When the President Takes a Cut
The article discusses President Trump's approach to government involvement in business, particularly through acquiring stakes in various companies. This strategy, which has bipartisan support, raises concerns about crony capitalism and the lack of transparency in how these investments are made. Critics argue that such government ownership could distort the marketplace and lead to arbitrary decision-making.
- ▪President Trump has made the federal government a corporate shareholder in various industries, including quantum computing and semiconductors.
- ▪The government has taken stakes in companies like Intel in exchange for grants, which has led to significant stock price increases.
- ▪There is no legal framework governing how the government can take equity in companies, raising concerns about transparency and accountability.
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IdeasWhen the President Takes a CutFederal stakes in public companies may enrich the government, but they are bad for America.By James SurowieckiSamuel Corum / Bloomberg / GettyMay 29, 2026, 7 AM ET ShareSave When it comes to the government’s relationship with business, Donald Trump is the most activist president since Franklin D. Roosevelt. He has wielded tariffs, the government’s purchasing power, and the threat of regulatory action to bend companies to his will. Over the past year, the president has even made the federal government a corporate shareholder across a range of industries.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at The Atlantic.
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