Federal Government's Major Investment Role Under Trump Mirrors Wartime Efforts

The Trump administration is reshaping Republican economic policy with direct investments in U.S. companies, according to Benzinga. The level of state intervention rarely seen outside wartime. Trump now holds a “golden share” in the controversial Nippon Steel–U.S. Steel merger, giving him veto power over key decisions. The Department of Defense will take a $400 million equity stake in rare-earth miner MP Materials, becoming its largest shareholder. The Republican Party is shifting from free-market principles toward state intervention in industries deemed crucial for national security. The Defense Department’s equity stake in MP Materials marks an unprecedented level of public-private cooperation in U.S. mining, resembling nationalization without its typical benefits. Experts say this could set a new precedent for public-private partnerships, though some warn it may trigger further market distortions.