Trump’s “State Capitalism”

It would be communism under any other dictator

Friends,

If “state capitalism” were proposed by Democrats or progressives, it would be considered socialism or communism. Done by a neofascist president — as chronicled by the The Wall Street Journal — it’s simply considered inefficient (as the Journal concludes).

But Trump’s state capitalism is already large and growing, and it’s profoundly altering what we once thought of as the private sector. Consider what Trump has done in recent weeks:

• Allowed Nvidia and Advanced Micro Devices to license artificial intelligence chips to China on condition they pay the United States 15 percent of the money they make.

• Demanded that Intel’s CEO resign (the CEO met with Trump yesterday to plead his case).

• Proposed that the Defense Department take a 15 percent stake in MP Materials, which mines critical minerals.

• Allowed Nippon Steel to take over U.S. Steel on condition that Nippon pay a “golden share” of the proceeds to Washington.

• Reserved the right to personally direct some $1.5 trillion of promised investment from America’s trading partners into the United States.

Never before in peacetime has the United States owned so many critical businesses. Never since World War II has the American public owned as much of the private sector.

Karl Marx might have been thrilled. Is the proletariat finally becoming the bourgeoisie, owning the means of production? Not a chance.

It’s unclear what the “United States” means when the deals Trump has struck give the United States ownership rights in corporations, but it’s certainly not the people.

How do America’s ownership rights get exercised? By whom? Who holds the equity, and where is it held? It appears that all this is up to the whims of Trump.

In reality, Trump’s state capitalism is just another part of Trump’s growing fascist state, extending his personal arbitrary control into what had been the private sector of the U.S. economy.

Recall that in Trump’s first term, CEOs spoke out when they disagreed with his policies on immigration and trade. After his bigoted “you had some very fine people on both sides” response to the violence in Charlottesville, CEOs resigned from his business advisory panels. After he orchestrated an attempted coup in 2021, they shunned him.

Now, CEOs are showering him with donations and praise. They can’t kiss his derriere enough. Jeff Bezos won’t run editorials critical of Trump in his Washington Post. CBS won’t allow “60 Minutes” or Stephen Colbert to oppose him (when Colbert’s contract runs out). The bros of Silicon Valley don’t dare say a word against him (look what happened to Musk).

As with other aspects of Trump fascism, Trump has extended his power by exploiting greed and fear.

Much of the public is playing along because he has also tapped into a deep vein of distrust in the system we previously had. American free-market capitalism has done wonderfully well for a few at the top, but most working families are less secure than in living memory, and their real (inflation-adjusted) wages have barely risen for decades.

At least since the bailout of Wall Street, most Americans have concluded that the economic game is rigged against them — and they’re right. So when Trump promised he was on their side, they believed him. (He wasn’t, of course.)

In addition, China is eating our lunch in what are considered the industries of the future — solar cells, semiconductors, batteries, super-computers, and AI — creating another opening for Trump to assert power over the private sector by arguing that national security requires it.

Rubbish. Several of the deals noted above are likely to compromise national security.

Trump’s state capitalism has nothing whatever to do with public ownership, socialism, helping the working class, or improving national security.

It’s all about centralizing ever more control over America in the Oval Office. It’s simply another power grab by Trump — just like his usurpation of Congress’s authority over spending and tariffs, and his new threat to occupy Washington, D.C., with federal troops.

Make no mistake. Trump’s ever-increasing power is an ever-growing threat to the rule of law and democracy.

This is what fascism looks like.