Commerce Secretary Howard Lutnick is pushing back on Republican criticism that President Trump’s deal to acquire a 10 percent stake in Intel, one of the nation’s biggest chipmakers, is a step toward socialism and a major break with conservative free-market principles.
Lutnick pushed back specifically against Sen. Rand Paul (R-Ky.), who called the deal a “terrible idea” and a “step toward socialism.”
“I think he’s got it backwards,” Lutnick told Fox News’ Laura Ingraham in an interview, noting that Congress gave Intel approximately $11 billion in federal subsidies when Joe Biden was president.
He called the funding for the domestic semi-conductor manufacturing industry “beyond socialism,” even though the CHIPS and Science Act passed the Senate and House with strong Republican support — 17 Republicans in the Senate and 24 Republicans in the House voted for it.
Lutnick argued it’s “fair and smart” to give American taxpayers “equity” in Intel in return for billions of dollars in investment.
“Come on, let’s take care of the American taxpayer,” he said. “That is not socialism. I will tell you what that is. That’s the best businessman in the United States of America in the Oval Office doing fair things for us.”
Some Republicans, however, have expressed strong misgivings about the deal.
Sen. Thom Tillis (R-N.C.) told journalist Major Garrett that he feels “uncomfortable” about Trump’s use of federal power to influence decision-making not just at Intel but at other major companies.
“I don’t care if it’s a dollar or a billion-dollar stake,” Tillis said. “That starts feeling like a semi state-owned enterprise à la CCCP,” referring to the acronym for the USSR.
Mike Pence, Trump’s former vice president, however, told Bloomberg that he has “great concerns” about the U.S. government having “golden shares” in Nippon Steel or “taking a percent of Intel.”
Larry Kudlow, who served as Trump’s National Economic Council director during his first term, said during his show on Fox Business that he is “very, very uncomfortable” with the government taking a 10 percent stake in Intel.
Some liberals are applauding Trump’s deal with Intel, including self-described democratic socialist Sen. Bernie Sanders (I-Vt.).
Sanders said that American taxpayers “have a right to a reasonable return” on the subsidies they have provided to Intel and other domestic chip-making companies.
