For decades, governments have promoted the idea of liberalism and free market, the complete separation of the private from the public sector and the government and have been criticizing China or the countries of the former “Eastern Bloc” for state interventionism and state control.
Then came the second government, and as its latest moves show, such as the acquisition of a share of the Giant of Technology and Intel microprocessors, nothing will be the same “in the land of free and in the brave home”.
Trump’s government is thinking of shares in defense companies
This development, that is, the acquisition – through the aids that the Intel had brought to the Intel by the Biden government as part of the reinforcement of the industry against Chinese technology companies – about 10% of the company on Friday by the US State, caused a de facto respectively, but ” And to other companies.
For example, earlier today, Trump’s Commerce Minister, Howard Latnik, in an interview with CNBC, clearly said that the government is considering gaining shares in defense companies and others with which it is working with. As the Pentagon leadership has argued, he is already considering taking share of companies such as Lockheed Martin Corp, Boeing Co and Palantir Technologies Inc, which are receiving large aid packages from the government while also having a … customer.
As Latnik pointed out in his statements: “There must be a lot of discussions on how to finance our markets in war material. There is a huge debate about defense. Lockheed Martin derives 97% of its revenue from the US government. It is essentially a US government arm, “he added. Following Lutnick’s comments, Lockheed’s shares rose 1.1%, while Boeing rose about 0.7%and Palantir dropped about 1%.
Latnik: “If there is a need, we change the rules”
But the Trump Commerce Minister did not stay there. According to Latnik, all companies seeking federal aid must be prepared to work with President Trump. As he pointed out: “If a company addresses the US government of America and say: We need your help, we want to change everything … then I think this is a matter for the Managing Director and the President of the United States and he will decide whether to hear them.” This statement was essentially a reference to the White House intervention and the agreement with the NVIDIA and AMD microprocessor manufacturers to receive 15% of the revenue from sales to China microprocessors previously banned.
As Latnik pointed out: “Since we add fundamental value to your business, I think it is fair for Donald Trump to think of the American people.”
‘Fools’ those who criticize the acquisition in Intel
These statements come just 24 hours after Donald Trump’s positions that he wants to increase US government’s investment in healthy US companies, despite warnings and criticisms that such a move could limit corporate strategy and flexibility.
As he wrote in defense of the deal with Intel: “I didn’t pay anything for Intel, it is worth around $ 11 billion. DOLLAR. Everything goes to the US. Why do some “stupid” people are unhappy with it? I will make such agreements for our country all day. I will also help those companies that make such lucrative deals with the United States. I like to see the price of their stock rise, making the US as rich. More jobs for America !!! Who wouldn’t want to make such agreements? “
Conservative Republicans
The answer to the Trump question is … the conservative Republican politicians and economists. According to critics of the agreement with Intel, this move is another step towards the “socialism” that undermines the free market and creates a precedent that democrats could exploit if they return to power. The other criticism is on the … profit that the company will have by this decision and whether Intel will … suffer from partial federal property, such as the US prevailing view of state -owned businesses in China, Russia and other countries.
Indicatively, the statements by North Carolina Senator Tom Tilis are reported that he feels “uncomfortable” for the use of Federal power by Trump in the exercise of influence on decision -making not only in Intel but also to other large companies that Its commitment to the United States to $ 600 billion.
“I don’t care if it’s a dollar or a billion dollars,” CBS reporter Major Garrett told Tilis. As he pointed out: “This is starting to look like a semi -governmental business but the USSR. I do not believe that the US government should choose winners and losers. “
A similar position was also made by the Rebubican Senator of Kentucky Rand Paul who, after describing the acquisition as a “awful idea” in a post in the social media, stressed: “If socialism is the occupation of the media by the government, wouldn’t it be a government?”
Political analysts in the US estimate that when Congress begins its work after the summer closure, reactions to these movements will take the form of an avalanche, without, of course, that they have the power to resist Donald Trump’s politics and decisions.
Positive… Bernie Sanders
The move with Intel, but also in general the adoption of such an attitude overall by the Trump government, has also found a supporter, but on the other hand the political spectrum.
The reason for Bernie Sanders, the Vermont senator who identifies himself as a Democratic Socialist, who said: “I am glad that the Trump government agrees with the amendment I proposed three years ago to the chips law. No. Taxpayers should not provide billions of dollars to corporate welfare to large, profitable companies such as Intel without receiving anything in return. If microchip companies make a profit from the generous grants they receive from the federal government, America’s taxpayers have the right to a reasonable return on this investment. “
