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Colossus (Invest Like the Best / Business Breakdowns)Podcast8 Sep 2026Source: colossus.comHost: Patrick O'Shaughnessy

Walter Russell Mead - How America Keeps Winning - [Invest Like the Best, EP.490]

In plain words

This interview features historian Walter Mead arguing that despite internal chaos, America keeps winning through information revolution and maritime trade advantages. He says Trump turns lying and drama into power, but warns it's not sustainable. Mead is bullish on India as an overlooked rising power, flags China as a risk for reducing global dependency to avoid being cut off in conflict, and notes Japan is rearming as a key variable.

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Walter Russell Mead, in his appearance on the Invest Like the Best program, explores how the United States can sustain its global leadership. He outlines a five-step strategic playbook that has historically enabled the Netherlands, Britain, and the United States to become global hegemons, and argues

~11 min full read · 10 sections
Deep Analysis

Walter Russell Mead - How America Keeps Winning - [Invest Like the Best, EP.490]

At a Glance

Walter Russell Mead is a columnist for The Wall Street Journal and author of Special Providence and God and Gold, who has spent decades studying the historical logic of America's global leadership. The core theme of this episode: The United States is experiencing a peculiar coexistence of a "dynamic nation and a collapsing world system" — the institutional network built after World War II is unraveling, yet America itself has grown stronger due to the information revolution. Mead presents a central judgment spanning 300 years: from the Netherlands to Britain to the United States, the maritime commercial liberal order has consistently defeated centralized continental powers, and this pattern is now replaying in the U.S.-China competition.


I. Trump’s Methodology of Power: Converting Fame into Power

Mead argues that Trump has uncovered a core secret of contemporary power—turning fame into power, turning drama into power, while rendering himself entirely immune to conventional constraints.

  • The marginal cost of lying approaches zero: Mead points out, “If you lie enough, the marginal cost of your 10,000th lie is zero, while the marginal cost of the 1st, 2nd, and 3rd lies is very high.” All conventional constraints on political figures—reputation, shame—do not apply to Trump.
  • Industrial-scale amplification of the Clinton precedent: Mead cites Clinton’s strategy during the Lewinsky scandal—“Shame only exists if you allow it to exist”—and claims Trump has “deployed it on an industrial scale.”
  • Global monopoly on attention: “Since the dawn of humanity, no living person has occupied as much of the human species’ bandwidth as Donald Trump.” Whether loved or hated, Trump remains the center of global discourse. Mead draws an analogy to Napoleon: “In what he does, he is as good as Napoleon was in what he did.”

Mead also notes that this does not guarantee a “happy ending”: Napoleon was defeated at Waterloo and exiled.


II. The "Five-Step Script" for 300 Years of Victory: Maritime Liberal Order vs. Continental Centralization

Mead proposes a core historical pattern spanning 300 years: from the United Provinces (Netherlands) to the UK to the US, the maritime commercial liberal order has consistently defeated centralized continental powers. He summarizes this as a "five-step plan for global dominance":

Step Content Historical Example
Step One Open domestic society 17th-century Netherlands: tolerance of religious dissenters, scientists, and immigrants; Galileo would not have been imprisoned in the Netherlands
Step Two Global trade The Netherlands had 10,000 oceangoing vessels; wealth accumulation—Dutch paintings depict items from China, Turkey, and Brazil
Step Three Invite others into the system 19th-century British free trade: the British Navy fought pirates for everyone, including the US, which became a beneficiary
Step Four Make participants dependent on the system Germany discovered in WWI: after integrating into the global system, it could not access Argentine grain or Malayan rubber during wartime
Step Five Cut off the opponent's connection to the system This is one of the key reasons maritime powers win wars

Mead maps this pattern onto US-China competition: China is attempting to reduce its dependence on the global economy through solar energy, hydropower, and coal reserves—"they are trying to avoid the trap of relying on the global economy." The core logic of China's energy policy is: to be able to fight a prolonged war in the worst-case scenario of a US-China conflict.


