Daniel Wolfram
While Trump is a ardent defender of capitalism, some on the right says that many of his policies bares resemblances of socialism.
The message of many Republican speakers last night at Trump-a-palooza, the newly formed GOP midterm convention, was an attack on the ideology of the left, calling it “socialist” and “communist.”
It was well-received. Meanwhile, the crowd roared even louder when Trump went up as the last speaker of the night and brazenly promised to pay every adult American citizen $5,000 if Republicans keep control of the House and Senate.
People were quick to call it socialism, as this is not the first time Trump has toyed with this idea or adopted policies that resemble socialism.
The president promises a ‘Trump dividend’
“If the Republicans win, you win with us, and you get $5,000. It will be called the Trump dividend,” the president said during his marathon speech in Dallas, Texas, last night.
Trump further touted that because of the soaring American economy, it is possible to give every American that kind of stipend on the condition that the money is spent within American borders.
“Now all we have to do is win,” Trump said at the end. At the time of reporting, the White House has not given any indication of where the money is going to come from or how they plan to monitor the spending.
Not the first time Trump has promised “free” money to Americans
This promise may seem controversial and the opposite of what capitalism stands for, but this is not the first time Trump has done this.
Back during Trump’s first presidency, he ensured through congressionally approved stimulus checks that every American with a Social Security number who was not considered a dependent would receive $1,200.
The proposed $5,000 handout also raises the question of whether Trump is implementing more socialist policies during his second term.
Recently, Trump also offered a “Trump Accounts” savings account for children with an automatic $1,000 deposited in the account.
Is Trump turning socialist?
While the Republican-led House of Representatives spent last week passing a resolution denouncing socialism “in all its forms,” the Trump administration is getting criticized by some on the right for turning to socialism.
There are a couple of examples of it that have angered many on the right. One initiative would allow stay-at-home parents to collect childcare subsidies by taking the money from a program that assists working parents, according to The New York Times.
The criticism came from a Fox News host who said, “I see what the president is doing, but I think it’s a terrible idea. It’s socialism.”
How Trump is taking stakes in private companies
The Trump administration has also used the first two years in office to acquire equity stakes in 30 private companies like Intel, Nvidia, and Nippon Steel.
The Cato Institute, a libertarian think tank co-created by Republican megadonor Charles Koch, calls this a hybrid between capitalism and socialism, while conservative columnist Timothy P. Carney calls it “Venture Socialism.”
They are both criticizing Trump for betraying the founding principles of capitalism and using socialism as a “de facto nationalization” of private companies.
Furthermore, they are accusing Trump of undermining national defense and security by attempting to direct industries vital to national defense through state intervention and crony capitalism.
The main criticism is that Trump is using his “Big Government” to further his economic purposes that strongly resemble socialism.
