Cato Podcast High-Stakes Intel
Aug 28, 2025
Norbert Michel, an expert on money and finance, and Justin Logan, a defense and foreign affairs analyst, dive into the implications of Trump’s CHIPS Act and its potential for state capitalism. They debate how this role of government in the economy may threaten American liberty while discussing energy behind U.S. diplomatic efforts in Ukraine. The conversation reveals the complexities of military involvement abroad and critiques the risks of cronyism in politics, all while trying to find silver linings in a challenging policy landscape.
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State Stakes Threaten Market Incentives
- Government equity stakes blur the line between state power and private enterprise and risk politicizing corporate decisions.
- Norbert Michel warns this creates opportunities for abuse and weakens market incentives for firms to compete.
Cronyism Reorients Corporate Behavior
- Firm-specific government interventions create political incentives that distort long-term business decisions.
- Ryan Bourne says companies will shift behavior to appease the Oval Office rather than focus on value creation.
Keep Politicians Out Of Corporate Management
- Avoid importing sovereign-wealth-style interventions into a developed economy like the U.S. because justification differs from underdeveloped states.
- Norbert Michel advises keeping politicians out of running firms and preserving market-driven management.
