Podcast: Epic Times and Zombie Democracy

In the United States, where the free market has long been exalted as the supreme engine of prosperity, a peculiar irony is taking shape. On August 22, Commerce Secretary Howard Lutnick announced that the federal government had acquired a stake of just under 10% in Intel, instantly making itself the company’s largest shareholder. The stake - roughly 433 million shares, valued at about $8.9 billion, purchased at $20.47 each - was carved out of the Biden-era CHIPS Act subsidies and repackaged as equity. Formally, it is a passive, non-voting stake, with no board seat or governance rights. Yet symbolism matters: Washington now sits, however discreetly, in Intel’s shareholder register. Soon afterward, reports emerged that Samsung, South Korea’s industrial giant, had also been considered for similar treatment. What once would have been denounced as creeping socialism in Washington is now unfolding under Donald Trump, a president who boasts of his devotion to private enterprise but increasingly embraces tactics that blur the line between capitalism and state control.

The word “nationalization,” for decades associated with postwar Britain, Latin American populists, or Arab strongmen, is suddenly back in circulation - but this time applied to the citadel of capitalism itself. Trump justifies the intervention as a matter of national security and economic patriotism. Subsidies, he argues, are wasteful. Tariffs, in his view, are a stronger tool for forcing corporations to relocate factories to U.S. soil. Yet the CHIPS Act, that bipartisan legacy of the Biden years, remains in force and politically untouchable, funneling billions of dollars into domestic semiconductor projects. Rather than scrap it, Trump has chosen to alter the terms: companies that benefit from taxpayer largesse must now cede equity to the state. Intel, heavily reliant on those funds, has become the test case for this new model of American industrial policy.