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The Indicator from Planet Money

How Iran is wasting American resources

The Indicator from Planet Money

NPR

Business

4.79.5K Ratings

🗓️ 19 March 2026

⏱️ 9 minutes

🧾️ Download transcript

Summary

Iran is using an affordable strategy to even the playing field in the war with the U.S. It’s using drones that cost in the thousands of dollars to combat American missiles that cost several million. Military analysts have already signaled concern about the U.S. producing enough munitions, and this isn’t helping. Today on the show, why the U.S. spends so much on munitions and what it’s learning from Iran. 

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Transcript

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0:00.0

We have a book coming out. Planet Money, a guide to the economic forces that shape your life.

0:07.1

It's packed with stories and graphics that illustrate economic principles that can help you make smarter decisions.

0:13.4

That's why we have special incentives for people to pre-order the book.

0:17.0

I'll explain at the end of the show or go to planetmoneybook.com for details.

0:26.5

NPR.

0:36.9

The U.S. and Israel war with Iran has exposed a fascinating economic imbalance.

0:43.0

The US has been launching big, multi-million dollar missiles at Iranian targets.

0:48.3

Iran has fired back with wave upon wave of inexpensive drones, costing only thousands of dollars. And these drones don't

0:56.6

look anything like your hobby drone that you might use to take photos on a hike. In the language of

1:01.8

the military, the word drone basically means an unmanned aircraft. Iran Shah had 136s are typical

1:08.4

of these low-cost drones. Picture a short missile with wide wings and a propeller

1:13.5

at the end. It's about the size of a go-cart and buzzes like a moped scooter. It uses GPS to find a

1:20.1

target and fly into it, blowing it up. Jerry McGinn is an expert on military supply, and he says

1:26.3

this wave of drones is a deliberate strategy by Iran.

1:30.4

They launch a lot of drones to try to have the U.S. kind of use their more exquisite weapons to

1:36.8

knock them down and deplete our stores. Last year, U.S. Defense Secretary Pete Hegeseth was

1:43.2

already concerned about the pace of the U.S. producing new munitions. This asymmetry in battlefield spending risks worsening the weapon supply further.

1:53.2

This is the indicator from Planet Money. I'm Waylon Wong. And I'm Darian Woods. Today on the show, drone warfare economics. We learn about why the US spends so much on munitions

2:03.4

and how it's starting to learn from Iran. There is a mismatch between the US and Iran and how

2:12.8

they're fighting. It involves drones. The US has a lot more firepower, yes, but Iran has figured out how to make the war expensive for the U.S.

2:22.5

Now, the estimates vary, but it appears Iran has fired more than 2,000 traditional missiles in the current war.

2:29.2

Most have been intercepted, according to Israel and Gulf countries. But what sets Iran apart is its intensive drone

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