The GOP's 'Capitalism' is Central Planning with MAGA Branding

Reason Magazine ^ | 10.23.2025 2:50 PM | Veronique de Rugy

[RandFan]

When House Speaker Mike Johnson (R–La.) lashed out at last weekend's "No Kings" rallies soon to arrive on Washington's National Mall, he reached for an old conservative refrain: "They hate capitalism. They hate our free enterprise system."

I am sure he's correct about some of the protesters. But the message rings hollow coming from a party leader that stands by as President Donald Trump does precisely what Johnson rightly decries: substituting political control for market choice and ruling by executive order.

Indeed, what began as a populist revolt against so-called elites has become a program of state ownership, price fixing and top-down industrial control. Take a look.

Recently, the Trump administration quietly converted CHIPS Act subsidies into an $8.9 billion equity purchase in Intel, making Washington a 10 percent owner of one of America's largest technology companies. Commerce Secretary Howard Lutnick insists "this is not socialism." That's semantics.

Socialism is government control of the means of production. When the government becomes your largest shareholder, that's a strong first step.

The Intel case offends two basic economic truths. First, no group of officials can ever know enough to guide a complex industry better than millions of private investors, engineers, and consumers spending their own money. Second, the power to "partner" with business is the power to control it.

The more political capital the government invests, the more it demands in return. It's only a matter of time until politically favored locations, suppliers, or hiring quotas shape Intel's decisions. That isn't capitalism.

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TOPICS: Chit/Chat; Conspiracy
KEYWORDS: 123oclock4oclockzot; 5yearplan; centralplanning; dnctrollfarm; doofustrump; fakefrconservs; frkookaid; magacommunism; magacult; magasocialism; magtards; multiplenicks; nevertrumping; randisconservative; randpaulsucks; randstanding; veroniquederugy

[RandFan]

Some good points here...

[montag813]

Imagine how strong Social Security would be right now if the Feds had taken 1-10% stakes in Microsoft, Apple, Google, etc. Tiny Norway’s fund is $2.5 trillion, having used oil revenues to invest in companies and funds. Social Security is a pathetic scam that gives retirees a mere pittance.

[RandFan]

Yes and they will raising the age of it. Scam.

[Bruce Campbells Chin]

Yes, there are.

[philman_36]

When the Federal government owns the raw materials, tools, and factories used to produce Intel’s chips you’ll peak my interest.

[RandFan]

You’ve always been fair minded here

[SmokingJoe]

"Recently, the Trump administration quietly converted CHIPS Act subsidies into an $8.9 billion equity purchase in Intel, making Washington a 10 percent owner of one of America's largest technology companies.”

CHIPS Act was giving $8.9 Billion tax payer dollars to Intel for free.
Why?
Trump turned that into a 10% stake in Intel, which is far better use of tax payer dollars.
I remember when Obama poured tens of billions of tax payer dollars into GM and ended up forced to write off over $10 Billion of that money because GM was too broke to pay.

[Henry Hnyellar]

Did author cover the percent of income derived from Fed Gov contracts by the likes of General Dynamics, Lockheed Martin, Northrop Grumman and other similar large companies, let alone much smaller companies the derive ALL their income from Fed Gov contracts? If not, he’s FOS and conveniently ignoring a much larger problem. Given this is (Un)Reason(able) magazine, I’m not surprised.

[SmokingJoe]

Grok:

“Yes, President Donald Trump initiated the creation of a sovereign wealth fund for the United States through an executive order signed on February 3, 2025. This order directed the Secretaries of the Treasury and Commerce to develop a comprehensive plan within 90 days, covering funding mechanisms, investment strategies, governance, and legal requirements (including potential legislation needed for full implementation). The fund aims to enhance fiscal sustainability, reduce tax burdens on families and businesses, secure economic stability for future generations, and strengthen U.S. global leadership.
While the fund has not yet been formally established via legislation—adopting an unconventional, decentralized approach involving multiple agencies—it is already operational through strategic investments and initiatives”

America should have a Sovereign Fund, funded in part with oil money from Alaska's ANWR.

[RandFan]

I dont excuse all that you make some good points!

[Bruce Campbells Chin]

You’ve always been fair minded here.

