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The answer, as usual, is more capitalism!
When it comes to defense, there are some green shoots with Anduril which is shaking up the socialist-statist defense industry. And of course, SpaceX and StarLink fit this mold as well. New companies will emerge, IF they are allowed to make a profit and not regulated to death like the car companies and US steel.
We need to reduce regulations and allow companies to compete. I'm okay with the Big 3 going out of business as long as we have something to replace them. But we might need tariffs for awhile since China has such a huge head start in nearly all areas.
Unfortunately, This isn't the slam dunk you, or a lot of other smart people, want it to be.
Anduril is learning, now, what it took Lockheed, Raytheon et al 40+ years of pain to understand. The U.S. Military is an awful customer, congress is dumb, and the Federal Acquisition Regulation (specifically Cost-Plus contracts) really fucks up your business model and investor's thesis. I applaud their effort, but there's an iceberg just yonder.
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