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- [00:00]
Babbel Advertiser
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- [00:39]
Jackson Financial Representative
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- [01:10]
The Economist Narrator
The economist.
- [01:17]
Rosie Blore
Hello and welcome to the Intelligence from the Economist. I'm Rosie Blore. Today on the show, a chapter in our series on America's history, how war created a superpower and should you ever use emojis at work. But first, War has changed. So have the economics of war. Think of all those cheap drones that have proliferated in Ukraine. They're now an established feature of the battlefield. You don't really want to spend a million dollars on a missile if it's going to be taken out by a drone that costs much less. Tech companies in America spy an opportunity. They're now grabbing government defense contracts.
- [02:14]
Henry Tricks
We're seeing the rise of a plethora of tech companies that are offering cheap, nimble, timely delivery of weapons. And it's making the old guard of big military contractors in America nervous.
- [02:36]
Rosie Blore
Henry Tricks is our US Technology editor.
- [02:39]
Henry Tricks
Just as the country is coming to grips with the lessons that it's learning from the war in Iran and the ongoing war between Russia and Ukraine.
- [02:52]
Interviewer
And how is this shaping the nature of war? Who are these companies?
- [02:58]
Henry Tricks
There's many of them, but they're led by a trio of what are now being known as Neoprimes. Now, the primes refer to established giants within America's military industrial complex. And the Neoprimes are kind of like the new kids on the block. They are led by Palantir, it's probably the oldest of them. And Palantir is a software giant that provides intelligence systems. And then there's SpaceX, the Elon Musk space Company which provides a Star Shield satellite network that offers reconnaissance communications on the battlefield. And then there's an up and coming one from the west coast of California which is Anduril, and that makes air and sea drones alongside anti drone weaponry, software systems, et cetera. Now they have beneath them a number of smaller defense firms who are either making weapons or they're changing the way that weapons are made. They're changing the kind of defense manufacturing industry. And all of these have found a very receptive audience in the Trump administration, which actually has quite a few Silicon Valley types, call them tech Bros. In the Pentagon.
- [04:21]
Interviewer
So Henry, what you're talking about here is not so much new companies as new entrants into the defence market. What sort of projects are they actually getting?
- [04:32]
Henry Tricks
Yes, this has been a year with some particularly strong endorsements. So back in January, America's Secretary of War, Pete Hegseth traveled to SpaceX in Texas in order to release a new artificial intelligence strategy for the defense industry. And he drew inspiration from Elon Musk saying that the defense industry needed to accelerate like hell in the way that they make weapons. And then a couple of months later, you saw that Palantir, which runs a program called Maven that does command and control, this was designated a program of record, which means that it gets funding locked in for years ahead. And that's very much something that prime contractors rely on. And then you also saw Anduril, which has a number of contracts with the army, seeing those contracts consolidated into one big one that is supposedly worth up to 20 billion over 10 years. So these were a sign that really there is more importance and weight being put on these three in particular.
- [05:46]
Interviewer
And how is all of that actually changing the defence industry?
- [05:51]
Henry Tricks
It's been interesting to look at the way that the battle has been waged in Iran. There's been lots of use of expensive fighter jets and expensive missiles and whatever. And actually it's the Iranians that have been using the cheaper tech, the drones, et cetera. So at the moment, I think it's fair to say that the defence primes still win the lion's share of contracts. Their contracts are much bigger. I mean, the F30,35 stealth fighter program led by Lockheed Martin is worth something like $2 trillion over decades, which is substantially more than a $20 billion program for Anduril. But that said investors, at least they are sensing a changing of the guard, which is why venture capital money is pouring in to defense tech at record levels. There's a huge valuation premium put on these up. And part of that is also because there's a sense that a bigger share of the defence budget is going to go to them over the years ahead as the US tries to upgrade and really modernize its military.
- [07:10]
Interviewer
And Henry, there have been some questions about the relationship between these new entrants into the defence market and members of the Trump administration, haven't there?
- [07:22]
Henry Tricks
Yes, there have been some quite striking supportive statements made recently for the Neo Primes. President Trump himself rushed to the defense of Palantir recently when it was suffering from a short sellers attack and its stock was falling in the market, emphasizing what a great war fighting firm it was. And then his son Donald Trump Jr. Is also a partner at 1789 Capital, a VC firm that is invested in Anduril. So the risk here is that it jeopardizes the bipartisan support that there is for defense tech. To date, both Democrats and Republicans have supported this modernization of the military, and it would be unfortunate if a sense of favoritism jeopardized that bipartisanship.
- [08:14]
Interviewer
And Henry, you mentioned the use of AI in weapons, which of course we've spoken about on the show before. Where do these Neoprides primes stand in regard to that?
