AI is happening, and AI is only happening in two places. Like it's only U.S. versus China, and there's a whole competition thing there, but the U.S. is, like, very powerful. If you disaggregate sectors of the economy over the last 25 years, what you find is basically everything that technology touches, basically collapses in price. If the country is growing faster, it's going to be a fundamentally happier place because people, whichever side of the political spectrum you're on, there's going to be a sense of optimism. There's going to be a sense of opportunity. There's going to be the sense that your kids are going to live better lives than you do. Today on the A16D podcast, we're sharing an episode from Joe Lonsdale's American Optimist, recorded live at the first Ronald Reagan Economic Forum.

Joe sits down with A16Z co-founder Mark Endrescent to explore one of the biggest questions of our time.

Can the rise of AI spark a new American industrial revival and what would it take to make sure the entire country, including rural America, shares in the growth?

They cover the history of U.S. manufacturing, debate over tariffs and trade,

and how AI and robotics might create the jobs and economic momentum of the future. They also dig into immigration, regulatory bottlenecks, and what smart policy should look like in an AI-driven

world. Let's get into it. This information is for educational purposes only and is not a recommendation to buy, hold,

or sell any investment or financial product.

This podcast has been produced by a third party and may include pay promotional advertisements,

other company references, and individuals unaffiliated with A16Z.

Such advertisements, companies, and individuals are not endorsed by AH Capital Management

LLC, A16Z, or any of its affiliates. Information is from sources deemed reliable on the

date of publication, but A16Z does not guarantee its accuracy. Mark, everyone, welcome to our

first annual Reagan Economic Forum. It's an honor to have you guys here. We talk a lot here, of course, about Reagan's economic pillars and policies, which include deregulation and lower taxes and lower spending, all of which are very relevant today. But, Mark, I want to start off asking you about someone. I know you've been reading about and President Trump's been reading about from 100 years before, which is William McKinley. And William McKinley, of course, was a staunch protectionist at first. Is this historical example of how to revitalize American industry relevant today? Is it relevant to everything we're doing in AI and energy? Like, how do you think about this? Yeah, so I've been doing my best to kind of spin up in the history of this. And so there was something in the 19th century, actually originally created by Alexander Hamilton, when he was Treasury Secretary called the American system.

And, you know, to kind of spin up in the history of this. And so there was something in the 19th century, actually originally created by Alexander Hamilton,

when he was Treasury Secretary called the American system. And, you know, it was like 80 years before McKinley, 90 years before McKinley. What they were dealing with was the British Empire, right? The UK was the preeminent industrial power. They were the first, like, giant industrial power on planet Earth and had built this very commanding, economic, technological military position.

And, of course, America, at the time of the revolution, it was mostly farmland. power on planet Earth and had built this very commanding economic, technological military

position in, of course, America at the time of the revolution was mostly farmland.

And then there was this raging debate between Hamilton and Jefferson as to whether

you'd want America to be an industrial kind of urban financialized power, which is what Hamilton

wanted, or of kind of a rural farming aristocratic power, which is what Jefferson wanted.

And Hamilton won that debate. And so that led to what was called the American system.

The American system led to the creation of the United States

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