As the US primary election season intensifies, a stark reminder of America's Cold War past is re-emerging: former President Donald Trump and his Republican allies are once again labelling Democrats as 'communists', drawing a line in the sand between liberal policies and Marxist ideology. This marked shift in rhetoric comes hot on the heels of victories by democratic socialists and their progressive allies in New York and other states, prompting Republicans to dust off and wield the tried-and-tested tactic of tapping into American fears of communism.
The language used by Trump is nothing short of inflammatory, as he equates democratic socialism with the most extreme interpretations of communism. During a recent address at Mount Rushmore commemorating the 250th anniversary of the signing of the Declaration of Independence, Trump stated that "Communism is the exact opposite of life, liberty and the pursuit of happiness. It’s death, tyranny, and the pursuit of evil." He went on to assert that "The godless communist morality states that anything is justified to bring about inhuman visions… They don’t want good. They don’t love God and they don’t want God."
A paradoxical twist to Trump's anti-communist rhetoric has emerged, however: his administration's expansion of government control over private industry has been the most extensive since the Cold War. The US government now holds a 9.9% stake in Intel Corporation, making it the chip maker’s largest single shareholder following redirected funds from the Chips Act. Furthermore, warrants have been issued to acquire an additional 5% of the company.
This trend is not isolated: the US government also holds a 15% stake in MP Materials, with the Department of Defense being the rare earth producer’s largest shareholder. The Department of Energy has a 5% stake in Lithium Americas and a 5% economic interest in its Thacker Pass joint venture with GM. Even the acquisition of US Steel by a Japanese firm was permitted only on the condition of a 'golden share', granting the government veto power over certain industrial decisions on national security grounds. OpenAI is reportedly in discussions to cede 5% of its equity to the government.
Beyond direct ownership, Trump has employed tariffs as a key policy tool, either protecting or penalising specific industries and private firms based on White House directives or, at times, personal discretion. For example, Nvidia and AMD secured export licenses for their valuable AI chips to China only after agreeing to pay the US government 15% of their China chip revenue. This dichotomy between strident anti-communist language and significant state intervention in the economy presents a complex and potentially contradictory political landscape.
The current US House Speaker, Mike Johnson, has also weighed in on the matter, describing democratic socialism as "a serious threat to our whole system of government." His sentiments underscore the Republican party's attempts to paint Democrats as ideologically unsound, rather than engaging with the policy nuances at hand. As the US primary season continues, this increasingly divisive rhetoric is set to dominate headlines and shape public opinion – but what does it mean for Britain?