Propaganda Economics. Now the Federal Government Owns U.S. Steel?

In a previous blog post and YouTube video, I noted hearing rhetoric that sounded alarmingly similar to communist talk. I’m hearing it again with the possible merger of U.S. Steel and Nippon Steel.

When a dictator or even a president suggests that businesses should absorb financial losses for the greater good, and that everyday citizens, especially those in the lower and middle classes, should do the same, that’s the language of communism. The same when the government takes over private industry.

KEY POINTS

• I still hear Communist-style rhetoric in U.S. policy. When leaders demand that businesses and citizens absorb financial losses for the greater good, it mirrors communist principles.
• Businesses exist to generate profit, and legally, they cannot deliberately lose revenue due to shareholder obligations.
• If tariffs are successful, why would President Trump urge businesses to “eat the tariffs?”
• JP Morgan Chase is warning that the U.S. may be drifting toward a “Cubanized” economy.
• President Trump claims that the U.S. will own 51% of U.S. Steel. President Trump is seeking government control over private industry.
• There’s no clear deal structure, a lack of transparency, and a pattern of chaotic policymaking, all hallmarks of this administration.
• Despite “100 deals in 100 days” rhetoric and propaganda, there are no major agreements that have been secured. Not one!

Eat the Tariffs!

In a capitalist society, businesses exist for one primary reason: to generate profits. Legally, a company cannot deliberately lose revenue because it has an obligation to its shareholders. The board of directors ensures profitability. When they don’t do their job, the shareholders vote them out.

So when President Trump instructs companies to “eat the tariffs,” he either misunderstands how corporations function, or he recognizes that tariffs don’t work because if they did, he wouldn’t be telling businesses to absorb the costs.

Beyond the White House’s usual propaganda, JP Morgan Chase has warned that the U.S. might be moving toward a so-called “Cubanized” economy. (You can learn more about a Cubanized economy via this link. If you prefer video content, follow this YouTube link.)

The “Golden Share.” The U.S. Steel and Nippon Steel Deal

Now, my perspective is shaped by my background. I am a Cuban American, born to parents who fled communism for Miami, Florida, in 1963. The Cuban culture and influence are deeply ingrained in me, and that’s why I see parallels to communist rhetoric when President Trump claims the U.S. will own 51% of U.S. Steel, what he calls the “golden share.”

When does the federal government own businesses? Under communism. While I don’t believe the U.S. will become a communist nation, and I certainly don’t support communism, the similarities are undeniable, especially when authoritarian control creeps in.

Coincidentally, today is President Trump’s birthday, which will be celebrated with a military parade. It has an authoritarian, dictatorship type feel, doesn’t it? In response, there is the “No Kings” march.

This issue becomes even more complicated when considering Nippon Steel, a Japanese company looking to acquire U.S. Steel. If President Trump follows through on his claim to control the company, that means the U.S. government would own it outright. President Trump said the U.S. would own 51%, so that means Nippon Steel owns a minority share. Sounds a lot like “trickle-down” government control to me. Of course, Nippon Steel has no clue what the President is talking about.

Nippon Steel won’t want to hand over control to the U.S., let alone to President Trump. Of course, President Trump is a real estate developer, which makes me question the legitimacy of this deal even more, especially the intent.

Meanwhile, investors have no clarity on how this deal is structured, which, unfortunately, is all too typical of this administration. So, for the hundredth time, I’ll repeat that “chaos creates political instability, which leads to financial instability.”

How many times have we heard about “100 deals in 100 days”? For the record: zero deals have been inked with President Trump in office now for more than five months. The Trump administration claimed to have a deal with the EU (European Union), but in reality, there’s no deal. The only agreement in place is to attempt to negotiate a deal, akin to “concepts of a plan.”

Now, national security issues do have to be worked out. So, any buy-out or merger with U.S. Steel, there does need to be an “agreement” and federal government involvement. But agreeing to national security issues is a far cry from ownership.

And yet here we are again. President Trump is touting another mysterious “deal” that doesn’t exist, but states he has yet to approve it. No details, no transparency. All we know is that the U.S. will take ownership of a private company, or so President Trump says. Even the China trade deal is done “subject to final approval” from President Trump. But, according to representatives for China, it’s just the “framework” for a deal. See a pattern?

There’s a deal when both parties sign on to that deal. Otherwise, there is no deal, especially legally. Why keep saying there are deals when there aren’t? What’s the word I’m thinking of? Oh yeah, propaganda.

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