Peter Thiel says Trump loyalty tests produced ‘not very smart’ officials

Amid fears of a globalist “catastrophe,” billionaire Peter Thiel pointed to a tweak between Trump administrations that could ultimately usher in “the end of America.”

(Video Credit: MD Meets)

Following New York City’s election of Zohran Mamdani as mayor in 2025, the Democratic Socialists of America and candidates they support marked a banner year toward further radicalizing the left with prominent primary victories and showings.

Foreseeing an anti-establishment-driven electorate favoring the DSA over the traditional standard-bearing Republicans, the Palantir CEO faulted a lack of “competent people” in President Donald Trump’s second administration, where a “loyalty test” has been the priority.

Appearing on the “MD Meets” podcast with German journalist Mathias Döpfner, Thiel was asked, with a decade elapsed since his initial support of Trump, “How would you analyze his achievements? How would you analyze his failures? Where do you stand today with regard to the last two years, and the first term of the president?”

“My facile answer is, you should ask me in 10 years or so, and we’ll see in 10 years how it all works out,” the tech entrepreneur began before voicing his wish that the president had “appointed more competent people.”

“I think the two administrations kind of made opposite mistakes. You know, the first administration brought in all these people who couldn’t agree, and it was just all this internal fighting,” he contended. “The second administration, I think, had all these — they overcorrected for the mistake of the first term with all these loyalty tests. You got sort of, you know, an administration staffed by not very smart, but very loyal people. And so, there are all sorts of ways it can be criticized.”

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Downstream of that, Thiel looked at frustration with the GOP that has been stymied by lawfare, judicial activists, and obstructionist leftists, as he suggested anything short of clear success on the right could turn voters toward Democratic Socialists.

“I worry in the United States that the kind of exhaustion with the Republican establishment that happened with the Bush family that happened in 2016, we’re about to see with the sort of Clinton-Obama center-left establishment, and the last three elections, you know, 2016, Trump, the sort of anti-establishment person, won the Republican primary.”

Noting former Secretary of State Hillary Clinton “barely beat [Vermont Sen.] Bernie Sanders (I)” in the 2016 primary, he drew attention to the swing back to establishment in 2020 and 2024.

“I don’t know if they’ll be able to do it in ’28. And the Democratic Party is the more important party,” argued the billionaire. “That is the establishment party in the U.S. The Republican Party is always a little bit the anti-establishment one. So, if the Democratic Socialists take over the Democratic Party, that’s a much bigger deal. And that is like — I don’t know — the end of America.”

Reflecting on past remarks about positive disruption, Thiel was asked if he’d like to see a shakeup again, to which he responded, “I don’t want disruption of the Democratic Socialist variety. That seems catastrophic.”

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He went on to conclude that the establishment on the left “has failed” as badly as that of the right and “we are gonna get this disruption and there’s a risk that the U.S. will shift very far to the left. That’s the real disruption we’re gonna get.”

Thiel is not alone in speaking about the impact young, disenfranchised voters could have in upcoming elections, as Fox News host Will Cain cautioned the president’s friendly demeanor around Mamdani during a visit to Gotham last week.

“As the two get closer, it’s starting to look like so too are the ideologies that are represented,” he said before contending, “some young folks on the right are considering socialism as a shortcut to the American dream.”

Kevin Haggerty

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