state, thinking about the government as a primary client. And in this era of generative

5:00

AI becoming really the investment story and the growth story for the tech sector, you can't

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live without the government. Right? You need a friendly state. You need someone who's gonna open

5:11

up federal land for data center construction, who's gonna clear the path in regulatory terms for

5:17

you to get your way. So in fact, we don't see a contradiction when Musk enters

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government. We see it as a kind of a test of how far the state symbiotic

5:25

relationship can go without becoming a parasitic one. So Musk works when he works because he

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actually increases the capacity of states to do things. When it tips over into parasitism, then

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it becomes a kind of obstructing crony style capitalism, and, it stops working for both partners

5:43

as we've seen indeed many times in the Musk Trump relationship.

5:48

Ben, we've only got a little over a minute left, but I also wanna ask you

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about the cults of the Musk personality and the whole ethos around him and how that's

5:56

folded in with political climate and how that's impacted everything we've just talked about. Can Elon

6:01

Musk, the businessman, exist without the other half of that? Do they feed each other, or

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do they conflict with each other?

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Well, one way to think about this question is Musk's relationship to science fiction. I think

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a lot of commentators, observers of Musk have noticed that he often cite science fiction as

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a major influence. We actually see Musk as a science fiction author or narrator of a

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sort because from the beginning, from the nineteen nineties when he makes his first fortune as

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a dot com entrepreneur, he's very good at securing investor confidence by telling stories about the

6:33

future. And these future future stories are on the one hand fantastical, but on the other

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hand have a kernel of plausibility such that investors are willing to help give him the

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money to go build that future. We actually describe this dynamic as financial fabulism. And over

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the years, he finds new venues, new forums for this financial fabulism. Social media arguably supercharges

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it, where he can speak to not just, you know, institutional investors, but he can move

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markets with memes. He can post about Dogecoin, the cryptocurrency, and the price of Dogecoin goes

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up. He can post about Tesla, the price of Tesla goes up. So that has become

7:15

so integral to his business that it's infrastructure, essentially.

Interactive Summary

The video discusses the concept of 'Muskism,' defined as the promise of sovereignty through technology, where Elon Musk sells infrastructure as a means of personal and state resilience in an unstable world. The authors compare Musk to the historical model of Fordism, noting a shift from a social contract of stability to one of 'social war' and antagonism. Furthermore, the discussion explores Musk’s symbiotic relationship with the state—moving beyond the myth of libertarianism—and highlights his use of 'financial fabulism' to shape investor narratives and markets through storytelling.

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