The U.S. government now holds equity stakes in up to 30 companies across a wide range of industries
On Thursday, September 24, several Democratic Socialists in the U.S. were arrested during protests outside UN headquarters. The militant presence of this left-wing group, as well as their spectacular performance in the primaries, has irritated U.S. President Donald Trump. Over the course of the summer, he invoked communism 81 times in two weeks, calling them “hard-line, atheist communists,” while describing communism as a form of “cancer.”
Ironically, however, Donald Trump has engaged in an unprecedented control of the means of production, a practice also found in communist regimes.
ΣΧΕΤΙΚΑ ΑΡΘΡΑ
“If Trump’s shift toward state capitalism last year seemed alarming—and it was—the situation has since worsened,” notes the American magazine Foreign Policy.
Indeed, the U.S. government now holds equity stakes in up to 30 companies across a wide range of industries.
What began with a “golden share” in U.S. Steel has evolved into the government taking control of vast segments of the economy, the magazine reports.
Recently, Trump has exerted intense pressure on oil companies such as ExxonMobil and Chevron regarding their profit margins in refining, as the economic cost of the war with Iran has led to higher gasoline prices
At the same time, Trump continues to usurp Congress’s taxing powers in order to raise import tariffs that burden American consumers.
“Some unprecedented economic changes are taking place, and no one is talking about them,” said Todd DeHaven, an analyst at the Cato Institute. “Because it’s driven by one man’s personal whims, there’s no plan or strategy. It changes from day to day.”
Trump’s sweeping intervention in industry has focused, among other sectors, on rare earths, mining, metals, and semiconductors.
“This is a striking move for a nominally Republican president, coming from a party that has long embraced free-market values,” the magazine notes.
What Sets Trump Apart
Government intervention in certain sectors of the economy is considered important in some areas where government capital injections, expertise, or support are needed. For example, the shipbuilding industry was a priority for the Trump administration until it ceased to be one.
Semiconductors are another critical sector that, in most cases, requires government support. Taiwan’s world-leading microchip industry developed thanks to government generosity, as did—for a time—the U.S. semiconductor sector.
However, as the American magazine adds, there is a significant difference between what Trump is doing and what other countries are doing.
While other countries are trying to address the sudden vulnerability of supply chains or the needs of an emerging industry, the Trump administration has turned state capitalism into a source of revenue. The number of tariff exemptions and waivers, as well as instances of special treatment for certain companies, has increased.
“The narrative is always: ‘It’s just about critical industries.’ There’s no elaborate plan here. It’s about someone who wants to exert control over the economy,” DeHaven said.
Source: in.gr
