The White House (via OMB) strongly protests Congressional efforts within the FY 2027 NDAA to prohibit the purchase of warships from foreign shipyards. The Administration argues that these restrictions undermine national security by limiting flexibility and hindering its strategy of leveraging allied yards, such as in the 'Finland model,' to drive investment into U.S. shipbuilding capacity. This signals a significant policy shift toward integrating international partners into advanced naval construction, suggesting the Pentagon is prepared to bypass traditional domestic build requirements for future combat vessels.
How to Survive the AI Shock
English Summary
The article posits that while AI offers immense potential for global economic revitalization, the United States must first address deep-seated structural issues. The core challenge identified is decades of slow labor productivity growth, which has depressed average incomes and fueled significant political polarization both domestically and globally. To successfully navigate the 'AI Shock,' policy efforts must focus on leveraging technological advancements to boost overall worker productivity. Failure to do so risks exacerbating existing economic disparities and social instability, undermining AI's transformative potential.
中文摘要
本文提出，儘管人工智慧（AI）為全球經濟復甦提供了巨大潛能，但美國必須首先解決深層的結構性問題。文章指出的核心挑戰是數十年來勞動生產力增長緩慢，這導致平均收入停滯，並在國內和國際上助長了顯著的政治兩極化。若欲成功應對「AI衝擊」，政策努力必須將重點放在利用技術進步來提升整體勞工生產力。否則，不僅會加劇現有的經濟差距與社會不穩定性，更將損及人工智慧轉型帶來的巨大潛能。
Related Entries
-
1.
-
2.
The Western Pacific remains a highly active theater defined by sustained U.S.-led military exercises and escalating great power competition. Key evidence includes continuous joint operations, such as RIMPAC 2026 in Hawaii and the deployment of CSGs into the South China Sea, juxtaposed with increased naval activity from both China (PLAN task groups) and Russia near Japan's critical straits. These movements underscore a strategic push by non-allied powers to assert presence and challenge regional norms. Policy implications dictate that allied nations must maintain robust multilateral cooperation and interoperability to safeguard freedom of navigation and manage escalating tensions in the Indo-Pacific.
-
3.
The article argues that the post-Cold War era of U.S. unipolarity, established by the perceived invincibility demonstrated during the Gulf War, has ended. This decline is driven by globalization and technological diffusion, which have democratized advanced military capabilities, allowing regional actors to challenge major powers. Consequently, policymakers must prepare for a more volatile international order marked by frequent crises, heightened costs for securing global trade chokepoints, and reduced predictability from American power. The new rules dictate that great powers can no longer effortlessly impose their will through force.
-
4.
The article argues that current market borrowing costs are rising independently of the Federal Reserve's policy stance, challenging the assumption that the Fed controls all rates. Evidence shows significant increases in key rates—such as 2-year Treasuries and mortgages—even while the effective federal funds rate remains steady. This divergence occurs because market rates reflect complex factors like inflation expectations, credit risk, and geopolitical volatility, which are outside the central bank's direct control. Policymakers should therefore recognize that sustainable rate moderation requires credible disinflation and disciplined government budgets, rather than relying solely on Fed intervention.
-
5.
Despite recent trade setbacks, the U.S. retains fundamental structural economic leverage over China, particularly in high-tech sectors and intermediate goods. While Beijing can temporarily weaponize specific resources like rare earths, these chokepoints are vulnerable to diversification efforts by the West. The article argues that the most effective strategy is not unilateral action but coordinated multilateral pressure from U.S. allies across Asia and Europe. Washington must therefore coordinate its economic statecraft with partners to maximize damage to China’s export-dependent model.