“…challenges misconceptions that distort our economic debates.” - Arthur Brooks, President of the American Enterprise Institute
“…reminds us that inequality sends a signal of what society lacks most, in America’s case, entrepreneurship and risk taking.” - Lawrence Lindsey, CEO, The Lindsey Group, former Director of the National Economic Council
“…a fresh argument for the productive value of inequality.” - David Autor, Professor of Economics, Massachusetts Institute of Technology
“…a comprehensive explanation of the modern economy.” - Julian Robertson, Founder, Tiger Management
“…a must-read for serious students of economic policy.” - Glenn Hubbard, Dean, Columbia Business School, and former Chairman of the Council of Economic Advisers
“…a comprehensive explanation of the modern economy.” - Julian Robertson, Founder, Tiger Management
“Unintended Consequences is full of substance, it is one of the must-read books of the year, and once I finish it I will be giving it a second read through right away.” - Tyler Cowen, Professor, George Mason University
“Unintended Consequences provides a provocative interpretation of the causes of the global financial crisis and the policies needed to return to rapid growth. Whether you agree or not, this analysis is well worth reading.” - Nouriel Roubini, New York University; Chairman, Roubini Global Economics
“…a very valuable contribution.” - Larry Summers, former Secretary of the Treasury and director of the National Economic Council, president emeritus, Harvard University
“There are an amazing number of good ideas and interesting points made in Unintended Consequences. The thinking underlying it, and the obvious depth of understanding of the author, are very impressive.” - Steven Levitt, coauthor of Freakonomics; 2004 John Bates Clark Medal
“…serious thinking for serious thinkers. …a thought-provoking blueprint for growing middle- and working-class incomes.” - Mitt Romney, former Governor of Massachusetts
“…challenges misconceptions that distort our economic debates.” - Arthur Brooks, President of the American Enterprise Institute
AI Summary.Russia's health regulator said inspections of a Siberian anti-plague institute found no emergency situations and no epidemiological risk after a 28-year-old researcher there died of pneumonia of unknown origin. The World Health Organization said it had not received sufficient information from Russia to complete a full risk assessment, and Russia declined offers of outside assistance.
Paul SonneNew York Times
Date Posted:
Russian authorities maintain that no “emergencies” have occurred at the Irkutsk Anti-Plague Research Institute. Jennifer Nuzzo, an epidemiologist at Brown University said, “Something is not adding up about this situation. You don’t quarantine 200 people for one plague case. You don’t close multiple hospital units in response to one infection.”
Is international concern persisting after a lab researcher's unexplained death?
Core argument: Russia’s health regulator Rospotrebnadzor said two biological safety commissions found “no emergency situations” at the Irkutsk Anti-Plague Institute after 28-year-old researcher Darya Shipilova died October 2, 2026, of pneumonia of unknown origin.
Russian authorities said on Wednesday that a researcher at a Siberian anti-plague institute who died from a mysterious pneumonia had been vaccinated against the pathogens she worked with and that no “emergency situations” had occurred at the lab. Rospotrebnadzor, the Russian health regulator, issued the statement after the United States urged Moscow to be more forthcoming about the possible public health incident and the World Health Organization asked for more information to make an accurate assessment of any threat. The relatively thin details from the Russian authorities have unnerved U.S. officials and others around the world who remain scarred by the coronavirus pandemic and efforts by the authoritarian government in China, where the virus originated, to cover up information.
Takeaways by Macro Roundup® AI
Russia’s health regulator Rospotrebnadzor said two biological safety commissions found “no emergency situations” at the Irkutsk Anti-Plague Institute after 28-year-old researcher Darya Shipilova died October 2, 2026, of pneumonia of unknown origin.
Medical observation was completed for more than 90% of Shipilova’s contacts with no infectious pathology detected, and nearly 5,000 laboratory tests found no hazardous pathogenic microorganisms.
The World Health Organization said the public health risk to the general population appears low, then later said Russia had not provided sufficient information to complete a full risk assessment, after the U.S. State Department sent a diplomatic démarche and Russian officials declined President Trump’s offer of assistance.
Related Articles:
US ‘Monitoring’ Situation Around Suspected Case Of Plague In Russia— The US says it is monitoring a suspected case of pneumonic plague in Russia, where authorities have imposed sweeping quarantine measures in Siberia while maintaining there has been no outbreak. Regional officials convened an emergency meeting with the public health authority over a suspected case of a highly dangerous infectious disease.
