The U.S. acquiring a 10% stake in Intel marks a notable shift in its traditional free-market capitalist model towards a more state-led capitalism.
- The government’s investment is structured as a passive, non-voting ownership stake.
Brief History of State-led Capitalism
- In the 1960s, European countries such as France and Britain intervened in strategic sectors like computers and aerospace to create competition on a global scale.
- In India, PSUs were established to facilitate rapid industrialisation, ensure state control over strategic sectors, and promote balanced regional development after independence.
About State-led Capitalism
- An economic system where the government exerts significant control over the economy, often through ownership of key industries and strategic resource allocation, while still operating within a market-based framework.
About Free Market Capitalism
- An economic system characterized by private ownership of the means of production, minimal government intervention, and decisions made through the forces of supply and demand.
