American capitalism is being remade by state power
11 days ago
- #economic-policy
- #capitalism
- #industrial-policy
- The Trump administration is reshaping American capitalism by taking equity stakes in companies like Intel, signaling a shift towards state-directed capitalism.
- Capitalism comes in various forms: free-market (laissez-faire), state-guided (government supports chosen industries), and oligarchic (control by a small elite).
- Recent U.S. policies, such as the CHIPS and Science Act, reflect a hybrid model blending free-market principles with state capitalism.
- The government is not only investing in companies like Intel and MP Materials but also requiring revenue shares from chip manufacturers like Nvidia and AMD.
- This shift from incentive-based support to direct ownership represents a significant experiment in modern American capitalism.
- The U.S. is recalibrating capitalism's boundaries, with potential future interventions in energy, biotech, and AI industries.