It is the 2025-12-17 edition of the Wall Street Journal (WSJ) that touts President Trump’s governance as “state capitalism”. Through a listing of recent state interference into the functioning of the economy, the branding of this as state capitalism by the capitalist-owned press is without precedent. The President’s office has obliged NVIDIA to pay 25% of revenue from its China business on advanced semi-conductors to the Trump-run government. We might call this a kind of kick-back or blackmailing, if you want to expand or keep your business with a specific client. Major institutions like the Central Bank (Federal Reserve in the USA) are tackled to follow state orders rather than keep an eye on their independent assessment of facts about the economy. Nomination of governor positions have been subject to persistent interference from the president’s office rather than the government taking a moderating role of divergent interests, competences and lobbying.
The medium and long-term inefficiencies of an “at-will economy” have several examples, many in South American economies. The US economy is moving South in several respects, with the loss of the value of the $ compared to the €, maybe even devaluation is used as a strategic economic weapon. (Image: Ballroom in Chateau Vaux-le-Vicompte, France)
