New Economy

America’s Defense Industry Is in Trouble, With No Plan to Fix It

China and Russia are racing ahead while the US keeps running in place.
Russian missile launchers in Red Square during a Moscow military parade in 2024. Photographer: Alexander Nemenov/AFP
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It’s hard to dispute that Donald Trump has a knack for identifying problems.

Most Western geopolitical analysts would likely agree that the European Union’s inability to deter Russia by itself is an issue. Economists similarly wouldn’t argue with Trump’s assessment that the US failed to address its loss of manufacturing jobs after China entered the World Trade Organization.