The Promise and the Peril of Trump’s Socialism
On August 22nd, 2025, the Trump Administration made headlines by converting billions in subsidies for Intel into a 10% government ownership stake. The White House called it a smart move for national security. Others saw it as a dangerous turn toward government meddling in private business.
The reactions were telling. Senator Bernie Sanders cheered: “If microchip companies make a profit from the generous grants they receive from the federal government, the taxpayers of America have a right to a reasonable return on that investment.” Senator Rand Paul, on the other hand, warned: “If socialism is government owning the means of production, wouldn’t the government owning part of Intel be a step toward socialism? Terrible idea.”
So which is it, smart stewardship or creeping socialism? The answer depends on how it’s done.
Ownership vs. Control
It’s important to understand the difference.
Ownership means the government has shares, like any other investor. It gets dividends if the company makes money.
Control means the government can tell the company how to run itself, who to hire, what to build, or even how to think politically.
A government stake can be harmless, or it can become a lever for political loyalty. Imagine if Intel felt pressure to donate to the president’s campaign or adjust its strategy to please the White House. That would be a corrupt form of socialism: using public money to secure private power.
A Better Path: The National Wealth Fund
But there is another way. Instead of leaving shares in the hands of politicians, they could be placed in a National Wealth Fund. This would be managed independently, like a public trust, with the sole goal of growing long-term wealth for the American people.
Examples already exist. Alaska’s Permanent Fund invests oil revenues and pays every resident a yearly dividend. Norway’s sovereign wealth fund, the largest in the world, invests its oil money globally and uses the returns to support public services. Both show how shared ownership can build prosperity without political abuse.
In the Prosperity Loop model, the National Wealth Fund is one of four “structural loops” designed to keep the economy fair and balanced. Here’s how it works:
The Fund invests public resources (like shares in companies or fees from polluters).
The Returns are reinvested and partly paid out as a Freedom Dividend, giving every American a direct stake in the economy.
The Safeguards—professional management, transparency, and independent oversight, keep politics out.
The Risk of Doing It Wrong
If public shares are held directly by the government, they can become political weapons. Today it might be Intel; tomorrow it could be any company pressured to show loyalty. That erodes trust in both markets and democracy. It’s the peril side of Trump’s socialism.
The Potential of Doing It Right
If shares are held in a National Wealth Fund, the story changes. Instead of being a cudgel for politicians, the investment becomes a foundation for shared prosperity. The returns flow to every household, creating a dividend that acts as both a safety net and an economic stabilizer.
That’s the promise: turning public investment into lasting public benefit.
The Prosperity Loop
The Prosperity Loop is not pure socialism or pure capitalism. It’s a blend of both, taking the innovation of markets and combining it with the fairness of shared wealth. Its four loops are:
Free Market Engine – keeping property rights and entrepreneurship strong.
Commons Fees – charging for use of shared resources like air, water, and data.
National Wealth Fund – investing shared resources for long-term growth.
Freedom Dividend – distributing part of the returns to every citizen.
This design ensures prosperity circulates through the whole economy rather than being hoarded at the top.
Conclusion
Trump’s Intel stake is a warning and an opportunity. If government ownership is used to demand political loyalty, it’s a corrupt form of socialism. But if it’s placed in a National Wealth Fund, managed independently and tied to a universal dividend, it could be a first step toward an economy that works for everyone.
That is the Prosperity Loop vision: fairness and growth, coming full circle.