The Strategy Page: Government Wrecking Ball Edition

At a glance:

1. An Unhealthy America
2. Podcast: Diary of a CEO – The Insulin & Glucose Doctor
3. Innovation in the U.S. Military
4. Depressed Agriculture Sector
5. How Can the Government Make Housing More Affordable?
6. One of The Greatest Stories in the History of Sports

Donald Trump has acted swiftly to execute his agenda. He’s used executive orders as a wrecking ball to demolish essential government functions, often without concrete alternative measures.

This is in part because Congress has stalled. Members haven’t agreed on how to use budget reconciliation to address border security, drilling, tax policy, etc.

Many of Trump’s actions, including tariffs, appear to be posturing to justify tax cuts (or extend ones already in place). All this is set against a backdrop where Congress has not raised the spending limit. Treasuries and equities have buckled in recent weeks–a clear sign that markets nervously await some semblance of order.

An Unhealthy America

Among the last of Trump’s appointments to be confirmed, Robert Kennedy Jr. has yet to frame a series of priorities for Health and Human Services. He will oversee $2 trillion of the U.S. budget including National Institutes of Health, the Centers for Disease Control and Prevention, the U.S. Food and Drug Administration, and the Centers for Medicare and Medicaid Services.

Clearly the wrecking ball is coming. In his failed presidential campaign, RFK Jr. declared war on the U.S. drug and food establishment. While his statements on vaccines garnered most of the headlines, he intends to revamp everything from ingredient labels to the food pyramid, which he believes promotes an unhealthy America.

While everyone may not agree with his approach, it’s hard to argue that the U.S. has built a failing food and drug infrastructure. America has rampant issues with drug abuse, depression, obesity, and healthcare costs, in part perpetuated by an industry that promotes starchy, sugary, caloric foods. Fresh fruits and vegetables represent about 10-15% of SKUs in U.S. grocery stores–about half of what you find in Europe.

By the way, this is a strategy blog, and health advice is not our forte. But if you’re interested in wellness and healthy living, hearing Dr. Benjamin Bikman’s podcast episode on Diary of a CEO is a must, as it illuminates why our system is broken. Dr. Bikman challenges the healthcare establishment’s assumptions, unveiling causes of cancer, diabetes, and Alzheimer’s.

Podcast: Diary of a CEO – The Insulin & Glucose Doctor

Innovation in the U.S. Military

Recent events in Ukraine suggest Russians and other adversaries are using guerrilla warfare including sophisticated drones, to combat more traditional weapons with which U.S. allies command an advantage.

The focus has been on Trump and Musk’s bizarre tactics on job cuts and slashing budgets. However, two things can be true at once.

The U.S. military-defense complex is ripe for innovation. Today, 5 “primes” consume 86% of the defense budget. Cost-plus contracts constrain innovation and promote overruns.? SpaceX is currying cargo to space for one-tenth the cost the space program did from 1960 to 2010. Musk is proposing more AI, autonomy, and lower costs to an industry that needs a makeover.

Depressed Agriculture Sector

Net farm income is expected to drop 6% to $129 billion in 2025–the third year in a row that farmers will take it in the shorts. To boot, farmers’ biggest export markets are China, Canada and Mexico, the same countries that could be engaging in a tit for tat trade war with the United States.

The sector could also be disproportionately impacted by higher costs as a result of more restrictive immigration policy, and crackdowns on employers hiring undocumented workers. It’s estimated that 13% of agriculture workers are undocumented, lagging only construction.

The bird flu is already wreaking havoc on farms, and other strains and pandemics are likely.

How Can the Government Make Housing More Affordable?

Another idea surfaced by Trump (and even the Biden administration) is to divert federal lands to build smart cities. The rub? Most federal land is in remote areas in the West, void of access to existing infrastructure, economic opportunities, and cultural centers.

Yet there are over 217,000 acres of public land in U.S. cities where entire subdivisions could be built from scratch in an attempt to stem the tide. It’s been done before. In October, the U.S. government sold land in Clark County, Nevada, for $100 an acre in an effort to support low-income housing.

While real estate markets are temporary, inventory remains very low, and even a 50-basis-point rate cut (about all we could dream for in 2025) is unlikely to bring much inventory to market.?In this case, a land subsidy in the sprawling West makes sense.

One of The Greatest Stories in the History of Sports

During this gap in our sports calendar between the Super Bowl and March Madness, we offer a bit of nostalgia. One of the greatest upsets in sports history wasn’t a result of athleticism, but through the power of the mind. ?

In 1974, Muhammad Ali fought George Forman in Kinshasa, Zaire (now the Democratic Republic of the Congo). Known as The Rumble in the Jungle, the heavyweight championship bout pitted 32-year-old Ali against Foreman, the reigning heavyweight champion. Foreman was a force of nature with a terrifying reputation of 40 wins (37 by knockout), including victories over Joe Frazier and Ken Norton—both of whom had beaten Ali. Foreman was considered invincible.

Ali engaged in psychological warfare. He worked the press and the local crowd. His charisma endeared him to the people of Zaire who chanted, “Ali, boma ye!” (meaning “Ali, kill him!”).

Ali taunted Foreman, calling him slow, predictable, and unintelligent in the ring. Foreman, usually calm and composed, showed signs of frustration.

When fight night arrived, the tension in the stadium was electric. Foreman came out swinging, throwing his signature devastating punches early. But Ali surprised everyone by leaning back against the ropes and letting Foreman hit him repeatedly.

This “Rope-a-Dope” strategy is a brilliant tactical move. By absorbing punishment on the ropes, Ali conserved his energy while Foreman punched himself out in the high heat and humidity. The strategy required immense toughness and discipline. Ali provoked Foreman throughout, whispering, “Is that all you got, George?”

Round after round, Foreman threw heavy punches but became visibly exhausted.

In the 8th round, Ali saw his moment. Foreman was fatigued, his punches no longer carrying the same power. Ali unleashed a lightning-fast combination, including a powerful right hook that sent Foreman staggering to the canvas. It was the first time in Foreman’s professional career that he’d been knocked out. The referee counted Foreman out, and Ali was declared the winner by knockout. Against all odds, he reclaimed the heavyweight championship.

Ali too was a force of nature, not so much physically as through the mark he made on the world–so beautifully captured in Billy Crystal’s speech at Ali’s funeral in 2016, among the most memorable eulogies we’ve ever seen:

The Strategy Experts

Marc Emmer is President and Chief Strategist & Facilitator at Optimize Inc. He is an author, speaker and consultant recognized as a thought leader throughout North America as an expert in strategic planning.