The Russian Paradox: So Much Education, So Little Human Capital— Russia is an exception to the global correspondence between educational attainment and human capital, combining an advanced educational profile with strikingly poor health outcomes and only weak contributions to knowledge production and skills-intensive service exports. World Health Organization estimates put male life expectancy at age 15 near that of the world's least developed countries.
Russians Shun Putin’s Plea for More Babies as Population Shrinks— Russia's population decline has accelerated, with births falling 3.4% to 1.22m — the lowest level in roughly 25 years — while deaths rose 3.3% to 1.82m, according to Russia's Federal Statistics Service. The decline is attributed in part to Russia's war on Ukraine, though detailed mortality data has been classified and war deaths enter the statistics with long delays.
AI Summary.The US says it is monitoring a suspected case of pneumonic plague in Russia, where authorities have imposed sweeping quarantine measures in Siberia while maintaining there has been no outbreak. Regional officials convened an emergency meeting with the public health authority over a suspected case of a highly dangerous infectious disease.
Anastasia Stognei and Katya AreninaFinancial Times
Date Posted:
A researcher at Siberia’s Irkutsk Anti-Plague Research Institute died two days after being admitted to a hospital, likely of pneumonic plague. Local hospitals have been quarantined.
Is the US watching a suspected plague case in Russia?
Core argument: The US said it is monitoring developments around a suspected case of pneumonic plague in Russia, where authorities have imposed sweeping quarantine measures in Siberia while insisting no outbreak has occurred.
The US has said it is monitoring developments relating to a suspected case of pneumonic plague in Russia, which has imposed sweeping quarantine measures in Siberia over the incident while insisting there has been no outbreak. The scale of the Russian authorities’ response suggested they were treating the situation as exceptional. Irkutsk region governor Igor Kobzev said in a social media post on October 2 that he held an “emergency meeting” [with the public health authority Rospotrebnadzor] over “a suspected case of a highly dangerous infectious disease.”
Takeaways by Macro Roundup® AI
The US said it is monitoring developments around a suspected case of pneumonic plague in Russia, where authorities have imposed sweeping quarantine measures in Siberia while insisting no outbreak has occurred.
Irkutsk region governor Igor Kobzev said in a social media post that he held an “emergency meeting” with the public health authority Rospotrebnadzor over “a suspected case of a highly dangerous infectious disease.”.
The scale of the Russian authorities’ response suggested they were treating the situation as exceptional.
Related Articles:
Mass Mortality and Infected Mammals: Australia’s Bird Flu Fears Come True— Australia has begun vaccinating at-risk bird species against H5N1 bird flu, including 5,000 little penguins in Victoria, and has confirmed its first case in a long-nosed fur seal, a species for which no vaccine is approved. The government says the disease has not reached poultry or farms and human risk remains low.
The Russian Paradox: So Much Education, So Little Human Capital— Russia is an exception to the global correspondence between educational attainment and human capital, combining an advanced educational profile with strikingly poor health outcomes and only weak contributions to knowledge production and skills-intensive service exports. World Health Organization estimates put male life expectancy at age 15 near that of the world's least developed countries.
Russians Shun Putin’s Plea for More Babies as Population Shrinks— Russia's population decline has accelerated, with births falling 3.4% to 1.22m — the lowest level in roughly 25 years — while deaths rose 3.3% to 1.82m, according to Russia's Federal Statistics Service. The decline is attributed in part to Russia's war on Ukraine, though detailed mortality data has been classified and war deaths enter the statistics with long delays.
AI Summary.US defense contractors face a coming requirement to remove certain metals sourced from China and other adversary countries from their supply chains, which many contractors say isn't feasible, while some Pentagon officials target a "closed loop" of US and allied supply for some minerals by 2030.
Heather Somerville and Andrew MollicaWall Street Journal
Date Posted:
CRU, a UK commodities-data provider, projects China will lose market share in many of the elements and minerals it has most tightly controlled by 2030, with the exception of cobalt.
Can defense contractors remove Chinese-sourced critical minerals from supply chains?
Core argument: U.S. defense contractors will be required by next year to eliminate certain metals sourced from adversary countries including China, a requirement many contractors say isn’t feasible despite the progress being made.
