Freakonomics Radio

676. Has America Lost the Plot?

with Fareed Zakaria
5 Jun 2026 11 min read 1h 12m

Fareed Zakaria reassesses his prediction that Trump's second term would be constrained by institutions—it hasn't been. Instead, Trump has surrounded himself with loyalists and is pursuing chaotic, improvised foreign policy, most notably a joint strike on Iran that Zakaria believes represents a fundamental strategic error rooted in American imperial overreach and misunderstanding of nationalism.

Fareed Zakaria
“I'd say was basically wrong.”
Zakaria admits his earlier prediction that Trump's second term would be constrained by checks and balances proved incorrect
▶ 1:42
Fareed Zakaria
“Regime change by jazz improvisation is how one of your recent guests put it.”
Describing Trump's improvised, unpredictable approach to foreign policy in his second term
▶ 5:00
Fareed Zakaria
“BB Netanyahu understood how to play Trump and told him to the effect, 47 years American presidents have tolerated Iran. You can be the one to liberate it. And Trump fell for all this nonsense.”
Explaining how Netanyahu convinced Trump to pursue military action against Iran
▶ 7:58
Fareed Zakaria
“the fundamental miscalculation that the United States has made just like it made in Vietnam, which is you may be up against a much weaker party. But if they are willing to take more pain than you are, ultimately they will win in the sense that you can't compel them.”
Zakaria explains why Iran has been able to resist U.S. military pressure despite being militarily inferior
▶ 10:41
Fareed Zakaria
“I think that the reports of the death of globalization are vastly exaggerated.”
Zakaria argues that while Trump pursues protectionism, the rest of the world is actually embracing more free trade
▶ 32:29
Fareed Zakaria is a foreign policy expert, political scientist, and longtime member of the Council on Foreign Relations. He works at CNN, writes a column for the Washington Post, and is the author of several books including Age of Revolutions: Progress and Backlash from 1600 to the Present. This is his third appearance on Freakonomics Radio.
1
Globalization is reglobalizing, not dying Despite Trump making the U.S. the most protectionist advanced economy, the rest of the world is reducing tariffs with each other (EU-India, Canada-China, Europe-Latin America). This 'reglobalization' happened because supply chain disruption from COVID and energy shocks proved globalization's resilience—firms merely diversified to Vietnam, India, and Mexico instead of decoupling.
2
Asymmetric threats reshape global energy economics Iran's most effective weapons weren't expensive ballistic missiles but $15,000-$30,000 drones. This demonstrates that cheap asymmetric threats can disrupt tanker routes carrying fossil fuels, creating a permanent risk premium on liquid energy transport globally—affecting economics far beyond the Persian Gulf.
3
UAE and Saudi Arabia diverging on alignment strategy The UAE, which generates most revenue from financial services rather than oil, can afford to leave OPEC and cooperate with Israel while controlling public dissent through subsidies. Saudi Arabia, with 30 million people and oil-dependent revenue, needs regional stability and Palestinian concessions to normalize with Israel—a gap Netanyahu's rightward shift may make impossible to bridge.