
SUMMARY: Trump is the only politician calling for and taking government control of private companies and resources. At his direction, the government has taken stakes in at least nine companies. On the other hand, democratic socialists in the U.S. today are in the mainstream of our history, not outliers, let alone communists.
(Note: If you find a post too long to read, please just skim the bolded portions. Thanks for reading my blog!)
(Note: Please follow me and get notices of my blog posts on Bluesky at: @jalippitt.bsky.social. Thanks!)
Despite Trump and the Republicans calling Democrats communists, – especially the progressive ones and the ones who identify as democratic socialists – Trump is the actual communist. Really. [1] Let’s review definitions of socialism and communism, and then look at Trump’s actions.
Democratic socialism was eloquently defined by Senator Bernie Sanders in the fall of 2015 when he was running for president. You can watch and listen to his two-minute definition here. (My post about Sanders’ speech with more detail is here.)
His definition builds on President Franklin D. Roosevelt’s (FDR) proposed economic bill of rights and notes that true individual freedom cannot exist without economic security. Democratic socialism includes:
- Decent jobs at decent pay with time off and the ability to retire with dignity;
- The ability to have adequate food, clothing, health care, and housing;
- A right to a good education; and
- The opportunity for small businesses, including farmers, to operate without domination by large corporations.
Sanders noted that Martin Luther King, in 1968, echoed FDR’s call for economic rights and stated that the US provides “socialism for the rich and rugged individualism for the poor.” By the way, while “socialism” may be a politically negative label to older Americans, 67% of young Americans have a positive or neutral association with the word “socialism” compared to 40% who are positive or neutral about “capitalism.”
Historian Heather Cox Richardson states that the democratic socialists in the U.S. today are in the mainstream of our history. Their policy proposals echo the 1860s, when the Republicans established public colleges; the 1900s, when Theodore Roosevelt called for public health insurance; the 1930s with FDR’s New Deal and proposed economic bill of rights; Eisenhower Republicans of the 1950s; and Republican President Nixon in the late 1960s and 1970s. (See my previous post for more details.)
Cox Richardson notes that today’s American democratic socialists are not communists or even hardcore socialists. [2] Communists and some hardcore socialists advocate for eliminating all private property. Today’s American democratic socialists call for a robust system of private ownership and enterprise, alongside government control of essential societal functions required for people to survive and for the economy to work for the good of everyone. (See my previous post for more details.)
Communism calls for government or communal ownership of all resources as well as all means of production, meaning the state, rather than private individuals or corporations, owns factories, farms, mines, etc. None of the Democratic or Democratic Socialist candidates is proposing anything akin to this.
The only politician calling for state takeover of private industries and resources is Trump. At his direction, the government has taken stakes in at least nine companies at a cost of at least $10 billion in taxpayer money. These companies are in the steel, minerals, nuclear energy, and semiconductor industries. [3] Trump claims he’s done this for national security reasons, but increasing his power, control, wealth, and influence seem to be the real reasons. Notably, the arrangements his regime has made leave power and control, as well as money, in his hands, not under the control of some group or entity that is committed to the public good. Trump has used tariffs (and exemptions from them), regulatory actions (e.g., approval or denial of mergers and acquisitions), and trumped-up lawsuits (no pun intended) to coerce business leaders into complying with his requests for control of their businesses.
For example, in August 2025, the Trump administration converted $9 billion in federal grants to Intel into a 10% ownership share in the company. The grants were made under President Biden’s 2022 CHIPS and Science Act to boost domestic semiconductor manufacturing and research. The U.S. government is now Intel’s biggest shareholder. Intel had been struggling financially and this, along with other actions by Trump requiring other companies to buy Intel products or invest in it, bailed Intel out. (Imagine what Trump and Republicans would have said if the Obama administration had converted its bailouts of Wall Street and automakers in the 2008 Great Recession into government ownership of those companies!)
Apple got an exemption from Trump’s 100% tariffs on semiconductor imports (essential to iPhones and many other Apple products) by promising to buy Intel chips and collaborate with it.
Nvidia got Trump’s approval to sell its artificial intelligence (AI) chips to China (which he had said and others believe is a national security risk). Nvidia agreed to give 25% of the profits from Nvidia’s China sales to the government and to invest $5 billion in Intel.
The U.S. government has also become the largest shareholder in MP Materials, the only rare earth mining company in the country, after a $400 million investment of taxpayers’ money.
When the Japanese company, Nippon Steel, acquired U.S. Steel in 2025, Trump conditioned government approval on his receiving a “golden share” in U.S. Steel. This golden share allows him to veto key business decisions including decisions on changing U.S. Steel’s name, moving its headquarters out of Pittsburgh, or closing production facilities. [4]
These actions are not capitalism. Establishing government control over private companies is nationalized socialism or communism. Nothing at all close to this has happened in U.S. history except during the true national emergency of World War II. This is oligarchic communism in that it’s making Trump and wealthy executives and investors in these companies even richer. And it’s concentrating ever more power over a broader range of the U.S. economy and society in Trump’s hands. That’s authoritarianism.
For lots of good news see Jess Craven’s Chop Wood Carry Water blog’s most recent good news Sunday posts here.
[1] Sonnenfeld, J.A., Pepper, J., Mulcahy, A., George, B., and Tyson, L.D., 8/21/25, “MAGA’s march toward a command economy,” Yale Insights (https://insights.som.yale.edu/insights/magas-march-toward-command-economy)
[2] Cox Richardson, H., 7/5/26, Letters from an American blog (https://heathercoxrichardson.substack.com/p/july-5-2026)
[3] Cox Richardson, H., 6/26/26, Letters from an American blog (https://heathercoxrichardson.substack.com/p/june-26-2026)
[4] Kimball, S., 11/24/25, “Trump appoints two Commerce officials to oversee U.S. Steel under ‘golden share’ agreement,” CNBC (https://www.cnbc.com/2025/11/24/trump-us-steel-nippon-golden-share.html)




































































