Why Companies Locate, and How to Reform Defense Procurement

A friend sent me a link to this video of an interview with Palmer Luckey, the founder of Anduril Industries, whose company is about to invest $1 billion in Ohio. Anduril manufactures munitions and other defense-related hardware. Luckey talks about the fact that no one goes to a state like California, once the main hub of defense procurement, and he explains what drew his company to Ohio. At one level, the lesson is obvious: red states like Ohio attract business, blue states like California and Minnesota repel business. Especially when the business is vital to the national defense.

But there is more to the interview than that. For one thing, Palmer Luckey may look a bit eccentric, but he obviously is a very smart guy. I enjoy listening to really smart people talk, especially when, like Luckey, they are patriots.

The interview is also worth listening to for what Luckey says about Pete Hegseth’s nomination as Secretary of Defense. The interview was recorded before Pete’s confirmation, but here is a hint: Luckey appreciates a fellow “unqualified” rebel. That discussion starts at around 11:20:

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