Is American Capitalism in Retreat?

In a recent episode of The Journal podcast, Jessica Mendoza and Greg Ip discuss the shift in the U.S. away from free market capitalism towards what they term "state capitalism." Ip explains that state capitalism, where the government intervenes in private companies' decisions, has been gaining traction, especially under the Trump administration, with examples such as the U.S. government's involvement in steel and semiconductor industries. They compare this to China's economic model, discussing its successes and failures, including overcapacity and political control issues. While acknowledging the potential benefits of government intervention in strategic sectors, they also raise concerns about the legal basis and potential for political influence, emphasizing the importance of adhering to constitutional limits to maintain the balance that has historically benefited the U.S.