Trump flirts with socialism in action at US Steel Walmart

President Donald Trump tries to join mandatory pharmaceutical companies Reduce drug prices through executive order. He has publicly warned Walmart No price increase Respond to his tariffs, privately Send the same message to the automaker. His government has Shows farmers can be released on bail Any market losses caused by his push to rebuild the world trade order.

Last week, the president touted the quasi-nationalization of steel manufacturing. “We have gold stocks, we have a gold share that I control or the president’s control.” Trump says About Japanese Steel that sells American Steel to Japan. “This gives you all the control.”

Trump’s “gold share” in U.S. steel is negotiated as part of a long-term sale to continue according to Howard Lutnick, Business Secretary. It gives Trump or his designated personnel a veto to ensure that steel production reaches a certain level and that in other matters of U.S. Steel, employment is not outside the United States. The company is now a subsidiary of Japan. Sales final Wednesday.

During the presidential campaign last year, Trump opposed socialism. Frequently criticized His political opponents were “communists” and “Marxists”. When then-Vice President Kamala Harris ran for the price challenge of fighting groceries, he attacked her as “comrade Kamala.”

But Trump, as president, has been happy to deploy the administration’s powers to achieve specific economic outcomes, unlike the Republican traditional hands-on free market approach. He took open, sometimes positive steps to take greater control over the behavior and decisions of the publicly traded companies with greater control. Calling it Trump-style socialism, the president put Adam Smith’s invisible hand aside, rather than in charge of himself.

“Some of Trump’s policies tend toward central control rather than market incentives,” said Erica York, an economist at the Right-leaning Tax Foundation. “Whether it’s tariffs specific to U.S. steel, state and industry, or breakdowns in tax laws targeting certain industries and job types, many of the government’s policies tend toward greater government involvement in economic decision-making.”

“It’s just ‘l’état, ‘c’est moi,’ for Trump. “He’s not a stubborn progressive leftist, but he likes something.” [are] Something he wants to control. ”

A broadly defined socialism requires the principles of reallocation of wealth, decision makers choose economic winners and losers, and government controls production means to replace enterprises. In the United States, like many countries, the elements of socialism have been intertwined with capitalism, especially in terms of social insurance for older people and taxation that raises funds for public roads and public schools.

“Now, I don’t think the ultimate goal is socialism, but the Trump administration is no stranger to using the administration’s ‘tools’ to interfere with the private market,” York said of Trump’s actions.

Last month, Trump talked about the U.S. economy, which seemed to be a supermarket, and he had a final decision on price. “We are a department store and we set the price.” Trump told Time. “I met with the company and I set a reasonable price… they could pay, or they didn’t have to pay.”

He treats himself as CEO and manages everything directly for the public. “I’m this huge store. It’s a huge and beautiful store and everyone wants to go shopping there,” he said. “I own the store on behalf of Americans, I set the price and I’d say, if you want to shop here, that’s what you have to pay.”

Trump tried to expand his influence and he did not evade from his targets targeting specific companies. His CEO Doug McMillon warned that tariffs could drive prices for his products to rise, and he slammed Walmart. Trump posts on social media Within a few days The company should “‘take tariffs”. Apple CEO Tim Cook also drew presidential anger last month, as Trump threatened 25% tariffs on unproduced iPhones in the U.S.

From his first term against the first term of a multinational company, this has always tended to deal with the multinational company if he thinks it is a barrier to his goal. register Targets at the time included Amazon, Boeing, General Motors and Harley-Davidson. At some point in 2019, then-Treasury Secretary Steven Mnuchin Promote the company Diversified in supply chains outside China during Trump’s first trade war.

Jeffrey Sonnenfeld, a Yale management professor who regularly communicates with top CEOs, said Trump has adopted a “gaps and conquest” strategy that prevents companies from taking a stance that might put Trump-sized goals behind the scenes.

“The CEO doesn’t want to speak out alone or you’re going to be as attacked as these law firms or universities that do say loudly,” Sonnenfeld said.

Now, Trump is empowering the administration to influence core actions of U.S. companies. It usually does not happen during emergencies. The U.S. government last gained a gold share in federal rescue companies after the 2008 financial crisis. US Steel Management Shares Will align The United States is closer to other countries China and Brazil, which has gold in precious strategic industries.

“What they did is nationalize American steel in a very delicate way,” said Douglas Holtz-Eakin, president of the Conservative American Action Forum. “It’s not what real conservatives would do. It’s a lot like Peronista From Argentina. ”

Trump-style socialism is different. Within the scope of reallocating wealth, it is expected to flow upward. A big giant analysis of Trump’s support From the non-partisan Congressional Budget Office The top 10% of households in the U.S. are expected to receive $12,000. The poorest 10% of households lost to $1,600. Democrats are blasting the Republican giants as a giveaway to the richest Americans.

“This is the kids’ caviar,” said Sen. Ron Wyden, Democrat of Oregon. explain“and the middle class Mar-a-lago.”