By next year, U.S. defense contractors will be required to eliminate from their supply chain certain metals sourced from adversary countries including China, a requirement that many contractors say isn’t feasible despite the progress being made. Some Pentagon officials say they are aiming for a “closed loop” of U.S. and allied supply chains for some minerals by 2030. In April, Deputy U.S. Trade Representative Rick Switzer said that with help from Japan and Europe, the U.S. has the capacity to develop an end-to-end critical-minerals supply chain free of China within six to 12 months, if the country were pressed to do so. Recent projections from CRU, a London-based commodities-data provider, show China losing market share by the end of the decade in many of the elements and minerals it had most tightly controlled.
Takeaways by Macro Roundup® AI
U.S. defense contractors will be required by next year to eliminate certain metals sourced from adversary countries including China, a requirement many contractors say isn’t feasible despite the progress being made.
Deputy U.S. Trade Representative Rick Switzer said in April that, with help from Japan and Europe, the U.S. has the capacity to develop an end-to-end critical-minerals supply chain free of China within six to 12 months if pressed to do so.
Projections from CRU, a London-based commodities-data provider, show China losing market share by the end of the decade in many of the elements and minerals it had most tightly controlled, while some Pentagon officials aim for a “closed loop” of U.S. and allied supply chains for some minerals by 2030.
Related Articles:
China Restricts Trading With Some US Rare Earth Companies— China has added 10 American companies to its "entities list," restricting trading with firms central to US efforts to build a rare earth supply chain rivaling Beijing's, including USA Rare Earth, MP Materials, and motor manufacturer Aveox.
How to Fight an Economic War— China earned about $3.4bn from exporting rare-earth elements and magnets in a year, while the U.S. Geological Survey estimates a 30% disruption to U.S. supply of the rare-earth element neodymium alone would cut U.S. GDP by 2.2%, over $600bn. This asymmetry gives Chinese export controls their leverage.
How Japan Built a Rare-Earth Supply Chain Without China— Japan has reduced its reliance on Chinese rare earths, with industry estimates putting China's share of Japanese rare-earth imports at roughly 60% to 70%, down from 90% or more. Japan's alternative chain runs from an Australian open-pit mine through a separation plant in Malaysia to Japanese magnet makers supplying automakers.
AI Summary.Defense start-up Covenant plans to produce 1,000 Anthem deep-strike missiles a year at each of its German and US plants in 2027, rising to 5,000 a year at each site from 2028. At mid-six-figure euros each, versus roughly $4mn-$6mn for Tomahawks, the company says militaries could fire saturating barrages.
Laura PitelFinancial Times
Date Posted:
Covenant, a defense start-up, is opening manufacturing facilities in the US, Germany, and Israel to manufacture its new deep-strike munition at scale, with a production target of 5,000 annually at its US and German sites in 2028.
Can cheaper mass-produced missiles let militaries saturate targets with barrages?
Core argument: Covenant plans to produce 1,000 Anthem missiles a year at each of its German and US plants in 2027, rising to 5,000 a year at each site from 2028.
Covenant aims to produce 1,000 Anthem missiles a year at each of its German and US plants in 2027, and 5,000 a year at each site from 2028. [Anthem] would cost in the “mid six-figure” euros — a fraction of the price of Tomahawks, which are sold to overseas governments for roughly $4mn-$6mn apiece. Covenant declined to state the range of the Anthem but [Covenant's CEO] said the concept was partly a response to a German-British plan to jointly develop “deep precision strike” weapons with a range of more than 2,000km. Anthem will carry a warhead weighing up to 250kg half the 450kg payload of a Tomahawk. But Covenant said the lower cost and ability to be produced at scale would allow militaries to fire large barrages of the missiles to “saturate” targets such as weapons factories or military bases.
Takeaways by Macro Roundup® AI
Covenant plans to produce 1,000 Anthem missiles a year at each of its German and US plants in 2027, rising to 5,000 a year at each site from 2028.
Covenant prices the Anthem in the mid six-figure euros, a fraction of the roughly $4mn–$6mn that Tomahawks are sold for to overseas governments.
The Anthem will carry a warhead of up to 250kg, half the 450kg payload of a Tomahawk, and Covenant says its lower cost and scale would let militaries fire large barrages to saturate targets such as weapons factories or military bases.