Thank you. Fair may be in the eye of the beholder, but I do try to be consistent. I'm on the side of my principles (right or wrong), not particular politicians. So sometimes I'm with Trump, and sometimes I'm not. Regardless, he's massively better than anything the Democrats are putting up.

You're very consistent also even though we don't always agree.

This particular topic is one of those where Trump is less bad than the Democrats, but much further towards centralized control than I would ever support.

[Bruce Campbells Chin]

America should have a Sovereign Fund, funded in part with oil money from Alaska's ANWR.

So the government should operate like a business in terms of having assets that it manages for profit? I mean...why?

To me, this is one of those ideas that might sound, uh, not horrible is you picture someone like Trump running it. Although the principle is still horrible to me.

But what about if someone like Biden, or AOC, or Newsome is President, and is using those funds to advance their agendas under the guise just "doing business"? Talk about the potential for slush funds for leftist organizations and causes....

[Worldtraveler once upon a time]

---- "Did author cover the percent of income derived from Fed Gov contracts by the likes of General Dynamics, Lockheed Martin, Northrop Grumman and other similar large companies, let alone much smaller companies the derive ALL their income from Fed Gov contracts?"

A good point. Here's another, as non-capitalist beggars are lecturing the masses on capitalism:

Things which are NOT capitalism:

1) "Reason is published by Reason Foundation, a nonprofit education and research organization." $ 23.3 million in 2024. President David Nott raked in $ 418,617 plus and additional; "related" $ 112,965. Compensation and benefits for these non-capitalists gobbles up about half their "donations."

Source: The Reason Foundation -- Los Angeles, CA -- Tax-exempt since March 1979

2) De Rugy's "Mercatus Center" is "a non-profit, free-market-oriented research organization affiliated with George Mason University. It advocates for market-based solutions to public policy issues and collaborates with policy experts, lobbyists, and government officials." $39,338,379 in 2024.

Mercatus Center Inc Executive Director Daniel Rothschild raked in $ 503,750 plus an additional $ 32,780 in "related" income. More than 40 percent of their "donations" go to salaries and benefits of these "capitalists."

Veronique De Rugy took in $ 315,671 plus an additional $ 20,403 in 2024.

Source: Mercatus Center Inc Form 990

Government funding of so much is not capitalism, and fat-cat talking heads -- even the ones one might like -- are, as non-profits gaining advantages the "marketplace" would otherwise have them prove.

Close down the non-profits not DIRECTLY involved in actual charity would make a great many moan, just as closing the many scams run out of USAID made for angry fat cats, their sinecures gone without GOVERNMENT.

I wonder what "senior fellow" De Rugy would do..... Probably plead for government help.

[RandFan]

Yes and the precedent has been set. What happens when the pendulum swings? My problem with FR is they give the president a blank check.

Can you imagine when the Dems are in power they will take this to a whole other level even if its “just Intel” and “Just 10%” they will take it further guaranteed....

[RandFan]

I see you made my point but didnt’ see it

That is my concern with all this

Trump maybe benign but precedents are being set and laws are being made with few checks or balances

[SmokingJoe]

“So the government should operate like a business in terms of having assets that it manages for profit? I mean...why?”

Because America has federal government debts of $38 Billion and rising fast?
Norway which has not had the most capitalistic governments has managed to ramp over $2 Trillion from their Sovereign Fund, with most of the money coming from North Sea oil.
The British who drilled for oil in the North Sea same time as Norway managed to go through the money fast with nothing saved.
Biden banned drilling in ANWR sacrificing vast amounts of money for America. We drill in ANWR we gotta have Sovereign Fund. Luckily Trump is already working hard on that.

[RandFan]

Thw problem is Trump isnt president forever

Even if benign he’s setting terrible precedents for the next Democrat to hold the office of president and they will use this excuse and powers with zeal.

This is my issue

[Harmless Teddy Bear]

No. There are not.

But that is sadly what I have come to expect from unreason.

[SmokingJoe]

You can’t control a company with just a 10% stake.
Plus tax payers were getting nothing for their $8.9 Billion. They were giving it out free.
Now they are getting 10% of Intel which is very good.

[SmokingJoe]

Hawley Grills DC Court Nominees About Shock Sentencing For Perpetrators Of ‘Big Balls’ Attack

https://www.youtube.com/watch?v=ocItZcIQYhg