Trump’s Intel Deal Sparks Outrage Over Socialist Control and Corporate Blend

President Donald Trump announced on Friday evening, August 22, 2025, that the federal government has acquired a 10% stake in Intel, a decision he framed as a win for America but one that has left many conservatives, including Rand Paul and Thomas Massie, frustrated, viewing it as an unsettling move toward government involvement in private business.

Why it matters:
This acquisition, facilitated by Trump and Commerce Secretary Howard Lutnick, marks a shift that troubles free-market advocates, who worry it blurs the line between government and corporate control, potentially setting a precedent for more federal overreach in the economy and disappointing those who prioritize individual enterprise.

Driving the news:
The deal, confirmed via Trump’s Truth Social post, involves the U.S. government purchasing 433.3 million Intel shares at $20.47 each, securing a 9.9% stake without voting rights, as part of a strategy to leverage CHIPS Act funds.

• The CHIPS Act, enacted in 2022, is a $52.7 billion bipartisan initiative to boost U.S. semiconductor manufacturing and reduce reliance on foreign supply chains, providing grants and loans to companies like Intel.
• Lutnick, on CNBC’s “Squawk on the Street,” explained the equity stake, saying, “We should get an equity stake for our money,” converting Biden-era grants into ownership.
• Trump credited negotiations with Intel CEO Lip-Bu Tan, presenting it as a boost for national security and economic strength, even though he called for his resignation a few weeks prior.

Catch up quick:
The announcement follows months of discussions to support Intel, which reported $19 billion in losses last year, using taxpayer funds to stabilize it amid global tech competition.

The intrigue:
The concern is whether this move will strengthen U.S. tech leadership or signal a troubling trend toward government influence in private companies, with figures like Rand Paul questioning if it aligns with America’s economic traditions.

Between the lines:
Behind the patriotic tone, the deal suggests a pragmatic use of CHIPS Act funds that some see as a step toward socialism, raising questions about the balance between government support and market freedom.

Independent Takeaways:
Clint Russell, host of Liberty Lockdown, offers a pointed critique of Trump’s Intel purchase, drawing parallels to the 2008 financial crisis bailouts under George Bush and Barack Obama, which he opposed as a free-market capitalist favoring creative destruction over government intervention. Russell argues that unlike the crisis-driven rescues of 2008, this move lacks a clear emergency justification, framing it as an unnecessary overreach.

He expresses frustration that Trump’s action resembles a “dictionary definition of fascism” by blending government ownership with corporate control, though he notes it differs from outright seizure. Russell further warns of broader implications, linking the Intel deal to other concerning trends like National Guard deployments and data surveillance via Palantir, urging listeners to reject this erosion of constitutional limits and economic liberty, regardless of their support for Trump.

What they’re saying:

• “If socialism is government owning the means of production, wouldn’t the government owning part of Intel be a step toward socialism? Terrible idea,” Rand Paul posted on X, embedding a link to AP News..
• “Our government should not have ownership in private companies. There are so many specific problems with an arrangement like this, but fundamentally, this is not who we are as a country,” Thomas Massie posted on X.

The bottom line:
Trump’s Intel purchase is a disappointing move that leans toward socialism, frustrating conservatives who value free markets, and while it may aim to bolster national interests by securing a foothold in a key industry, it risks undermining economic liberty by setting a troubling precedent for government overreach.

This decision not only clashes with the principles of limited government that many supporters once championed but also raises concerns about long-term consequences, potentially burdening taxpayers with the fallout of a struggling company while eroding the competitive spirit that drives innovation, leaving a legacy of increased federal control that could haunt future economic policy and disappoint those who hoped for a return to robust free-market governance.

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