Related Articles:
How Quickly Can the DOD Rebuild and Recast the Munitions Industrial Base?— The US Department of Defense's budget documents indicate low-cost munitions will reach scale before most advanced systems, with multi-year agreements projected to raise PAC-3 MSE interceptor capacity 233% to 2,000 per year, THAAD interceptors 317% to 400, and Precision Strike Missile output fourfold to about 550.
Is the Industrial Base on a Wartime Footing? A Progress Report— About 10,000 new firms have entered the US defense market in two years, and nontraditional companies received over $120bn in contract obligations in fiscal 2025, while munitions contract obligations have risen 330% since fiscal 2010. The Defense Department is signing large-scale multiyear munitions agreements and backing a rare earth supply chain outside Chinese control.
The Intellectual Spoils of War? Defense RD, Productivity and International Spillovers— The authors estimate that a 10% increase in government-financed R&D, largely defense, is associated with a 4.3% rise in privately funded R&D across OECD countries, indicating "crowding in" rather than "crowding out." They also find international spillovers raise private R&D abroad, though the overall effect on US productivity growth is modest.
AI Summary.China has developed hypersonic glide vehicles capable of launching air-to-air weapons to threaten high-value aircraft such as command-and-control planes thousands of miles away. A glide vehicle from a DF-17 missile could travel about 1,500 miles, while the DF-27 missile has a maximum range of about 5,000 miles.
Gerry DoyleBloomberg
Date Posted:
The Chinese military has developed hypersonic glide vehicles that can launch air-to-air weapons, which would allow them to hit high-value targets from thousands of miles away.
Can hypersonic glide vehicles threaten aircraft thousands of miles away?
Core argument: China's DF-27 missile has a maximum range of about 5,000 miles, putting Hawaii within reach, while a hypersonic glide vehicle deployed from a DF-17 could travel about 1,500 miles, just short of the distance from China to Guam.
The Chinese military has developed hypersonic glide vehicles that can launch air-to-air weapons, an advancement meant to threaten high-value targets such as command-and-control aircraft thousands of miles away. A hypersonic glide vehicle deployed from a DF-17 missile could travel about 1,500 miles, just short of the distance from China to Guam. The DF-27 missile has a maximum range of about 5,000 miles, putting Hawaii in range.
Takeaways by Macro Roundup® AI
China's DF-27 missile has a maximum range of about 5,000 miles, putting Hawaii within reach, while a hypersonic glide vehicle deployed from a DF-17 could travel about 1,500 miles, just short of the distance from China to Guam.
The Chinese military has developed hypersonic glide vehicles capable of launching air-to-air weapons, an advancement meant to threaten high-value targets such as command-and-control aircraft thousands of miles away.
Related Articles:
How Quickly Can the DOD Rebuild and Recast the Munitions Industrial Base?— The US Department of Defense's budget documents indicate low-cost munitions will reach scale before most advanced systems, with multi-year agreements projected to raise PAC-3 MSE interceptor capacity 233% to 2,000 per year, THAAD interceptors 317% to 400, and Precision Strike Missile output fourfold to about 550.
Is the Industrial Base on a Wartime Footing? A Progress Report— About 10,000 new firms have entered the US defense market in two years, and nontraditional companies received over $120bn in contract obligations in fiscal 2025, while munitions contract obligations have risen 330% since fiscal 2010. The Defense Department is signing large-scale multiyear munitions agreements and backing a rare earth supply chain outside Chinese control.
Trump Invokes Cold War-Era Law to Boost Munitions Production— The U.S. has invoked the Defense Production Act to expand munitions output amid doubts that American weapons makers can meet increased demand. U.S. officials say more than 1,000 long-range Tomahawk missiles and 1,500–2,000 air-defense interceptors have been fired in the war with Iran, and replacing those stockpiles could take up to six years.
AI Summary.The US Navy is testing an air-to-air missile capable of striking targets more than 290 miles away, farther than any other known weapon of its type. Analysts suggest such range may be most valuable for fleet air defense, countering bombers that launch long-range anti-ship cruise missiles.
Gerry DoyleBloomberg
Date Posted:
The US Navy is testing a new air to air missile that can hit targets at least 290 miles away. A defense analysis suggests the system is likely intended for “fleet air defense, not air to air combat.”
Is a longer-range air-to-air missile most useful for defending ships?
Core argument: The US Navy is testing an air-to-air missile able to hit targets more than 290 miles away, considerably farther than any other known weapon of that type.
