Reshaping America’s Economy for the Superintelligence Century with Jacob Helberg

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No Priors: Artificial Intelligence | Technology | Startups 40 min 3 speakers 8 chapters transcribed 1 month ago
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What is Jacob Helberg’s agenda for reshoring America’s supply chain?

Elad Gil 0:01
What?
Sarah Guo 0:05
Hi listeners, welcome back to No Priors. Today Alad and I are here with Jacob Helbert, the Under Secretary of State designate for economic growth, energy and the environment, co-founder of the Hill and Valley Forum, connecting Silicon Valley to policymakers in DC, and author of the book The Wires of War: Technology and the Global Struggle for Power. We talk about what America needs to change about its global supply chain, why nuclear is the key to energy abundance, the return of American manufacturing and superintelligence as a means for productivity and economic growth. Jacob, thanks so much for being here.
Jacob Helberg 0:38
Thanks for having me.
Sarah Guo 0:39
So very exciting uh in terms of your new role as Under Secretary for Umic Growth, Energy, and the Environment. Uh can you start by just like telling us a little bit about what your initial agenda is or what you're excited about?
Jacob Helberg 0:56
A few of the topics that I discussed in my opening statement and my Senate confirmation are um focused on securing our supply chains. Our economy is extremely over reliant on a supply chain system that's very brittle. We have 90% reliance on uh uh critical minerals that are refined in China, on semiconductors that are manufactured in Taiwan. Um we have one of the best innovation ecosystems in The world, but that innovation ecosystem is sitting on top of a supply chain system that is very exposed to potential geopolitical disruptions. And so helping move the needle to uh forge new partnerships with other countries to secure that is indispensable. Uh, as well as supporting ongoing efforts by the administration to reshore as much as we can right here in the US would really go a long way to help give our building
Jacob Helberg 1:46
Builders the tools that they need to do what they do best, which is build products people love that are disruptive and that help grow the American economy.
Elad Gil 1:53
What what are some of those things that you think are most important to be sure? And I I think you also have sort of a broader purview of the anatomy of the US economy changing and mutating. And could you actually give us the big picture and then kind of the specifics in terms of How do you think things are shifting and then what do you think is most important to kinda bring back?
Jacob Helberg 2:09
Yeah, totally. So one of the fascinating things about the this current era and decade that we're in is um we're actually really seeing the juxtaposition between the macroeconomic effects of the policies implemented by the Trump administration, uh juxtaposed with um in incredibly powerful technological shifts, especially in artificial intelligence. And what I mean by That is President Trump came in and in stated a blitzkrieg of policy reforms, uh fast tracking data center permits. Uh on day one, he rolled out an EO to unleash American energy to facilitate and support um the production, uh, to surge production capacity for energy sources like oil, oil, gas, and nuclear, um, as well. As clean, beautiful coal, as he says.
Jacob Helberg 3:02
And so the net effect of all of these different policies, combined with incredibly fast-paced progress in artificial intelligence, is actually changing the makeup of our economy. And we're we're starting to see that in the data because for a long time, the American economy was primarily a consumption-driven economy. Economy. We have, you know, at different points in time for the last few decades been between 70 and 80% consumption driven. Over two-thirds of our economy have been entirely driven by services. Um, and about 10% has been manufacturing. And we're starting to see those numbers move. And um, the manufacturing makeup of our economy as a share of GDP. Has remained as of now roughly the same, but that's a lagging indicator.
Jacob Helberg 3:55
The more interesting one is we're seeing massive CapEx investment, as you guys know, that has really picked up in a statistically significant way.
Jacob Helberg 4:10
Part of that is the result of tax incentives. That is just making it easier to um to get permitting because as you guys know, a lot of this stuff boils down to how do you compress the window be when you want to make a CapEx investment, um, you know, it the business people make a decision about whether or not it's gonna take seven years or five years to actually get something up and running and compressing that window as much as possible actually.

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