Tulane University’s Walter Isaacson: Trump’s push for Intel stake is ‘a scattershot method of crony capitalism’

[Intel Corporation semiconductor company]
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Walter Isaacson, Tulane University professor and Perella Weinberg advisory partner, criticized the proposed U.S. government stake [https://seekingalpha.com/news/4486650-trump-administration-considers-taking-10-percent-stake-in-intel-as-plan-develops-report] in Intel (NASDAQ:INTC [https://seekingalpha.com/symbol/INTC]) as a concerning form of “state capitalism.”

In an interview with CNBC, Isaacson expressed alarm at the government’s increasing interference in corporate decisions across various industries. “You’re seeing what is really state capitalism here, where the government is interfering in all sorts of ways in corporate decisions, whether it be pricing, whether it be Coca Cola (KO), whether it be Intel (INTC) and taking maybe taking a stake in it.”

Isaacson warned that such government intervention typically leads to negative outcomes.

“That type of state capitalism, it often evolves into crony capitalism where you have favored companies and industries, those that pay tribute to the leader,” he said and described this approach as “a recipe for not only disaster but just sort of a corrupt sense of messiness.”

While acknowledging the importance of bringing chip manufacturing back to the U.S., particularly for national security reasons, Isaacson expressed skepticism about the government’s chosen method.

“I think that to some extent using tariffs on especially things that are defense related or national security related is important,” he noted. However, he characterized the selective government investment as “a scattershot method of crony capitalism that’s not necessarily going to bring chip manufacturing back to America.”

Isaacson remained dubious about public-private partnerships in general, suggesting that government involvement often leads to inefficiency.

“When you start getting into actually executing infrastructure like trying to build electric vehicle chargers across America, that’s not the government’s specialty,” he said.

He emphasized that the focus should remain on the primary goal: “We got to keep our eye on the fact that the main thing is the main thing here, which is bringing manufacturing back to America.”

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