Economist Podcasts — “Over Troubled Waters: Trump’s Bridge-and-Plant Plot”

April 7, 2026

Episode Overview

This episode of The Intelligence from The Economist explores three major topics:

• President Donald Trump’s public threats to cripple Iran’s infrastructure and the escalating US-Iran conflict
• The enduring strength and evolution of India's IT outsourcing sector despite AI disruption fears
• The rise of “Granny Core” hobbies among Gen Z, signaling a generational shift towards old-fashioned pastimes

The reporting is sharp and global, ranging from tense geopolitical standoffs to surprising cultural trends.

Segment 1: Trump’s Iran Threats & Regional War Escalation

[02:05–12:13]
Key Correspondents: Jason Palmer (host), Greg Karlstrom (Middle East Correspondent), and remarks from Donald Trump

Main Points

• Trump’s Escalating Rhetoric
  Trump has amped up threats against Iran, stating almost nothing is off-limits, including civilian infrastructure like bridges and power plants.

  • Notable Quote (Trump, 02:19):
    “We have a plan... where every bridge in Iran will be decimated, where every power plant in Iran will be out of business, burning, exploding and never to be used again.”

• Moving Deadlines & Uncertainty
  Trump’s threats are attached to vague, shifting deadlines. Speculation abounds about imminent strikes and possible last-minute negotiations.

• Current State of the War

  • Both sides (US/Israel vs. Iran) claim victories:

    • Iran wages an asymmetric campaign targeting the global energy economy (attacks on Saudi plants, UAE gas fields, Bahraini and Kuwaiti refineries).
    • US/Israel have systematically targeted Iran’s military production capabilities, particularly missile factories.

  • Neither is securing definitive strategic gains; both are “winning” on their own terms but failing to end the war favorably.

  • Notable Quote (Greg Karlstrom, 03:40):
    “So they’re both doing operationally what they set out to do, but they're not achieving their strategic aims yet... so the narrative on both sides is that they're winning, but in strategic terms, no one is winning yet.”

• Parallel Wars & Propaganda

  • US/Israel vs. Iran: direct military engagement, e.g., US rescue of two airmen shot down over Iran.

  • Iran vs. Gulf states/world economy: targeting energy and infrastructure, causing global ripples.

  • Notable Moment (05:18):
    Karlstrom describes the conflict as “parallel wars” with each side optimizing their own story of success, e.g., the F-15 downing and subsequent US rescue mission.

• Heavy Economic & Military Costs on All Sides

  • US military hardware losses (AWACS plane, refueling tankers)
  • Damage at key Gulf regional bases
  • Gulf countries facing capital flight, a tourism downturn, and massive government bailouts
  • Regional reputational damage: “Gulf countries… no longer look like oases of stability” (Greg Karlstrom, 08:17)

• Collateral Damage to Iran

  • Destruction of steel mills, gas fields, petrochemical plants, and even a university
  • Major hit to non-oil exports ($7B/year steel industry down)
  • Massive layoffs, surging unemployment, and exacerbated inflation (pre-war already near 50%).

• What’s Next? Prospects for Escalation

  • Ceasefire negotiations are faltering; Iran uninterested in anything less than a total end to hostilities.

  • “Escalation seems like the most likely path we’re going down.” (Greg Karlstrom, 10:22)

  • Trump’s threats to wipe out Iran’s electric grid would likely constitute a war crime and could have catastrophic humanitarian consequences.

  • Notable Quote (Greg Karlstrom, 11:14):
    “If he [Trump] does what he said he’s going to do, first of all that will almost certainly qualify as a war crime... The consequences for Iran will be profound—to its economy, to public health... If those things are successfully attacked, you’re talking about entire cities in the Gulf that could very quickly become uninhabitable.”

  • Conclusion: The region stands “on the precipice” of even broader disaster if threats escalate further.

Segment 2: AI, India’s IT Industry, and the Elusive Jobs Apocalypse

[13:19–18:57]
Key Correspondents: Jason Palmer (host), Gavin Jackson (South Asia Business and Economics Correspondent)

Main Points

• AI Threatens IT Outsourcing — Or Does It?

  • Fears abound that advanced AI code-generation tools like Claude Code will devastate India’s IT outsourcing model by automating grunt work.

  • Memorable Quote (Jason Palmer, 13:55):
    “This is starting to feel like a kind of running theme on this show about the AI doomsday scenarios not playing out yet.”

• Why AI Disruption Is So Slow

  • Complexity of client systems, regulatory hurdles, and legacy infrastructure make full AI automation hard to implement.
  • Outsourcing firms see new opportunities: reconfiguring businesses to use AI is itself lucrative consulting work.
    • “Businesses are complicated things... Claude Code isn’t a plug-and-play sort of thing.” (Gavin Jackson, 14:52)

• Indian Industry Is Moving Up the Value Chain

  • Shift from basic coding for hire to managing more complex, integrated business IT operations.
  • Global Capability Centers (GCCs): Western firms establish their own bases in India, keeping talent and intellectual property in-house.
    • Result: Indian engineers are still critical, but roles shift toward higher-skill, ownership-intensive work.

