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Mr Geek goes to Washington

2013-08-29 06:39:23

America s tech tycoons are seeking to hack politics

FROM their corporate campuses on the west coast, America s technology

entrepreneurs used to ignore faraway Washington, DC or mention the place only

to chastise it for holding back innovation with excessive regulation. They

have, at times, invested in the low politics of self-interested lobbying from

chipmakers campaigning for protection from Japanese rivals in the 1980s to

Twitter this month reportedly creating a political action committee to pursue

its interests on Capitol Hill. Yet unlike Wall Street, which has long mixed

that sort of lobbying with supplying leaders to some of the highest offices in

the land and feeding in policy advice, tech tycoons have remained largely aloof

from the broader affairs of the nation s capital.

Steve Jobs was a classic example of this disdain. When, late in his life, his

wife persuaded him to talk to Barack Obama, he icily told the president he was

headed for a one-term presidency because of his hostility to business. Later,

as Walter Isaacson recounts in his biography of Jobs, the Apple founder hosted

a dinner with Mr Obama and a handful of tech tycoons, after which he recalled

that The president is very smart, but he kept explaining to us reasons why

things can t get done. It infuriates me.

Now come the first signs that the frustration of tech titans with politics is

spurring them to action. One is that a tech tycoon from the other Washington

has bought the capital city s local newspaper. Although no one, perhaps not

even the founder of Amazon himself, is sure why Jeff Bezos paid $250m for the

Washington Post, he does not seem to have done so just to pursue his industry s

narrow interests: he has pledged to uphold the paper s tradition of fearless

journalism. Another big statement of political intent was the launch in April

of FWD.us, a campaign for immigration reform. Convened by Mark Zuckerberg, the

founder of Facebook, its supporters are a who s who of tech, including Reid

Hoffman, the founder of LinkedIn; Marissa Mayer, the boss of Yahoo; Eric

Schmidt, the chairman of Google; and the most successful techie of them all,

Bill Gates. Despite some early rows over tactics, the group has survived and is

spending heavily in the hope of pulling off an improbable victory.

The few tech bosses with open party-political affiliations span pretty much the

entire spectrum. Peter Thiel, a billionaire co-founder of PayPal and early

investor in Facebook, is an outspoken libertarian who supported Ron Paul s

presidential campaign. In contrast, Sheryl Sandberg, Facebook s chief operating

officer, is a longtime Democrat who once worked in the Clinton Treasury

Department; she is now being tipped, albeit as a long-shot, as the first techie

president in the White House. But what these people have in common is more

important than their differences. Most are likely to be socially liberal and

economically pro-market, even if they have differing ideas on the right size

for government. And, as people who have thrived on disruptive change, they are

more likely than many other industrial leaders to be focused on the future and

its challenges.

Some Silicon Valley-watchers are urging its tycoons to steer clear of politics,

for fear of attracting unwelcome regulatory attention. They repeat Milton

Friedman s warning to a group of tech leaders in 1999, that they would rue the

day when you called in the government to curb Microsoft. A bigger risk is that

Messrs Bezos, Zuckerberg et al merely follow the same well-worn path as

previous generations of successful business bosses, from maverick entrepreneur

to establishment power-broker, with a personal agenda that may or may not

coincide with the good of the country. As yet the tech tycoons have produced no

common manifesto for fixing Washington s many ills. But they share a pragmatic,

can-do mentality that the capital desperately needs more of. They are widely

admired for having made their fortunes through their creativity and hard work,

which means that when they back a policy to fix, say, America s crippling

health-care costs or its underperforming public schools, people will pay

attention.

Politics 2.0

FWD.us promises to be a force for creative disruption. It is bringing to

politics the hacker mentality of tech entrepreneurs move fast, try to find new

and innovative solutions to old problems, says Joe Green, who is running the

campaign. Controversially, this has included a deal with Republicans: support

immigration reform, which may be unpopular with your voters, and FWD.us will

pay for television ads in your constituency to remind them of your positions on

other issues, which they do like. This has been dismissed as the worst kind of

old-style Washington politics by some other tech leaders, including Elon Musk,

the green-minded founder of SpaceX and co-founder of PayPal and Tesla Motors.

He quit FWD.us when he heard his money was being used to buy advertisements

promoting Republican support for the proposed Keystone XL oil pipeline. The

debate rages on, but the immigration bill passed the Senate in June, and if it

passes the House later this year the hacker tycoons will feel vindicated.

FWD.us s backers seem to have learned from the failure of their earlier efforts

to lobby for a narrow immigration reform that would have simply let in more of

the skilled foreign workers their companies need. Now, by campaigning for a

larger reform that includes a path to citizenship for those working in America

without permission, they have been able to broaden their support base; and the

scent, albeit faint, of a possible victory is in the air.

If so, what next? Might the tech tycoons then apply this lesson to their future

political activism, and seek to push politics forwards in a range of areas that

need urgent attention, from education reform to trade liberalisation? It is too

early to be sure, but if their first taste of life at Washington s top tables

proves rewarding, the tech titans may not want to stop.