India-Pakistan, Building Back Military Power, and Immigration

In this episode of Econ 102, Erik Torenberg and Noah Smith discuss the recent India-Pakistan conflict, its implications for the crumbling Pax Americana, and the U.S.'s role in such conflicts, advocating for a focus on national interests. They then shift to the inadequacy of the U.S. defense industrial base, proposing measures to revive it, including increased military spending, industrial policy, and collaboration with allies. The conversation transitions to the slowdown in American middle-class wage growth between 1973 and 1994, linking it to a productivity slowdown and other economic factors. Finally, they explore the technological shift towards electricity replacing combustion in various sectors like vehicles, drones, and appliances, cautioning that America is falling behind in this transition due to a lack of understanding and misguided policies.