Rule by Deal – The American Prospect
Donald Trump pursues power through ad hoc agreements with companies and governments, shaping policy through direct deals rather than traditional frameworks. Some label this approach as “economic nationalism,” but this term does not fully capture the distinctive nature of his administration’s decision-making.
Expansion of Public Investments
Almost every week, Trump announces new public investments or subsidies targeting specific industries. Recently, the administration pledged $80 billion for nuclear power development. Around the same time, the U.S. and Japan agreed on extensive investments in critical mineral production, reflecting the growing emphasis on direct government involvement in strategic sectors.
Government's Role in Key Industries
- The U.S. government has become the largest shareholder in Intel.
- The administration collaborated with Nvidia to ease export controls on advanced chips to China.
Some observers describe these moves as a new “economic nationalism,” highlighting the focus on domestic economic priorities over international integration.
However, this label falls short of explaining the unique, deal-driven governance style shaping this administration’s economic policies.
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Author’s summary: Trump’s administration reshapes economic policy through strategic deals and targeted investments, redefining state involvement beyond traditional economic nationalism.