III. The Four Schools of U.S. Foreign Policy and the Rise of the "Tech Hamiltonian School"

Mead categorizes the traditions of U.S. foreign policy into four types and notes that the current Trump coalition is "a mix of Jeffersonians (isolationists) and Jacksonians (hawks)."

School Representative Figure Core Philosophy
Hamiltonian George H.W. Bush A strong capitalist economy + global trade = national power; the government should help U.S. companies succeed
Wilsonian Clinton Consensus Promote democracy and international institutions; democracies do not fight each other
Jeffersonian J.D. Vance Avoid involvement in overseas affairs to protect domestic liberties; otherwise, the government becomes large, secretive, and high-taxing
Jacksonian Marco Rubio Peaceful like a Jeffersonian; when attacked, "eliminate enemies like rats"

Mead argues that the "Tech Hamiltonian" school is an emerging key force:

  • "Mutual discovery" between tech and government: In the 1990s, tech companies called themselves "global corporations" with no connection to Washington; today, technology has become the core battleground of great-power competition.
  • Fundamentally different economic interests: Traditional multinationals need free trade, open markets, and cheap immigrant labor; tech companies need supply chain security, intellectual property protection, and patriotic employees ("your colleague will report you for selling IP to China").
  • "Technology is being renationalized": Mead considers this one of the most important geopolitical changes of the 21st century.

IV. The Information Revolution: The Art of Riding the Wild Horse and the Collapse of the Three Classes

Mead argues that since the 17th century, the key to power in the modern world has been "which countries can most effectively develop and harness the power of new technologies without exploding internally due to social pressures."

The Historical Pattern of Riding the Wild Horse

  • Industrial Revolution: Britain was the first to tame it, dominating for 150 years
  • Information Revolution: The U.S. currently leads but faces internal turmoil
  • Key Analogy: The U.S. historically absorbed technological shocks through a "property-owning society" (independent farmers → suburban single-family homes); today, it needs to find a new form of "ownership" to absorb the AI shock

The Collapse of America's Three Classes

Mead points out that the stable post-WWII American society was composed of three classes, all of which are now in disarray:

Class Post-WWII Form Current State
Industrial Working Class Stable jobs, unions, pragmatic politics Collapsed
Business Class Professional managers, public companies, regulated monopolies Collapsed
Expert/Technocratic Class Decision-makers guided by peer-reviewed social sciences Collapsed

Mead argues that the "incoherence" within the U.S. is undermining any possibility of global stability — because the U.S. remains "the only potential pillar of global stability and organization."


V. The Erosion of Deterrence: The Middle East, Ukraine, and Taiwan

Mead argues that the erosion of deterrence is the most significant geopolitical issue today—"What you want is not to help Ukraine win the war, but to make Russia find the consequences of attacking Ukraine so terrible that it is simply not worth doing."

The Middle East: Iran and the Strait of Hormuz

  • Collapse of Arab nationalism: Following the successive collapses of Iraq and Syria, Iran, as a non-Arab, non-Sunni power, has filled the vacuum.
  • Consequences of deterrence failure: Iran can use drones to attack desalination plants in Gulf states, rendering cities uninhabitable—"As long as this is the case, foreign powers will not make large-scale investments in the Gulf."
  • Mead's assessment: "History does not give us a choice. Either we stop Iran ourselves, or Iran maintains its hegemony over Middle Eastern oil resources."

Ukraine: A Fundamental Shift in the Nature of War

Mead visited Ukraine twice and observed fundamental changes in the nature of warfare:

  • Drones dominate the battlefield: "They no longer treat gunshot wounds—it's all drones."
  • Casualty evacuation becomes the hardest problem: One soldier spent 63 days waiting to be evacuated after being wounded.
  • A unique challenge for the U.S.: "As the country with the most equipment, we are actually the most vulnerable to technological change—if tanks become useless, that is a bigger problem for us than for those who have already invented tank killers."
  • "A continuous military revolution": No longer the "one-time revolution in military affairs" discussed in the 1990s, but a transformation occurring every six months.

