Consider This from NPR Should the government be in the business of business?
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Aug 27, 2025 The podcast dives into President Trump's controversial decision for the U.S. government to take a 10% stake in Intel. Experts debate the implications of government ownership on capitalism and market dynamics. Concerns arise about potential corporate interference and the consequences for the chip market. The discussion also highlights taxpayer funding for firms like Intel, weighing the pros and cons of government involvement in private business, especially outside of crisis situations.
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Government Becomes Shareholder In Intel
- The Trump administration bought a 10% stake in Intel tied to Chips Act grants and DoD funding.
- This marks an unusual move toward federal ownership and oversight of private companies by a Republican White House.
Equity Stakes Are Highly Aggressive
- Michael Strain calls the Intel stake unprecedented outside of crisis periods and unusually aggressive government intervention.
- He notes targeted loans or subsidies would be less intrusive than equity ownership.
Political Ownership Distorts Corporate Decisions
- Strain warns government ownership can block politically painful but economically necessary actions like plant closures.
- That political pressure can hamper firm competitiveness and harm customers.