The Intelligence of the Intel Equity Stake
The White House’s sudden decision to take a ten percent stake in Intel startled some observers as a surprising lurch to government overreach by a Republican administration. In truth, it looks less like a lurch and more like a pilot program for an idea economic nationalists have been refining for years.
Julius Krein, editor of American Affairs, has been arguing that America’s capital markets are structurally incapable of funding the industries the nation actually needs. Last week’s deal gave him a live-fire case study.
For decades, U.S. corporate strategy has been to maximize shareholder value, not profits, Krein has argued. The two overlap only sometimes. That’s why companies cling to hurdle rates of fifteen percent even
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