Taiwan: The Japan Factor

  • Mead believes China will not easily invade but will adopt gray-zone actions such as a "soft blockade."
  • Key new variable: Japan has "awakened," viewing China's control over Taiwan as a direct threat to Japan's own independence.
  • Japan is currently: increasing defense spending, reshaping strategic doctrine, and adjusting its culture to adapt to the new environment.
  • Mead's observation: "Historically, when Japan truly feels threatened, it has been quite adept at changing course."

6. India: The Overlooked Rising Power

Mead argues that India is the most noteworthy source of power besides China and the U.S., and its worldview differs from both.

  • Indian Foreign Minister S. Jaishankar stated, "China is a revisionist power, India is a reformist power."
  • India is dissatisfied with the status quo: With a population of 1.4 billion and nuclear weapons, it has the same voting power in the UN General Assembly as Liechtenstein.
  • The information revolution drives civilizational divergence: The Industrial Revolution forced societies to converge (all needed factories, railways, airports), while the information revolution allows nations to use their own cultures as platforms—"Turkey becomes more Turkish, India becomes more Indian, Japan becomes more Japanese."

Mentioned Positions

Position Analyst Stance Key Data
China Risk Warning (Primary Competitor) In 1980, India's GDP was approximately 60-65% of China's; today it is about 17%
India Bullish (Overlooked Rising Power) 1.4 billion population, nuclear weapons, 86,000 grassroots groups meeting weekly
Japan Neutral Observation (Key Variable) Increasing defense spending, reshaping strategic doctrine
Israel Neutral Observation (Too Small to Counter Iranian Hegemony)
Iran Risk Warning (Threat from Deterrence Gap) Can threaten desalination plants in Gulf states
Ukraine Neutral Observation (Case Study of Changing Warfare) One wounded soldier took 63 days to be evacuated

Judgments Worth Remembering

1. Mead believes Trump's core innovation is "reducing the marginal cost of shame to zero" — Clinton discovered that shame only exists when permitted; Trump industrialized its deployment, shedding all conventional political constraints.

2. "From the Netherlands to Britain to the United States, 10 letters (UP→UK→US) encapsulate 300 years of modern history" — The pattern of the maritime commercial liberal order consistently defeating centralized continental powers is being reenacted in the US-China competition.

3. Mead argues the true logic of China's energy policy is "avoiding the trap of dependence on the global economy" — Solar power, hydropower, and coal reserves are all designed to sustain a long-term conflict in the worst-case scenario of US-China confrontation.

4. The rise of the "Tech Hamiltonian faction" is one of the most important geopolitical changes of the 21st century — The economic interests of tech companies (supply chain security, IP protection, employee patriotism) fundamentally differ from those of traditional multinationals (free trade, open markets, cheap immigrant labor).

5. Mead believes the erosion of deterrence is the biggest current geopolitical issue — "What you want is not to help Ukraine win, but to make Russia feel that the consequences of an attack are so terrible that it's not worth doing." Any solution short of deterrence involves a long, costly, and divisive war.

6. "Continuous military revolution" has replaced the "one-time revolution in military affairs" — The Ukraine war changes every six months; tanks and rifles may become as obsolete as cavalry charges and swords; the US, as the country with the most equipment, is most vulnerable to technological change.

7. Mead argues the information revolution drives civilizational divergence rather than convergence — The industrial revolution forced societies to converge (all needed factories and railways); the information revolution allows countries to use their own cultures as platforms, making Turkey more Turkish, India more Indian, and Japan more Japanese.

8. Mead's optimism about the US stems from "the abundance brought by the information revolution can solve seemingly intractable problems" — The healthcare cost revolution, federal deficits, and social security issues could all become solvable through technological breakthroughs; "the biggest problem is that abundance comes too fast, and we don't know how to manage it."