Derek Thompson

And so ironically, things like the Walkman, Nintendo are part of the legacy of the 1970s oil crisis.

I also talked about how the oil crisis of the 1970s might have birthed the modern Republican Party, the stagflation that resulted in the U.S.

economy in the 1970s.

destroyed the New Deal order that Democrats had relied on for the previous 30 to 40 years.

And in the aftermath of that destruction, the anti-New Deal order became Reaganite neoliberalism, which was the political order of the next 20, 30, 35 years.

So those were the three long-term implications of the 1970s oil crises, Soviet Union, Japanese electronics, Ronald Reagan.

Today, we've talked about, I think, to my recollection, at least four

second order effects of this Iran war that we're looking at.

Number one, an enormous extension of China's military projection in the Pacific that could have major implications for like the big kahuna that everyone's thinking about in terms of geopolitics, which is what's the future of Taiwan.

Number two, Donald Trump, ironic global champion of solar power that this war could accelerate a shift toward renewables.

Number three, another shift of fossil fuel production from the

the Middle East to Latin America.

And number four, you just talked about the fact that this war has again, in addition to the Ukraine war, demonstrated just how powerful drones are as a military technology of the future and how it could level the balance between a major military superpower like the U.S.

and a less major military superpower like Iran after its missile systems have been demolished.

Let's think about one final second-order effect, and here we land in the realm of policy.

When, historically, the U.S.

has faced inflation, it's been the role of the Federal Reserve to apply the medicine.

I mean, this was...

The end of stagflation, early 1980s.

It was the Federal Reserve that jacked up interest rates, cooled off the economy, led to a recession, and ultimately led to the boom of the 1980s.