- [08:25]
Henry Tricks
All the neoprimes are advocates of using AI for military purposes, though they say that for now most of the stuff that's being used on the battlefield is more like machine learning than generative AI. But that said, Palantir has been using Claude models by Anthropic, the AI lab, for classified military activity in the war against Iran. Anduril proudly uses AI within its autonomous weapons. And SpaceX has just acquired Xai Elon Musk's AI lab, which will also do classified work for the Pentagon. So AI is being used for target identification on the battlefield. It's being used increasingly widely and it's incredibly controversial amongst the neoprenes. When I spoke to them, they played down the risks. They say that it's rather like self driving cars which are supposedly safer than human drivers, so it should minimize casualties on the battlefield. And they also insist that for the foreseeable future there will always be humans making the lethal decisions. However, they acknowledge that experiments are already underway to see how AI can handle one step after another in the kill chain. And you can tell that the Trump administration is rushing to make progress on this front. So when Anthropic recently stipulated that none of its models could be used for autonomous weapons or for mass surveillance, Hegseth's Department of War blacklisted it as a supply chain risk nearly bringing the company down in the process. And it's just a reminder of how fraught this whole new era of defence tech and AI remains.
- [10:23]
Interviewer
Henry, thank you very much for talking to me.
- [10:25]
Henry Tricks
Great talking to you, Rosie.
- [10:29]
Rosie Blore
And you can hear more on the upstart shaking up our defence industry on a recent episode of Money Talks, our weekly business and finance show. The link is in the show Notes.
- [10:49]
Babbel Advertiser
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- [11:28]
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- [12:39]
Rosie Blore
In July, America will be celebrating its 250th birthday. In the run up to the anniversary, we're charting important moments in the country's history using extracts from the Economist's Archive. This month War and the Making of a Superpower.
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Woodrow Wilson (archive)
The world must be made safe for democracy. Its peace must be planted upon the tested foundations of political liberty.
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Narrator
On April 2, 1917, President Woodrow Wilson called for America to enter the First World War.
- [13:19]
Woodrow Wilson (archive)
We have no selfish ends to serve. We desire no conquest no dominion. We seek no indemnity for ourselves, no material compensation for the sacrifices we shall freely make. We are but one of the champions of the rights of mankind.
- [13:37]
Narrator
America's intervention proved decisive in the war. The Allies won. Meanwhile, suffragettes argued that Wilson's idealistic rhetoric, his commitment to democracy abroad, did not seem to extend to half the population at home. Women. Women were powering the industrial war effort, and so Wilson buckled. By 1920, the 19th Amendment was added to the Constitution, legally guaranteeing the right for women to vote. In the 1920s, America roared into modernity. Henry Ford introduced assembly line production, cutting the cost of cars. Modern consumer culture was born. Flappers, jazz musicians, black market liquor. This was a time of alcohol prohibition, which the Economist was not a fan of.
- [14:43]
The Economist Narrator
There is an old story of a youthful British prince who said, when I am king, I shall make a law prohibiting all sin. No one could be visionary enough not to laugh at this boyish, unsophisticated idea. Yet some highly educated countries have allowed their elected representatives to pass laws almost as impossible at fulfillment as the mental project of the infant prince.
- [15:03]
Narrator
For a while, it seemed like the good times might roll on forever. They didn't. In October 1929, Wall street crashed, tipping the world into the Great Depression. America's response made matters worse. By 1933, one in four American adults were jobless.
- [15:27]
Henry Tricks
I pledge myself to a New deal for the American people.
- [15:37]
Franklin Delano Roosevelt (archive)
Give me your.
- [15:38]
Narrator
In 1933, a newly elected Franklin Delano Roosevelt presented his remedy for the Depression, the New Deal. The government insured bank deposits, provided relief for the jobless, strengthened labor protections, and gave millions of Americans jobs building roads and dams. The deal had its doubters, but it was mostly a welcome change to the excesses of laissez faire capitalism.
- [16:10]
Franklin Delano Roosevelt (archive)
We must be the great arsenal of democracy. For us, this is an emergency.
- [16:18]
Narrator
With words so similar to those of Wilson, his predecessor, in December 1940, Roosevelt explained why Americans must do more to help the British fight the Nazis. He insisted that aiding Britain offered the best hope of keeping America out of the war. More plausibly, he was buying Winston Churchill time until America could join it. Then, on December 7, 1941, Japan attacked Pearl harbor, and America entered another world war in the name of democracy. Ironically, America trampled on the liberties of those it claimed to defend. Roosevelt's administration interned roughly 120,000 people of Japanese descent, two thirds of them American citizens, on the grounds that they might engage in sabotage or espionage. Black soldiers were segregated during the war and returned home to more inequality on the battlefield. America relied on overwhelming firepower and complex logistics, hallmarks of the most advanced army the world had ever seen. And it emerged as the world's unquestioned superpower. On August 6, 1945, America unleashed its greatest weapon and a new horror upon the world. The bomb had been created by a team of American, British, and emigre scientists led by J. Robert Oppenheimer. They all rightly feared that Germany might build such a weapon. But when they saw the results, several scientists petitioned the new president, Harry Truman, not to use the bomb. But America dropped two one in Nagasaki and one in Hiroshima, killing around 200,000 people by the end of 1945. The economists described the atomic bomb as
- [18:38]
The Economist Narrator
the largest and most terrible of the horrors of war. One more weapon of destruction to which there is no answer. One more terror which is better to have on our side, but best not to have at all.
