The administration is running a television advertisement in which President Trump says, “Together we will defeat communism, socialism, and Marxism in America.” Government-financed propaganda promoting an unpopular head of state is something one might associate with a communist country. The irony doesn’t end there. The ad’s target is the Democratic Party and its leftward shift, as evidenced by its “democratic socialism” problem. Yet it is Trump himself who has unlocked the door the left has long sought to open: the normalization of government ownership of private companies.
While the government has occasionally taken stakes in private companies, it has generally done so—rightly or wrongly—as a temporary measure to address a perceived emergency. However, never in U.S. history has the executive branch taken ownership stakes in private companies simply because the president wanted his own federal investment portfolio. And this administration has done so without clear legal authority.
As of this writing, the administration has announced deals giving the federal government equity stakes in 34 private companies and counting. Thus, after Trump has spent much of his second term acquiring the means of production, his pitch ahead of the November elections is that he will stop Democrats from … acquiring the means of production?
To be sure, there are anti-market Democrats who have long desired to make government ownership of companies a permanent federal policy tool. Indeed, how they have responded to the administration’s equity deals offers clues about how they may deploy this tool when Republican dominance in Washington ends.
