Trump said, “Our country will never be a socialist country.” Great. But now… he’s acting like a socialist!
He’s had government buy stakes in companies like Intel, Trilogy Metals, Lithium Americas…
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“Socialism technically is government ownership, or partial ownership, of the means of production,” points out economist Dan Mitchell, “And Trump is doing that!”
He warns, “I don’t trust Donald Trump to control the share correctly, but I definitely don’t trust some of the folks on the left … you’ve created this precedent of government being a senior partner sitting in the boardroom with some of these major companies. It’s going to be a disaster for the U.S. economy.”
What if the next President is AOC or Gavin Newsom?
The left now criticizes Trump’s deals.
“It’s crony capitalism,” says Governor Newsom.
“Another shakedown,” says Senator Warren.
But Obama and Biden gave taxpayer money to failing companies Solyndra!
That’s a lesson we should’ve learned.
Government handouts create the wrong incentives: company executives start chasing political favors instead of innovating.
Dan Mitchell has a better solution: “Let the weak companies go away. So the resources can go to the young new companies that are actually creating wealth.”
