Tech titans embrace Trump: Influence and investment reshape US politics
According to The New Yorker, the advanced technology and cryptocurrency sector has become the "new lobbying colossus" in the US. With aspirations for deregulation and political leverage, the magnates of these industries have backed Donald Trump, as reported by American and British media outlets.
With substantial taxes and the political ambitions of the technology sector, Washington finds itself under increasing pressure. The high-tech industry accounts for about 10% of the US GDP and comprises one-third of the value of the S&P 500 index.
In other words, the workings of tech companies are no longer just Silicon Valley’s business; they’re America’s business - as highlighted by Fortune magazine.
Principal donors from Silicon Valley are backing Trump, and the influence of billionaires leveraging their wealth and media power for political positioning is rapidly growing, notes "The New York Times."
Entrepreneurs associated with cryptocurrencies are responsible for nearly half of the corporate donations that, via so-called super PACs, are fuelling the 2024 election campaign. The entire technology sector is becoming one of the pivotal political sponsors in the US. Their leaders wish to exercise as much influence in Washington and state congresses as they do on Wall Street, explains "The New Yorker."
A Super PAC is a political committee that does not donate funds directly to a candidate's campaign but invests in the campaign effort. One of the most significant committees in the technology sector is Fairshake, which disclosed in February that it raised $170 million for the 2024 elections.
Elon Musk supports Trump
Traditionally, Silicon Valley has been a stronghold of Democrats and liberals. Efforts by Congress and the administration to regulate the operations of giants like Meta, Google, or Apple, as well as regulations affecting technology and cryptocurrencies, have altered the stance of the regional leaders. "The Washington Post" highlights the specific case of Elon Musk, whose companies benefit from government contracts, yet personal ambitions shape his choices.
"The Financial Times" suggests that Musk's support for Trump is a deliberate business strategy. The British newspaper writes that Musk, the owner of Tesla, SpaceX, xAI, and X, aims to influence humanity's future.
During the campaign, leaders such as Google's Sundar Pichai and Meta's Mark Zuckerberg are maintaining a neutral position. Meanwhile, Musk, with his conspicuousness, draws significant media attention.
The Biden administration has commenced the oversight of technology firms' practices, particularly cryptocurrencies, following the dramatic collapse of FTX in 2022. "The New Yorker" explains that the SEC is concerned about the emergence of a new speculative bubble.
Trump promised a "bitcoin superpower"
The potential for stringent regulations has driven technological leaders to support Trump, who promises reduced regulation and lower taxes. The former president has succeeded in rallying them to his side by delivering speeches at bitcoin conferences and pledging to position the US as a "bitcoin superpower."
Democrats oppose excessive deregulation. Senator Elizabeth Warren compares the state of the banking sector before the financial crisis.
Bill Kristol, a renowned neoconservative, cautions on the Bulwark portal about "new oligarchs" influencing the Republican Party for their benefit. The role of Elon Musk, as the most prominent billionaire, becomes crucial due to his media clout, recalls "The Washington Post."
"FT" notes that tech giants hope the Trump administration will not challenge their monopolies or increase their taxes.
