Trump Takes His Cut President Trump is increasingly using government power to take equity stakes in companies, a practice not seen since times of crisis and typically divested quickly afterward. While proponents argue it ensures taxpayers benefit from subsidies, critics point to a lack of legal framework, transparency, and the potential for market distortion and political meddling.

• Donald Trump is acting as an activist president, using tariffs, purchasing power, and regulatory threats to influence businesses.
• The federal government is now taking corporate stakes in industries like quantum computing, rare earths, and semiconductors, such as an 8.9 billion dollar grant to Intel in exchange for nearly 10 percent ownership.
• Unlike past government equity investments during crises (e.g., 2008 bailouts), Trump’s approach aims to make government ownership commonplace.
• Arguments for this strategy suggest that if the government subsidizes companies, it should share in the returns, a view echoed by some progressive Democrats.
• Concerns include the lack of clear legal authorization for these equity stakes, no established protocol for selling them, and a lack of transparency in company selection.
• While some targeted sectors are national security-related, decisions like considering a stake in Spirit Airlines suggest potential for personal preference over strategic need.
• Government ownership can tilt the marketplace, creating incentives for further government intervention and potentially leading companies to comply with presidential wishes for favorable treatment.
• Critics argue that federal stakes create an intimate, long-term partnership that prioritizes the government’s ownership interests over the broader economic health of the nation.