• No Hard Numbers Showing a Jobs Collapse

  • “Revenue is largely growing at the same place, headcount is growing at the same pace. You don’t see anything in the hard numbers, despite all this huge amount of talk.” (Gavin Jackson, 15:50)

• Takeaways & Broader Lessons

  • Technology takes time to integrate meaningfully.

  • India’s IT ecosystem is adapting, not shrinking.

  • Human skill (and India’s huge engineering labor pool) remains valuable even as AI advances.

  • Notable Closing Quote (Gavin Jackson, 18:17):
    “Ever since ChatGPT debuted, the Indian outsourcers have been flagged as the sector most exposed to AI displacement... But three years on, the disruption’s not revived. So even though it’s not in the way people predict it, it does show the impact that AI is having on business. The tech may upend the industry, but its overall effect is unclear or uneven, and there may not be big aggregate gains to be had.”

Segment 3: “Granny Core” — Gen Z’s Unlikely Revival of Old-Fashioned Hobbies

[19:09–22:10]
Key Correspondents: Caitlin Talbot (Digital Culture Correspondent), Jason Palmer (host)

Main Points

• Hot Girl Hobbies… or Granny Hobbies?

  • Gen Z is flocking to activities like baking, bingo, knitting, crocheting, pottery, flower arranging, and even birdwatching.
  • Statistics reveal a notable rise: fourfold increase in British flower-arranging class attendance (2024–2025); 2.5 times more puzzle competitions in the US.

• Not Just for Fun — It’s Culture and Identity

  • These pursuits are associated with nostalgia and a yearning for “times they never experienced.” Psychologists call this anamoya.

  • Gen Z emulates the fashion, decor, and even holiday styles of their grandparents—think florals, cardigans, cruises.

  • Notable Quote (Caitlin Talbot, 21:00):
    “In an era of flashy screens, youngsters want the old things, whether that’s knitting or embroidery or watching birds.”

• Why the Trend?

  • These slow, craft-oriented pursuits provide a “slower, more grounded sense of connection,” resembling the quality time of earlier generations.
  • Therapeutic benefits: activities like knitting offer relaxation and mindfulness, counterbalancing the frantic pace of modern life.

• Cultural Impact

  • “Granny core” now influences fashion, homeware, and social life—signaling a broad reevaluation of what leisure and self-expression can look like in the tech age.

  • Closing Thought:
    “In a world where everything seems to be speeding up, some young people really do want to slow down.” (Caitlin Talbot, 21:50)

Memorable Quotes & Moments (with Timestamps)

• Trump’s Threats:
  “We have a plan... where every bridge in Iran will be decimated… burning, exploding and never to be used again.” – Donald Trump [02:19]

• On Parallel Wars:
  “America and Israel are fighting Iran, and then Iran is fighting mostly its Gulf neighbors and the world economy. Both sides can claim to be winning their own war, even as they’re losing the other one.” – Greg Karlstrom [05:18]

• On Escalation as the Most Likely Scenario:
  “Escalation seems like the most likely path that we’re going down.” – Greg Karlstrom [10:22]

• On AI Doomsday Not Arriving:
  “This is starting to feel like a kind of running theme on this show about the AI doomsday scenarios not playing out yet.” – Jason Palmer [14:43]

• On Nostalgia for a Time Never Lived:
  “Young people embrace nostalgia or a yearning for a time that perhaps they didn’t get to experience. Psychologists call this Anamoya.” – Caitlin Talbot [21:00]

Timestamps for Key Segments

• [02:05] Trump’s threats and strategy regarding Iran’s infrastructure
• [03:40] Both sides’ operational vs. strategic goals in the US-Iran war
• [05:18] The notion of “parallel wars” and latest military incidents
• [06:50] Costs and damage to US, Gulf allies, and Iran
• [10:22] Prospects: escalation, stalemate, or peace?
• [13:19] AI and the Indian outsourcing sector: Not the apocalypse
• [15:50] Global Capability Centers and vertical integration in India
• [18:17] Industry adapting, not thinning: unclear overall impact
• [19:42] Granny core: Gen Z’s surprising adoption of old-school hobbies
• [21:00] The psychology and cultural impact of this trend

Tone & Style

The tone is analytical, probing, and at times laced with dry wit. Correspondents deliver candid assessments, direct quotes add flavor and authority, and cultural reporting brings a lively human dimension.

This episode provides a sweeping view of global risk and surprising resilience—both geopolitical and generational.