The US Navy is testing a new air-to-air missile that can hit targets more than 290 miles away, considerably farther than any other known weapon of that type. Such weapons came into sharp focus last year when Pakistan said it used long-range Chinese-made missiles — with a reported range of about 300 kilometers — to down Indian fighter jets. Although missiles with that range can be used to hit high-value aircraft such as command planes or tankers, they might be more valuable for defending ships, said Peter Layton, a former Royal Australian Air Force officer “I think it’s meant to counter Chinese bombers firing long range anti ship cruise missiles,” Layton said. “Fleet air defense, not air-to-air combat.”
Takeaways by Macro Roundup® AI
The US Navy is testing an air-to-air missile able to hit targets more than 290 miles away, considerably farther than any other known weapon of that type.
Pakistan said it used long-range Chinese-made missiles, with a reported range of about 300 kilometers, to down Indian fighter jets.
Former Royal Australian Air Force officer Peter Layton said he thinks the missile is meant to counter Chinese bombers firing long-range anti-ship cruise missiles, serving fleet air defense rather than air-to-air combat.
Related Articles:
Is the Industrial Base on a Wartime Footing? A Progress Report— About 10,000 new firms have entered the US defense market in two years, and nontraditional companies received over $120bn in contract obligations in fiscal 2025, while munitions contract obligations have risen 330% since fiscal 2010. The Defense Department is signing large-scale multiyear munitions agreements and backing a rare earth supply chain outside Chinese control.
Defense Spending: Macroeconomic Consequences and Trade-Offs— Peacetime defense spending booms—when the two-year average of defense outlays rises 1pp of GDP—are followed by sizable increases in real GDP, government consumption, investment, and the capital stock, with a short-lived rise in inflation. Imports accelerate while exports are broadly unchanged, widening current account and trade deficits.
The Intellectual Spoils of War? Defense RD, Productivity and International Spillovers— The authors estimate that a 10% increase in government-financed R&D, largely defense, is associated with a 4.3% rise in privately funded R&D across OECD countries, indicating "crowding in" rather than "crowding out." They also find international spillovers raise private R&D abroad, though the overall effect on US productivity growth is modest.
AI Summary.The US Department of Defense's budget documents indicate low-cost munitions will reach scale before most advanced systems, with multi-year agreements projected to raise PAC-3 MSE interceptor capacity 233% to 2,000 per year, THAAD interceptors 317% to 400, and Precision Strike Missile output fourfold to about 550.
Jerry McGinn and A.J. DiltsCenter for Strategic and International Studies
Date Posted:
Lower cost munitions (under $600,000 per unit) will potentially start to arrive at scale over the next 18 to 24 months as production of higher quality exquisite systems ramps up. Capex of major defense contractors has risen 31% y/y as of Q2 as they expand production capacity.
How fast can defense munitions production capacity expand?
Core argument: Under framework agreements with Lockheed Martin of up to seven years, the DOD anticipates raising PAC-3 MSE interceptor capacity by 233%, from roughly 600 to 2,000 per year by 2030, and THAAD output by 317%, from 96 to 400 annually.
DOD budget documents confirm that low-cost systems will arrive at scale before most exquisite systems, as illustrated in Figure 2. Across framework agreements with Lockheed Martin of up to seven years, the DOD anticipates growing the production capacity of PAC-3 MSE interceptors by 233%, from roughly 600 to 2,000 interceptors per year by 2030; THAAD interceptor output capacity by 317%, from 96 to 400 units annually; and annual Precision Strike Missile production capacity fourfold to roughly 550 missiles. Backed by a DOD procurement commitment of up to seven years, RTX also plans to raise annual production of the Tomahawk missile to more than 1,000, the Advanced Medium-Range Air-to-Air Missile to over 1,900, and the Standard Missile 6 (SM-6) to over 500.
Takeaways by Macro Roundup® AI
Under framework agreements with Lockheed Martin of up to seven years, the DOD anticipates raising PAC-3 MSE interceptor capacity by 233%, from roughly 600 to 2,000 per year by 2030, and THAAD output by 317%, from 96 to 400 annually.
Backed by a DOD procurement commitment of up to seven years, RTX plans to lift annual production of the Tomahawk to more than 1,000 missiles, the Advanced Medium-Range Air-to-Air Missile to over 1,900, and the SM-6 to over 500.
