How Silicon Valley Buys Influence In Washington | Nick Clegg Clip
Channel: Alex Kantrowitz
Published at: 2025-11-22
YouTube video id: FTl52Zk9HTY
Source: https://www.youtube.com/watch?v=FTl52Zk9HTY
There was a terrific story, actually a great leak of a memo from Brad Smith, the president of Microsoft. The Microsoft employees were asking him why Microsoft donates to packs and causes. And he gave what I think is like the most interesting and honest answer. Um, I'll just read a bit of it. He says, uh, about the money. I can tell you it plays an important role, not because the checks are big, but because the way the political process works. Politicians in the United States have events. They have weekend retreats. You have to write a check and then you get invited to participate. So if you work in the government affairs team in the United States, you spend your weekends going to these events, you spend your evenings going to these dinners and the reason you go is because the pack writes a check. Out of that ongoing effort, a relationship evolves and emerges and solidifies and can tell you as somebody who sometimes uh is picking up the phone basically to get people to answer. Yeah. Is that how it works? >> Yeah, I think it works. That's the way it works in the US. Yeah. Yeah. It doesn't absolutely doesn't work like that in the same way elsewhere. But the U US political system is so moneyed in a way that's I think almost without precedent anywhere in the democratic world certainly that I know about. Um and in a sense you know what's happened under Trump too is that that has just become that transactionalism has just become way more overt. You know >> you don't like the idea of bringing a gold bar to the person >> gold bars paying for a gold laminated ballroom all the rest of it. It it's kind of it's kind of like it's become all like almost like a sort of pastiche satire of a highly transactional um cash so money sorry um financially based um um um you know set of relationships which I think all the all the all the big corporates um are involved in and they do it openly they do it leg legally they do it lawfully there's nothing illicit going on um but in a culture where where elected politicians are literally non-stop fundraising and that's all they're doing. Um, uh, this has clearly become an established way exactly as Brad, uh, who I like and admire enormously. Um, as Brad, um, explained, it's not it's not you're not buying a decision. You're you're you're buying an entry ticket into an event which then get, you know, etc., etc., etc. >> Retreats fund. >> I have I I um I didn't go myself. there were much better placed folk uh in uh in my meta team who uh who had much better relationships. You know, I'm a non-American. My my role was I had oversight when I was at >> Meta for the the US operation, but was was was quite sort of globally focused. >> How do how do if we talked about in in the beginning of this conversation sort of the need for there to be a check on some of the companies within Silicon Valley if you know if they're pursuing this powerful technology? It doesn't seem to me like there can be if this is the way the system works. >> No, I mean it doesn't mean that the US political system is incapable of regulating or putting constraints on companies that uh who whose [clears throat] whose lobbying teams still make these contributions to go to the golfing weekend here or the dinner there and so on so forth. So I don't I don't I don't think the evidence is that the US political system is just rendered um you know completely inert um by this um you know by the way in which um corporate um contributions through packs and so on are are made. um it it just seems to be the way in which the relationships are are conducted and established in the in the first place and and the US body politic has regulated everything from the pensions industry to the banking industry to arms and oil even though all of those companies and the companies in all of those sectors are doing exactly the same thing trying to go to the same golf retreat going to the same fishing weekend or whatever it is. Um so so I I don't think that I think I um I don't think it is the case that that means that um um thoughtful political action in in in legislative form is made impossible. Though I totally understand why people say or think like you know your average punter is going wow that's is that the way it works but it is the way it works in the US. I mean it's not it's hardly it's hardly a secret and it's totally open there. There's nothing illicit about it. That's the crucial thing. Was it ever weird for you that these politicians who I'm sure were like holding these retreats and weekends uh with your team members were then up on the um hearing stage and giving the >> I'm the worst person to ask cuz I you know I come from a much smaller but but older democracy called the UK by comparison and this kind of behan as I think your wife is German you'll know a little bit about that you know just I mean >> it it's just it doesn't mean that there aren't money issues in the in which uh um politicians >> I just find it so hypocritical that they would take the money and then call this tech CEO in for the hearing and lambast them to show that they're tough on big tech. >> Wouldn't you prefer them at least to do that than then not lambast them. I mean I think I think I think if anything >> I prefer them to be effective I guess is my >> Yeah. No, no, no. I'm I'm with you and and um personally as a as a as I say as a non non non-American um I'm just stunned at the the the sort of the extraordinary amount of money that slloshes around in American um democracy. But it always has. It's kind of the way it is. and and the kind of European approach of having any kind of state subsidy or anything for ads or for any kind of politics is is considered to be for perfectly good reasons perhaps is considered to be deeply deeply sort of suspect here in the US. >> We do it in New York actually in New York we have matching funds. So if you every dollar you raise up until a certain amount you get like seven or eight dollars. Okay. So >> well I defer to you on that but that may be the case but >> given it is the way it is and right >> certainly in my job at Meta I dealt with the way the world that as it was not as I might ideally want it to be if I could architect it from its from its foundations. Um you'd want surely politicians to do exactly the thing you've just said which is hypocritical is they take the money and they invite the invite person X from Silicon Valley Y to um the the fishing weekend or the golf retreat. You want them surely then still to be able to get up on their hind legs and excoriate those th those those companies and apply pressure to them. But they've done nothing big tech. They've done nothing to big tech. They've done nothing. And that's what I'm saying. I you of course you you don't want them to like say you free pass. But to me the point is >> the thing that's really surprising the system itself is broken if that's what's going to happen because we see the effect and I'm not here saying we need to have big tech you know massive big tech regulation. Obviously that could be misguided as well. It's just that when you when you look at the way the system works, it's it's crazy to me. >> So, my experience just to just to do something very unfashionable, which is to stand up for the political class and to stand up for the um you know, the really um in many ways really thoughtful, good people who I saw were in the in the business of trying to represent these companies in DC and my team and elsewhere. They're not they're not shady. These are really decent people trying to just do a good decent day's job. But here's the thing, right? Um, I often found that the reasons why there there was no consensus across across the aisle on issues had less to do with who's gone on their their fishing retreat or their golf weekend, but more to do with deep differences between Republicans, Democrats on state preeemption, for instance. You know, that was something which constantly bedeled and and stopped uh progress. Now, you might say that was an alibi for people not to take action, but I was always very struck, you know, cuz I would ask myself, why on earth does the US of all countries not have a federal privacy law? It's like that, you know, this is you would have thought that would be entirely in line with the constitutional principles of this country and and I think it it often came down to very deeply held views about the relative um roles and responsibilities of the federal government and states and so on. Um the thing I am surprised about I have to say is why there hasn't been despite all the energy that that is generated on both sides of the aisle on this why there hasn't been more progress at federal level on um legislating uh to to to you know to make sure that kids and teens right are protected in a way that other users you know which is quite special compared to other users of social media and other other um online experiences that that does seem it and it doesn't surprise me at all that other other states It's California is only the latest example, perhaps the most significant one are now taking matters into their own into their own hands because that's a reasonable thing to do if nothing happens in C.