Conservatives and economists warn Trump admin. against buying stakes in U.S. companies beyond Intel [View all]

Source: CBS News

August 29, 2025 / 6:00 AM EDT


Washington — The Trump administration's 10% stake in Intel, announced not long after President Trump had called on the chip maker's CEO to resign, is being criticized by conservatives and some economic policy experts alike, who worry such extensive government intervention undermines free enterprise.

Kevin Hassett, director of the White House National Economic Council, may have fueled those misgivings, telling CNBC this week that although Intel is a "very, very special" circumstance, that "there'll be more transactions, if not in this industry, then other industries." The possibility of the U.S. acquiring stakes in additional U.S. companies was immediately met with criticism.

Adam Posen, president of the Petersen Foundation for International Economics, responded immediately to Hassett's comment, posting on X, "ARE you effing kidding me? We are going past 1984 into Animal Farm territory at this point," referring to the George Orwell satirical novel critiquing totalitarianism. "Did anyone vote for this? Anyone?"

Daniel Di Martino, a fellow at the right-of-center Manhattan Institute, predicted that if that happens, the U.S. would see more cronyism, with the result that "companies will underperform because they know they will be bailed out," and "taxpayers will lose billions." "You can't just be against socialism when the left does it," conservative talk show host Erick Erikson said of the Intel agreement. "If you're not against socialism overall, guess what? You're going to get socialism. So if you support socialism, apparently Donald Trump is your guy."

Read more: https://www.cbsnews.com/news/trump-intel-stake-consertatives-economists-response/