DOD budget documents indicate low-cost systems will arrive at scale before most exquisite systems, with annual Precision Strike Missile production capacity set to grow fourfold to roughly 550 missiles.
Related Articles:
Is the Industrial Base on a Wartime Footing? A Progress Report— About 10,000 new firms have entered the US defense market in two years, and nontraditional companies received over $120bn in contract obligations in fiscal 2025, while munitions contract obligations have risen 330% since fiscal 2010. The Defense Department is signing large-scale multiyear munitions agreements and backing a rare earth supply chain outside Chinese control.
America’s Fight Back Against China Starts In Los Angeles—In Flip-Flops— El Segundo, California has developed a self-reinforcing entrepreneurial cluster of defense and hardware startups founded by former employees of SpaceX, Palantir and Anduril who cashed in stock options to launch their own firms. One of them, drone maker Neros, says it has America's highest drone production rate and has worked to remove Chinese technology, including circuit boards, from its products.
The Intellectual Spoils of War? Defense RD, Productivity and International Spillovers— The authors estimate that a 10% increase in government-financed R&D, largely defense, is associated with a 4.3% rise in privately funded R&D across OECD countries, indicating "crowding in" rather than "crowding out." They also find international spillovers raise private R&D abroad, though the overall effect on US productivity growth is modest.
AI Summary.Bloomberg Economics estimates the US has likely fired more than half its most advanced Patriot PAC-3 MSE interceptors and about 40% of its Terminal High Altitude Area Defense interceptors, with stocks of Precision Strike Missiles likely exhausted. The authors argue the US is not out of missiles but is running low on the right ones.
Magdalena Del ValleBloomberg
Date Posted:
A Bloomberg analysis finds the US likely consumed > half of its most advanced Patriot variant, ~40% of THAAD stocks and “likely exhausted” its magazine of new Precision Strike Missiles, a key long-range standoff missile in the Iran War.
Are US stocks of advanced interceptors and strike missiles running low?
Core argument: Bloomberg Economics estimates the US has likely fired more than half of its most advanced Patriot variant, the PAC-3 MSE, and about 40% of its Terminal High Altitude Area Defense interceptors.
[A Bloomberg analysis] found the US has likely fired more than half of its most advanced Patriot variant — the PAC-3 MSE — and about 40% of its Terminal High Altitude Area Defense interceptors. The Pentagon also burned through various types of long distance, so-called stand-off strike missiles with numbers of Precision Strike Missiles “likely exhausted,” as commanders tried to keep US troops out of harm’s way. “The US isn’t out of missiles, but it is running low on the right ones. And the choices that remain all come at a cost” [wrote Bloomberg Economics defense lead Becca Wasser and Courtney McBride].
Takeaways by Macro Roundup® AI
Bloomberg Economics estimates the US has likely fired more than half of its most advanced Patriot variant, the PAC-3 MSE, and about 40% of its Terminal High Altitude Area Defense interceptors.
Bloomberg Economics finds the Pentagon burned through various long-distance stand-off strike missiles, with numbers of Precision Strike Missiles "likely exhausted," as commanders sought to keep US troops out of harm's way.
Bloomberg Economics defense lead Becca Wasser and Courtney McBride write that the US "isn't out of missiles, but it is running low on the right ones," with the remaining choices all coming at a cost.
Related Articles:
Renewed Iran War Would Test Diminished Interceptor Inventories— Air defense against Iranian missile attacks has achieved high but imperfect interception rates, and the interceptors expended have left Patriot inventories under 1,000 and THAAD inventories at about 250. Diminished stockpiles may force more risk-taking on interceptions and pose a near- to medium-term risk to U.S. readiness for a war with China in the western Pacific.
Is the Industrial Base on a Wartime Footing? A Progress Report— About 10,000 new firms have entered the US defense market in two years, and nontraditional companies received over $120bn in contract obligations in fiscal 2025, while munitions contract obligations have risen 330% since fiscal 2010. The Defense Department is signing large-scale multiyear munitions agreements and backing a rare earth supply chain outside Chinese control.
America’s Fight Back Against China Starts In Los Angeles—In Flip-Flops— El Segundo, California has developed a self-reinforcing entrepreneurial cluster of defense and hardware startups founded by former employees of SpaceX, Palantir and Anduril who cashed in stock options to launch their own firms. One of them, drone maker Neros, says it has America's highest drone production rate and has worked to remove Chinese technology, including circuit boards, from its products.
