Beyond the ivory tower: Detroit's AI advantage over Boston

In his guest essay published in the New York Times, "The 1970s Gave Us Industrial Decline. AI Could Bring Something Worse," Dr. Carl Benedikt Frey makes some compelling points.

Sadly, his perspective is too myopic and focused on the immediate, especially his commentary on Boston versus Detroit.

Boston has Harvard and MIT; of course, it should be winning in the global knowledge economy. But here are three reasons why Detroit is better positioned than Boston in the long run:

1) Manufacturing expertise meets AI implementation - Detroit has deep-rooted manufacturing expertise and established supply chains. For AI to be successful at scale, it needs to be built and deployed in physical systems. Detroit knows how to build, manufacture, and scale production—critical capabilities as AI transitions from research labs to real-world applications in everything from autonomous vehicles to smart manufacturing systems.

2) Lower cost structure enables innovation - Detroit offers significantly lower real estate costs for both commercial space and employee housing compared to Boston's premium market. These lower costs allow for greater risk-taking and innovation by freeing up capital that would otherwise go to overhead, enabling companies to invest more in R&D and experimentation.

3) Strategic position in a massive regional economy - Detroit's location in the Global Great Lakes provides excellent access to Canadian markets and the industrial heartland of the Midwest. Detroit sits at the heart of the Global Great Lakes economy, which collectively represents an economic powerhouse larger than Germany's entire GDP.

-Marc

This is how Putin operates...

During a 2007 meeting in Sochi, former German Chancellor Angela Merkel revealed in her memoir how Russian President Vladimir Putin deliberately used his Labrador to intimidate her, despite knowing about her fear of dogs.

Merkel described the striking account of this diplomatic power play in her memoir. She recounted how Putin allowed his black Labrador, Konni, to approach her during a photo opportunity, even though her fear of dogs had been previously communicated to Russian officials.

The incident illustrates Putin's calculated approach to psychological manipulation in diplomatic settings.

In her memoir, she wrote: "I could tell from Putin's facial expressions that he was enjoying the situation."

This incident demonstrates how authoritarian leaders weaponize personal information to gain a psychological advantage. Putin's deliberate use of Merkel's known phobia shows calculated manipulation designed to create discomfort and establish dominance before substantive discussions even begin.

The non-verbal message Putin sent was clear: "I know your weakness and I'm willing to exploit it."

Imagine how he handles Trump, someone Putin knows who is trying to impress him, and be his best friend.

+ From June 2013: @realDonaldTrump: Do you think Putin will be going to The Miss Universe Pageant in November in Moscow - if so, will he become my new best friend? 

-Marc

Midterms, tariffs, and the Iowa State Fair

The Iowa State Fair has long served as a crucial stop for presidential hopefuls and political advocates using the all-American gathering to connect with voters in an informal, relaxed setting. The tradition dates back to the early 20th century, but it became more significant after the Iowa Caucuses became the first major nominating contest in the nation. The fair's famous "soapbox" stage provides an opportunity for candidates to address crowds and generate media attention, making it an essential part of any campaign's strategy in the state.

Erik Wasson of Bloomberg reports that Representative Zach Nunn (R-IA-03) is utilizing the fair for political purposes. Nunn is one of the nation's most vulnerable incumbents and plans to use the state fair as a backdrop to make his case for re-election. Economic issues like Trump's tariff disputes with countries that buy much of Iowa's agricultural products will be top of mind for voters who will decide his fate.

Trump's trade policies and threatened high tariffs on Chinese imports have prompted Chinese buyers to look elsewhere for agricultural products, particularly soybeans from Brazil. Iowa is the nation's second-largest producer of soybeans, after Illinois.

Staged and scripted fair appearances have another upside: they put politicians in front of constituents while allowing them to avoid town halls, which have become fraught for Republicans who have been confronted by constituents angry about healthcare cuts and other policy changes.

Candidates on both sides admit the state of Iowa's economy will probably be the most important factor in the midterms, and that could ultimately determine which party controls the House.

-Marc