Explaining History Podcast: 2025 in Review – The Year the Tech War Was Lost

As 2025 draws to a close, we reflect on a pivotal year that historians may one day see as the moment the world changed forever. This episode delves into the most significant geopolitical shift of our time: the American retreat from its tech and trade war with China, and the quiet acknowledgment that the battle has been lost.

Join us as we analyze the key indicators of this tipping point, from tech oligarch Peter Thiel losing confidence in America’s top chip manufacturer to the startling revelation that the vast majority of new tech startups are now built on Chinese, not American, artificial intelligence models.

We explore the deep-seated historical and economic reasons behind this shift, arguing that the West has been hamstrung for decades by its unwavering faith in neoliberalismSupply Side Economics Full Description:Supply-Side Economics posits that production (supply) is the key to economic prosperity. Proponents argue that by reducing the “burden” of taxes on the wealthy and removing regulatory barriers for corporations, investment will increase, creating jobs and expanding the economy. Key Policies: Tax Cuts: Specifically for high-income earners and corporations, under the premise that this releases capital for investment. Deregulation: Removing environmental, labor, and safety protections to lower the cost of doing business. Critical Perspective:Historical analysis suggests that supply-side policies rarely lead to the promised broad-based prosperity. Instead, they often result in massive budget deficits (starving the state of revenue) and a dramatic concentration of wealth at the top. Critics argue the “trickle-down” effect is a myth used to justify the upward redistribution of wealth.. This ideology has de-industrialized and hollowed out Western societies, leading to rampant inequality, austerity, and social decay. In contrast, we examine “neoliberalism with Chinese characteristics”—a model where the state harnesses market forces for national missions, like dominating chip fabrication, without ever ceding ultimate control to a capitalist class.

Finally, we look to the future, speculating on the consequences of this new reality: a diminished American empire, the potential fracturing of its global influence, and a world grappling with the end of the American century. What