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The US government is seeking stakes in Intel, TSMC, and Samsung, among other firms:
Similarly, a few months ago, the Trump administration approved Nippon Steel's acquisition of US Steel contingent on the USG receiving a golden share that gives it considerable supervisory authority:
It's an interesting turn for the traditionally market-oriented, small government party to start making a play for the commanding heights of the economy. The Federal government has a long history of giving out subsidies as a matter of policy, but it generally hasn't tried to assert an actual stake in recipient businesses (it will sometimes assume control of failing institutions, but this is generally an emergency measure rather than a long term plan).
IMO these companies would benefit from having shareholders with very long-term focused horizons like governments.
It's not too unusual in Europe for strategic companies like Airbus and VW to have this.
This seems backwards. By their nature, private businesses tend to be focused on the long-term, since their value is equal to the net present value of all future cashflows from now until the end of time, whereas governments tend to focused on the short-term, since they just want to win the next election.
Private businesses aren't focused on anything, since they don't have minds. The people who make decisions on their behalf are quite often focused on the short-term. As a chief executive, I may be able to sell shareholders on a long-term plan, but often as not they're looking for a good quarterly report and I'm looking to keep my job and score a bonus.
Well, the shareholders care about the market's assessment of the long-term profitability of the company, and the shareholders elect the board of directors, so the company has a much stronger incentive to care about the long term than the government does. For the government to care about the king term, the voters need to be able to assess their performance and vote in that basis, and they just don't.
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