US Government buys 10% of Intel

This is some wild news, honestly. The US government is shelling out billions to grab shares in a company, yet they aren't getting a board seat for it. Intel hasn't paid out any dividends this year, even though they usually do that quarterly. The company's definitely on a downward slope, losing market share and falling behind AMD in the tech race. So now the US government under Trump is jumping into private business investments... Do you think this will actually give the US an edge globally, or will they just keep trailing in tech?

There is nothing wrong with this, what is bonker about it? Should they continue to give free money handouts and get nothing in return for it whenever some idiots from management fuck up a company? A board seat is not necessary. Plenty of other governments have done the same, including Taiwan. Less CNN and more research sir. https://www.kamilfranek.com/who-owns-tsmc-largest-shareholders/

Nothing wrong with state ownership of corporations? Alright, sure why not even go full blast with it and take control of all corporations? Not just subsidies. Eliminate competition, centralize planning. Why not? If it works at 10% why not take full advantage of it? The US is seeing that capitalism is caving within and is now utilizing very antithetical solutions to save its economy. This is what's bonkers about it. Because the US has historically been a very strong proponent of the so called "free market capitalism". Now what's going to happen if US' partners also start subsidizing the industry? The EU has for forbidden state subsidies to industry and vowed to keep its markets competitive throughout its existence. But if Trump takes the charge at changing this who's to say that other countries that are historical US allies won't follow? In his first Admin Trump accused China a lot saying they had a strategic advantage due to central planning. So is the US trying to become a socialist economy now also? Will be funny to witness.

You completely ignored the argument. Why is it bad when Trump does it but it is not bad when other countries and companies do it? TDS strikes again. Is Taiwan a socialist economy and TMSC a state run business with centralized planning? If it is, then it is fucking better company than anything you liberal capitalist idiots managed to create in this century.   This has nothing to do with US's economy directly, it is about saving Intel. Mate you are being an idiot. Are free handouts part of free market capitalism or not? How is this different except that they actually get something in return? Usually what happens in a free money handout is that the companies do fuck all or the minimum necessary to satisfy the requirements and steal most of the money. This happens in every country of the world. This way they actually get something in return for the money, strategic stake in a fairly important company.

Who do you think has control over TSMC factories if not the US? China would wish it could take over Taiwan. In terms of local politics they could do it as they did with Hong Kong because the local population is pro China even more than Hong Kong. But the US has so much armory stationed in the area that it looks as if they wouldn't let Taiwan go without a fight. To this day TSMC ships most of its production directly to US controlled companies so in spite of being closer to china geographically the US is putting a big political war to keep it under control.

While this is almost true, it dodges the conversation. Let's see what AI can tell us about this. It is bad when Trump does it.

Its a 10% stake for god's sake. 10% and people react as it the US has turned socialist. The US can buy some shares as much as they want, if the state is an active shareholder it could put pressure on the management to raise wages.

I don’t have a problem with it, Intel is a huge organisation, a real titan in the business world. If it makes the government more money which stops our national debt growing at an insane rate then good. I don’t think it’s likely that investments in privately owned businesses becomes common. This is not anything for us to worry about.

State ownership isn't a bad thing. But the way Trump did it makes no sense. The US government gives Intel enough money for a 10% stake. The shares they get are non voting and they even declined a position on the board. So the government won't have any say in what the company does. And also intel has topped issuing dividends. So in spite of the government getting stock, the benefit gotten from this transaction is likely to be negligible. What intel needs at this point is innovation. The company already has huge cash and cash equivalents in reserves. If they can't utilize them for research how else would they get out of the slump they're in?

Sounds like a government bailout to me. Or maybe they are making their partnership official since intel is known for having backdoor on their CPU’s. They probably still have that, who will know? Do you think they’ll give up so easily just because they were exposed once? The gov is getting the most valuable thing from intel, it is intel. As the name suggests, intel is an intel agency, gathering intel for the gov and now it is official.

This is some communist North Korean or Chinese shit, it used to be mocked by Americans but apparently now dictator Trump can do whatever he likes. Maybe it should not be a surprise for a country that obsesses over their flag and national anthem, I guess they'll be prepared to bow to dear leader soon enough - when he takes total control and guts the government of anyone who opposes him. It's sad that these twisted old men want to drag America back by a hundred years to a time that cannot and will never exist again, they have some idealized version of what the country should be but it never even existed when they were young. I would say he'll start a war in order to keep power, but all the republicans are so subservient to him, they'll be on their knees to worship this frail clown. It's bizarre that one of the most successful advocates of free market capitalism is choosing to hobble some of it's most powerful companies by forcing them to accept partial government ownership. For a president that claimed to want to minimize government, he is sticking his fingers into even more pies and expanding the cost to government. He does all this to get around proper oversight and any votes, even by politicians in his own party. He is crippling American ingenuity and innovation with actions like these.