Forget Red vs. Blue. The real battle is between the Engineer and the Middleman. From the $16 prescriptions of “TrumpRx” to the “American Stack” defending digital liberty, we are witnessing the physics of efficiency colliding with the inertia of politics.
By Michael Peabody
History rarely moves in a straight line. It moves in cycles. The historians Strauss and Howe identify the current era as a “Fourth Turning.” This is a winter of civic decay where institutions calcify and the accumulated debts of the past come due. To the casual observer in January 2026, the turbulence of the last year appears to be mere chaos. To the economist, however, it is something far more functional. It is a liquidation of failed assets.
The most toxic asset on the books is the twentieth-century bureaucratic state.
President Trump’s executive orders from 2025 regarding the “American AI Technology Stack” and the aggressive actions of the Department of Government Efficiency (DOGE) are not separate initiatives. They are part of a single and ruthless equation. They represent a recognition that a nation cannot build a twenty-first-century economy on top of a nineteenth-century administrative structure.
The Stack and the Sovereign
Consider the pencil. No single person knows how to make one. It is the product of the spontaneous cooperation of thousands. It is coordinated only by the invisible hand of the market. Today the pencil has been superseded by the “American Stack.” This is the vertical integration of silicon chips, data centers, and foundational artificial intelligence that now serves as the nervous system of the global economy.
For two decades, the West allowed a rival “Chinese Stack” to gain market share. This competitor did not compete on quality or price but on state subsidy and coercion. The Chinese Stack is not a tool for commerce. It is a mechanism for control.
The “Export of the American AI Technology Stack” order is a fascinating application of state power to dismantle state obstacles. By pushing to export American code and American hardware to allies, the administration is establishing a technological containment line. If the world runs on American chips, it runs on American values. It runs on decentralization, property rights, and the rule of law.
The Marketplace of the Soul
The “Stack” is not merely about commerce. It is about the most fundamental market of all. It is about the marketplace of ideas. This brings the analysis to the quietest but perhaps most vital reform of 2025. This is the protection of religious liberty within the digital sphere.
It is vital to understand that a state which controls the algorithm controls the conscience. The “Chinese Stack” is a jealous god. It tolerates no rivals. It tracks the Uighur in Xinjiang and the Christian in Henan with the same digital ruthlessness. It is the ultimate realization of the totalitarian dream. It is a system where the internal life of the individual is subject to the external audit of the state.
The “Preventing Woke AI” order is not an imposition of right-wing orthodoxy as its critics claim. It is the opposite. It is a neutrality pact. By forbidding the federal government from purchasing or deploying AI systems that suppress “disfavored” speech, including religious speech, the administration is ensuring that the digital square remains open.
In a free society, the believer and the atheist require the freedom to compete for souls without the state putting its thumb on the scale. If the “American Stack” were to become a tool for sanitizing the internet of faith, it would not be a tool of liberty. It would be a high-tech inquisition. The orders of 2025 ensure that the “cloud” does not become a ceiling for the human spirit.
The Engineer vs The Think Tank
One cannot export agility abroad while tolerating sclerosis at home. This brings the analysis to the “Department of Government Efficiency” or DOGE.
The transformation witnessing in 2026 is not ideological. It is structural. Enter Elon Musk and the logic of the engineer. Mr. Musk does not view government as a moral crusade. He views it as a distressed engineering project with bad code.
The “DOGE” teams embedded within agencies like USAID are not debating policy. They are auditing inputs and outputs. They are asking a question that the political class considers rude but the taxpayer considers vital. “Where did the money go?”
The Nine Billion Dollar Lesson
If one wishes to understand the necessity of this “chainsaw” approach, look to the investigations in Minnesota. Prosecutors state that massive sums were siphoned off through fraudulent centers claiming to feed the poor. The aggregate of similar schemes may reach billions.
In a functional market, a company that allowed such theft would be liquidated. In the government, failure is usually met with a request for increased funding. The “Feeding Our Future” scandal was not a malfunction. It was the logical result of a system that measures compassion by how much money is spent rather than who is actually helped.
The pause on funding to these pipelines is not cruelty. It is fiduciary duty. One cannot be the custodian of the public trust while remaining incapable of protecting the public purse.
The End of the Middleman
This efficiency algorithm is also dismantling the pharmaceutical protection racket. For decades, Pharmacy Benefit Managers (PBMs) acted as toll collectors between the patient and the pill. They added no value. They merely extracted rent.
The enforcement of “Most Favored Nation” pricing and the rollout of the direct-to-consumer “TrumpRx” platform are classical economic disruptions. They bypass the bureaucracy entirely.
This is not a government handout. It is the restoration of price discovery. It is what happens when the regulatory sludge that allowed the cartel to hide the true cost of goods is removed.
The Transactional Audit
Finally, this logic extends to the empire itself. For the post-war era, the United States treated international commitments as a form of secular tithing. We sent money to global bodies with no expectation of a return.
The new doctrine is transactional. It asks what the American taxpayer is buying. If a treaty hinders innovation, subsidizes a rival, or funds an NGO that undermines American values, it is a liability. The withdrawal from such agreements is not isolationism. It is the behavior of a rational actor in a marketplace.
The Hard Truth
The world is in a Fourth Turning. The winter is cold. The wailing from the entrenched interests is loud. But it is an error to mistake the noise for destruction. It is the sound of a monopoly being broken.
Presidents change. The man in the Oval Office is temporary. But if the machinery of the state is refactored, if the “permanent” civil service is made accountable, and if the ledger is finally balanced, the transformation will outlast the term. The free lunch is over.
