Defense & Aerospace Report Defense & Aerospace Air Power Podcast [Jan 8, 26] Season 4 E1: Auld Acquaintance
Jan 8, 2026
Dr. Rocket Ron Epstein, an economist at Bank of America known for his insights on defense budgets, joins retired Lt. Gen. Dave Deptula, Dean of the Mitchell Institute, for a compelling conversation. They dive into the implications of new executive orders limiting defense corporate buybacks and dividends. Deptula discusses the evolving National Security Strategy focusing on homeland defense and the complexities of air operations in Venezuela. The duo also tackles concerns about Air Force readiness and the critical need for air and space funding.
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Big Budget Claims Signal Real Investment Intent
- Rocket Ron Epstein reads the $1.5 trillion defense talk as a serious signal, even if the full amount is unlikely.
- He expects increased procurement and R&D investment as a likely allocation of new funds.
Use Long-Term Deals To Unlock Industrial Capacity
- Do structure long-term government take-or-pay or multi-year purchase agreements to justify contractors' capital investment.
- Epstein says guaranteed volume reduces contractor risk when building capacity for munitions and components.
Buyback Limits Are A Negotiation Lever
- The administration's push to curb buybacks and dividends is part negotiation and part leverage to extract performance from industry.
- Epstein suggests future contracts might include payout or buyback conditions as qualifications.