Socialism on the Rise

A very long time ago, while I was attending Northern Arizona University, a political science class discussion centered around the difference between Socialism and Communism.  To some, the confusion was because the words are almost interchangeable and are often used as a descriptive term of a form of government.  This discussion led many to begin to understand both Socialism and Communism are forms of economic theory, and truly not a form of government.

In a nutshell, the difference between Socialism and Communism is quite simple.  A Socialist economic system requires the government to own the means of production that are of vital interest to the country.  All utilities would be owned and operated by the government.  Any commodity that is not of vital importance to the country can be owned by private individuals.  What that may mean is one could own a tv of choice, but the tv station and media is owned and operated by the government.  This type of economic system allows for social classes to exist because of the ability to own private property that is not deemed to be “of vital interest” by the government.

In a pure Communist economic system, the government owns ALL OF THE MEANS OF PRODUCTION.  The government controls all aspects of the economic system, determines a five-year economic plan, determines where workers are needed, and determines what will be paid to the workers.  Farms are state owned; and the government determines what crops will be grown. Under a Communist economic system, all citizens are treated the same; supposedly, there are no social classes.

I bring this to your attention because of some troubling activity that took place earlier this week.  I found this article published by the Intel Newsroom to be “of vital interest” to the country.

Intel and Trump Administration Reach Historic Agreement to Accelerate American Technology and Manufacturing Leadership

AUGUST 22, 2025Published

SANTA CLARA, Calif.-- Intel Corporation today announced an agreement with the Trump Administration to support the continued expansion of American technology and manufacturing leadership. Under terms of the agreement, the United States government will make an $8.9 billion investment in Intel common stock, reflecting the confidence the Administration has in Intel to advance key national priorities and the critically important role the company plays in expanding the domestic semiconductor industry.

The government’s equity stake will be funded by the remaining $5.7 billion in grants previously awarded, but not yet paid, to Intel under the U.S. CHIPS and Science Act and $3.2 billion awarded to the company as part of the Secure Enclave program. Intel will continue to deliver on its Secure Enclave obligations and reaffirmed its commitment to delivering trusted and secure semiconductors to the U.S. Department of Defense. The $8.9 billion investment is in addition to the $2.2 billion in CHIPS grants Intel has received to date, making for a total investment of $11.1 billion.

I’m not one to jump to conclusions, but the phrase “to advance key national priorities” is close in meaning to “of vital interests”.  

And to me what is even more disturbing was the following I found when reading NBC News as well as other news outlets:

U.S. could take stakes in more companies, Trump adviser says

Kevin Hassett said the Trump administration's piece of chipmaker Intel is "like a down payment on a sovereign wealth fund."
 
Aug. 25, 2025, 6:33 AM MST / Updated Aug. 25, 2025, 11:40 AM MST
By  Steve Kopack and Gabe Gutierrez

The U.S. government could take equity stakes in more companies, potentially through an American sovereign wealth fund, according to one of President Donald Trump's top economic advisers.

National Economic Council Director Kevin Hassett made the comments Monday, days after the United States took nearly 10% stake in Intel.  The government secured a piece of the semiconductor maker with money intended for grants as part of the CHIPS and Science Act, passed during the Biden administration.

And then, after reading what Hassett had to say, I read about this, being reported by CNBC, as well as other new outlets, the following:

Trump Pentagon weighing equity stakes in defense contractors like Lockheed, says Lutnick

PUBLISHED TUE, AUG 26 20258:20 KEVIN BREUNINGER

Top officials at the Pentagon are “thinking about” whether the U.S. should acquire equity stakes in leading defense contractors such as Lockheed Martin, Commerce Secretary Howard Lutnick said Tuesday.

The Cabinet secretary, in an interview on CNBC’s “Squawk Box”revealed the Defense Department’s interest in taking those stakes days after the U.S. government acquired 10% of Intel stock in a roughly $9 billion deal.

Lutnick was asked if the Trump administration would repeat that move with other companies that do business with the government.  “Oh there’s a monstrous discussion about defense,” Lutnick replied.  "Lockheed, which makes most of its revenue from federal contracts, is “basically an arm of the U.S. government,” he said.

In my lifetime of 74 years, I cannot recall the federal government going into business with companies, shall we say, “of vital interest”?  Defense contracts have been awarded on a bid basis; that would include planes, ships, guns, and ammo.
  
Recently, President Trump, as reported by NPR, Reuters, Time Magazine, and Newsweek,  has called for the FCC to revoke the broadcast license of ABC and NBC because they have treated him badly.  And it has been speculated that Stephen Colbert was cancelled as part of a deal, possibly to gain favor for Paramount's pending merger with Skydance.  Colbert had been openly critical of Trump while hosting the Late Show.  Is there a move to control broadcast journalism as well as print journalism?

I believe the most profound statement to come out of Washington D.C. during the past week was from Sen. Rand Paul, Republican from Kentucky, wrote in an X post, “If socialism is government owning the means of production, wouldn’t the government owning part of Intel be a step toward socialism?
”
The United States considers itself as a Capitalist economic nation.  The citizens of our nation are free to own the means of production.  The citizens of our nation are free to use their private property as they see fit, as long as it is within the confines of local ordinances.  The citizens of our nation are free to work where they wish, to purchase what they wish, to invest how they wish, to live where they wish…all integral parts of a Capitalist economy.

To be sure, there is governmental regulation in some areas of the economy.  That began with President Theodore Roosevelt taking on the Northern Securities Company using the Sherman Anti-Trust Act in 1902.  Why did TR do this?  To break up a monopoly and create a more level playing field for all entrepreneurs.  Several other monopolies fell because of this…Standard Oil was split into 34 different companies to break up an economic monopoly.  All of this was done for the benefit of the common citizen…the action tried to prevent an aristocracy of rich robber barons who controlled the economy and held great influence in Washington D.C..

So, after reading the different accounts of the past week regarding the government purchase of a part of Intel, and the distinct possibility of the government purchasing part of other industries that are certainly of vital interest to our nation, I must agree with Senator Rand Paul.

What is fascinating about this governmental action, President Trump has said he wanted to help the common citizen.  He has reduced taxes for the common citizen to put more money in the pockets of Americans.  However, his tariff war will undoubtedly cause prices to rise for the common person who is operating from paycheck to paycheck.  Trump wants to bring industry back to the US…a noble idea, but if the government buys into a company that returns to the US, why would those companies return?  And just for knowing, which agency of the government would receive the dividends from the companies in which our national government has become an owner?

And on another note, it would be interesting to see who purchased Intel stock BEFORE the deal was completed with the White House.  It would be just as interesting to see who has purchased stock in Lockheed before the announcement from the White House.  Insider trading?  Who became even more wealthy?  I’m not going to say corruption, but it is what President Theodore Roosevelt fought.  The rich getting richer and the average citizen taking it in the shorts.

I have arrived at my opinion…have you reached yours?