While loudly stoking fear of communism, Trump is quietly changing US capitalism
While warning of the rise of socialism on the left, President Donald Trump is simultaneously conducting his own experiments in economic theory, putting his nationalist spin on American capitalism. The fear of socialism is built on the idea that government intervention stifles free private enterprise, which capitalists view as the bedrock of American greatness. Trump, … The post While loudly…
President Donald Trump, while warning of socialism on the left, is quietly transforming American capitalism by inserting government involvement into various markets. The administration, without congressional approval, has acquired stakes in numerous private companies, ranging from the significant investment in Intel to smaller shares in mineral, quantum computing, and semiconductor firms.
These investments, though classified as minority stakes by the administration, create a government interest in these businesses, potentially influencing market dynamics at the expense of competitors.
The administration argues these investments are not interfering in the free market, but analyst Tad DeHaven from the libertarian CATO institute warns of the potential for the government to prioritize owned companies and disadvantage competitors, both current and future.
This strategy aligns with Senator Bernie Sanders' proposal for a US sovereign wealth fund, an idea Sanders unsuccessfully pushed for during the CHIPs Act debate. The current administration is employing funding designated for semiconductor industries in a manner similar to Sanders' envisioned fund. Both Trump and Sanders seem to agree on the necessity of a sovereign wealth fund, though the administration's approach diverges from Sanders' plan to seize 50% of AI companies' stocks for social projects.
Written by urgent.news from Egypt Independent's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
