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Is The White House Going To Start Buying Businesses?
The US government is starting to act more like a business every single day. Take the recent announcement of the United States government receiving 10% ownership in Intel, the American giant that designs, manufactures, and sells computer components. Critics immediately sounded the alarm.The United States government is now beginning to act like a communist state. They said, "The United States government is taking actual ownership of these successful enterprises, and these enterprises are going to end up being ...
Trump Administration Said to Discuss Taking Intel Stake
Bloomberg Television· 2025-08-14 20:25
Government Intervention & Industry Impact - The Trump administration is exploring new ways to involve itself in US industries, potentially through equity stakes, starting with the steel industry and now considering the chip industry [1][2] - The administration aims to secure deals that demonstrate a return of manufacturing to the US, particularly in the chipmaking sector, where the US has lost its leading role [2][3] - Discussions are underway regarding the US government potentially taking a stake in Intel to support the company's manufacturing hub in Ohio, which faces financial difficulties and production delays [3][4] - The administration's approach includes considering taking 15% of certain chip sales revenue when those chips are sold to China, raising questions about the future of companies like Nvidia and AMD [6] - Concerns arise regarding the level of control the government might exert over Intel's operations if it acquires a stake in the company [9] - The administration's actions are drawing comparisons to a centrally planned economy, deviating from traditional capitalism and raising questions about the government's role in deciding winners and losers in the economy [10][12][13] Legality & Precedent - The legality of deals involving government stakes in exchange for lifting export controls is being questioned [15] - Concerns exist about the precedent set by the government taking stakes in large US companies beyond temporary bailouts and the extent to which this resembles past interventions like the auto industry bailout [16] - The potential for government involvement in company decisions, such as board seats, raises concerns about whether government officials are best suited to run companies while also managing government responsibilities [17][18] Financial Implications - Intel could use the funding from the government during a difficult financial period [4][10] - The Trump administration is exploring ways to generate revenue through unconventional deals, such as taking a percentage of revenue from chip sales to China [7][8]
X @Bloomberg
Bloomberg· 2025-08-11 10:10
The chip-payment arrangement is the latest legally questionable, heavy-handed government intervention into business since President Trump returned to office https://t.co/i3GTiqNCgI ...
X @Bloomberg
Bloomberg· 2025-06-27 11:32
Geopolitics & Energy Security - The German government is considering measures to potentially block the sale of the Nord Stream 2 pipeline [1] - Speculation has arisen regarding the possibility of resuming gas deliveries from Russia via the Nord Stream 2 pipeline [1]