Why the Trump Administration is Now Taking Equity Stakes in American Companies

In this episode of the Odd Lots podcast, hosts Joe Weisenthal and Tracy Alloway interview Peter Harrell, a nonresident fellow at the Carnegie Endowment for International Peace and former member of the Biden White House and National Security Council, about the US government's recent investments in companies like Intel and MP Materials. The discussion explores the shift from traditional grants and loans to equity stakes, the potential risks and benefits of this approach, and the implications for corporate governance and competition. Harrell provides insights into the legal authority behind these deals, the strategic motivations of the Trump administration, and the reactions of foreign governments and businesses. The conversation also touches on the broader context of industrial policy, comparing the US approach to that of China and examining the potential tensions between maximizing shareholder value and serving the public good.