Trump’s Critics Point to Growing U.S. Government Stakes in Private Companies

The Trump administration's growing use of government investments and ownership stakes in private companies has raised questions about the changing role of the US government in the economy.

The Trump administration has taken government stakes in companies in strategic industries.

In an opinion article for The Guardian, Eduardo Porter examined the contrast between Republicans' opposition to communism and the Trump administration's increased intervention in private industry.

President Donald Trump has repeatedly criticized communism and socialism in political messaging.

At the same time, his administration has taken equity stakes in companies considered important to national security and domestic supply chains.

A recent analysis by the Peterson Institute for International Economics (PIIE), based on data from the V-Dem project, found that US state control of the economy increased sharply in 2025, the first year of Trump's second administration.

According to PIIE economist Cullen Hendrix, the United States had consistently ranked among the countries with the least state control of their economies for nearly two decades.

The country ranked second in 2024 but fell to 16th in 2025, according to the V-Dem measure cited by PIIE.

PIIE said the change was driven largely by government equity or equity-like stakes in private companies rather than outright nationalization.

The Trump administration's investments have included an approximately 9.9% stake in Intel, valued at $8.9 billion at the time of the 2025 agreement. The government has also taken or pursued stakes in companies involved in critical minerals, semiconductors and other strategic industries.

The administration's approach reflects a broader effort to use government resources to strengthen domestic production and supply chains considered important to national security.

Supporters argue that such interventions can reduce dependence on foreign suppliers, while critics contend that government ownership can blur the traditional distinction between the public and private sectors.

The United States' movement down the V-Dem ranking does not mean that the country has become a communist or centrally planned economy.

Rather, the index measures the degree of state ownership and control of the economy relative to other countries. The debate therefore centers on the extent to which the US government should intervene in private markets and own stakes in strategically important companies.