"Upstream" with Erik Torenberg cover image

"Upstream" with Erik Torenberg

E128: US-Europe Relations, How Japan Can Strengthen The Yen, and Predicting AI’s Growth Effects w/ Noah Smith

Mar 23, 2025
Noah Smith, an economist and writer known for his sharp insights on economic trends, joins the discussion. He tackles the shifting dynamics of US-Europe relations and the implications of America's reduced commitment. Smith also explores how Japan can strengthen the yen, proposing a potential renewed Plaza Accord with the U.S. Further, he tempers expectations on AI's economic impact, analyzing challenges in productivity forecasting and government spending's role in GDP measurement. Insightful and provocative, his views illuminate today's complex geopolitical landscape.
55:36

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • The podcast discusses the shifting dynamics in US-Europe relations, emphasizing Europe's increasing need for self-defense and reduced reliance on America.
  • It evaluates China's new investment strategy, moving from the Belt and Road Initiative to direct foreign investment in medium-income countries.

Deep dives

America's Evolving Role in Europe

The conversation addresses the shifting dynamics between America and Europe, particularly regarding defense and economic responsibilities. After World War II, the United States positioned European nations as key allies in maintaining the global balance of power against communism but has increasingly questioned its commitment to defend Europe as the threats evolve. With the rise of China and a perceived diminished threat from Russia, some argue that Europe should take on more self-defense responsibilities. This evolution highlights the complexities of historical alliances and the changing geopolitical landscape, suggesting that the dependency established during the Cold War may hinder Europe's ability to defend itself effectively.

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