Dear Readers,
This week, Intel, the hardware designer and manufacturer, finalized its amended agreement with the Trump Administration. Previously, the corporation was a major beneficiary of financial support via the Biden Era CHIPS Act. The move is widely controversial, though not entirely unprecedented. Under the Obama administration, after the 2008 financial crisis, the federal government assumed equity in General Motors, Chrysler, Ally Financial (known previously as GMAC) and AIG related to several programs under the umbrella of the Troubled Asset Relief Program (TARP).
Perhaps more controversially, during the Korean War, President Truman issued an executive order for the Secretary of Commerce Sawyer to seize and operate steel mills in expectation of a workers' strike. In a 6-3 decision, the United States Supreme Court held in Youngstown Sheet & Tube Company v. Sawyer that the president did not have the authority to take possession of private business and that the President’s military power as commander in chief did not permit him to seize private property during wartime.
While the legal specifics may be one thing, the government's move violates the spirit of classical liberalism. In a separate discussion on this Intel episode, Allen Gindler and Sam Jenson explain how this partial acquisition signals a bad trend.
Outside of Intel news, the Trump administration has indicated that a decision on the federal scheduling of cannabis is imminent. Brady Leonard writes that this is an opportunity to roll back the failed drug war.
Next, we revisit a classic article by Anthony Gregory on the ironies of Labor Day.
Internationally, Francis Crescia details how Canada’s Bill C-11, state-sponsored media, and other laws suffocate free expression. It's a cautionary tale for America, too, for those who think “it can’t happen here.”
In Bolivia, Alvaro Vargas Llosa unpacks the legacy of twenty years of populist socialism in Latin America.
And finally, Craig Eyermann points out that the CBO’s projection that tariff revenue would decrease the national debt paints a rosy picture…but it bases that projection on a short-term drop in spending and trends that are unlikely to continue.
Enjoy.
Jonathan Hofer
Managing Editor