- [18:49]
Narrator
Japan surrendered on August 15, bringing an end to the war. In July 1944, in Bretton Woods, New Hampshire, negotiators designed a new economic system with America at the heart. More multilateralism followed. The next spring, delegates ratified the Charter for the United nations, with both America and the Soviet Union agreeing to take part. A new world order was born. We'll see you next time for our fifth chapter, Civil Rights and the Great Society.
- [19:54]
Rosie Blore
If you haven't already listened to the Weekend Intelligence, you definitely should. It's a personal story, but one that's universal, too. Nearly one in five births in Britain that follow IVF involve a donor. What happens to the children who are created? Should they know their donor's identity or find out how many siblings they have? We already knew that the modern family could be a complicated place. Now we hear just how complicated from some who are trying to approach it with more openness. 17 siblings and counting is in your feed already. You'll need to be a subscriber.
- [20:41]
Emoji Training Host
Hello, and welcome to our emoji training webinar. This session is aimed primarily at older workers who still don't have a clear grasp of what emojis to use and when. But it is open to people of all ages. I can see that most of you have done your preparatory assignment on what exactly the monocle emoji means. We'll discuss that later in the session and also do some emoji tests. First, though, let's just dive in and open it up to questions. I don't know whether it's appropriate to use the heart emoji at work.
- [21:16]
Henry Tricks
Am I implying that I'm in love with the person?
- [21:20]
Emoji Training Host
Great question. It depends on Whether you're using a reaction emoji, that's the small one that attaches to a specific message, which is clearly a response to what has just been said. If you send a heart emoji as a reply on its own, you're basically proposing I told my boss that I
- [21:39]
Henry Tricks
wouldn't be at work one week because I was suffering from amoebic dysentery. Then I got a notification that she liked my message. I've lost half my body weight and she's apparently taking pleasure in my misfortune.
- [21:52]
Emoji Training Host
If you do a thumbs up reaction emoji on some platforms, it tells the other person that you liked their message. Your boss should have written back, but she was probably acknowledging your message rather than rejoicing in it. Some gen zers regard thumbs up emojis as a bit frosty. By the way, this is why when
- [22:14]
Emoji Training Participant
someone makes a weak joke on a group channel, I feel under tremendous pressure to put that silly face with my tears rolling down his cheeks. I haven't laughed out loud since 1997, so this feels completely insincere. Is there a thin smile emoji that I could use instead?
- [22:31]
Emoji Training Host
There is, but it wouldn't be wise. The tears of joy emoji is the equivalent of that small snorting sound people make in real life when they want to acknowledge a failed attempt at humor. If you ever do find something genuinely funny again, use the tears emoji tilted to the side. This implies actual amusement.
- [22:55]
Interviewer
I frequently make weak jokes and everyone responds with these faces with tears running down their cheeks. I think they might be mocking me. How can I tell?
- [23:05]
Emoji Training Host
Are any of them tilted?
- [23:08]
Henry Tricks
The emojis are all too small for me to see properly, and then when I do zoom in on them, I still don't know what they mean.
- [23:16]
Emoji Training Host
I hope this session will help, but also try not to worry. A sense of perpetual confusion is part and parcel of working in any office environment. This is just a variation on that feeling.
- [23:28]
Narrator
I work at an eggplant farm.
- [23:31]
Emoji Training Host
You'll see I've muted this person. Someone makes a variation on this tired joke at every session I run.
- [23:40]
Rosie Blore
I still find the whole emoji thing totally infantilizing. I'm supposed to let off a virt party popper every time we publish an episode. Why?
- [23:49]
Emoji Training Host
I'm not three it's part of joining in. People used to celebrate things by getting drunk at lunchtime. Emojis are cheaper, faster, and generally preferred by HR departments. Now I'm going to need you all to come back next week. Emoji use is changing all the time. What I've told you is already out of date.
- [24:12]
Rosie Blore
Andrew Palmer is host of Boss Class, our podcast series on work and management. That's all for this episode of the Intelligence. See you back here tomorrow.
- [24:52]
Franklin Delano Roosevelt (archive)
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- [25:07]
Babbel Advertiser
Par le tu francais hablas espanol Par le italiano if you've used Babbel, you would Babbel's conversation based technique teaches you useful words and phrases to get you speaking quickly about the things you actually talk about in the real world. With lessons handcrafted by over 200 language experts and voiced by real native speakers, Babbel is like having a private tutor in your pocket. Start speaking with Babbel today. Get up to 50 25% off your Babbel subscription right now at babbel.com acast spelled b a b b e l.com acast rules and restrictions may apply.