Emergence of New Government Economic Policies in the U.S.

For decades, conservative ideology championed free markets as the foundation of America’s economic strength. Milton Friedman was revered as a key advocate of laissez-faire economics, while the Soviet Union represented the rigid, failing alternative. Former President Ronald Reagan famously captured this sentiment by declaring, “The nine most terrifying words in the English language are: I’m from the government, and I’m here to help.”

However, this perspective has shifted significantly under President Trump and his party. The administration has employed tariffs to protect domestic businesses, while populist Republicans in Congress support government subsidies to stimulate manufacturing growth. The U.S. government has acquired a 10 percent ownership in Intel and secured 15 percent of Nvidia’s sales, both prominent chip manufacturers. Additionally, there are efforts to appoint Federal Reserve officials more aligned with the administration’s views. Measures once viewed as conservative taboos — protectionism, industrial policy, and government ownership — have now become accepted policy instruments.

This report explores these new state interventions with insights from expert reporters who cover economic and industrial developments.

Lauren Hirsch, a reporter specializing in Wall Street affairs, addresses key questions about government stakes in private companies.

President Trump aims to bolster Intel’s competitiveness against more successful foreign chip manufacturers. But how does government ownership function in practice?

Officially, the government has placed certain restrictions on its role as a shareholder. It has agreed to generally support Intel’s board on shareholder votes, which typically cover matters like board member selection and approval of major transactions. This arrangement reduces the influence of other shareholders. Nonetheless, the government retains significant informal power. For example, if the president publicly encourages Intel to establish a manufacturing plant in a particular state, it could sway company decisions.