|
 |
PN is supported by paid subscribers. Become one 👇
Millions of Americans voted for Donald Trump multiple times because they thought that because of his experience in business, he must understand the American economy — and know how to make it work.
In reality, however, whatever success Trump had in his career was built on insight not into the workings of capitalism but into the darker corners of human nature. He succeeded through scams, lies, and bullying, using the power he had over others to enrich himself at their expense.
 |
|
So no one should be surprised that he brings the same spirit to policymaking. In his second term, Trump is at last unleashed to fully realize his vision, and on economics, that means a new kind of mobster state capitalism.
Case in point: When Trump looked at the chip maker Intel, he saw a vulnerable company to which he could put the screws. So after getting the ball rolling by publicly attacking its CEO, Lip-Bu Tan, and demanding he resign, Trump made his demand and got what he wanted: The federal government will purchase a 10 percent stake in the company for $20 a share, about $5 less than the current value.
The president wants everyone to know this “deal” was a product of intimidation.
“He walked in wanting to keep his job and he ended up giving us $10 billion for the United States. So we picked up $10 billion,” Trump said last Friday.
And what exactly did America get? Other than leverage over a troubled corporation by becoming a major shareholder, it’s hard to say; a bump in Intel’s share price won’t exactly make the government enough to pay down the debt. Is the man who gave the world Trump University going to be advising Intel on how to turn its fortunes around, leading to a boost for the whole economy? It’s hard to imagine.
This is only the latest in a series of moves Trump has made to give himself control over specific companies, most of which involve him spotting a firm that’s in a difficult position — or putting it there — then demanding some kind of tribute.