Government ownership of private firms is wrong | Letter

Federal Government Holds Stakes in 30 Private‑Sector Companies, Report Finds

A recent study published by the Cato Institute indicates that the U.S. federal government now owns shares in 30 private‑sector firms that are part of its “corporate portfolio.” The report, which reviewed public and private data, also notes that a similar number of companies have been announced or are under consideration for government ownership, and that additional investments are being made in entities controlled by federal agencies.

The companies listed in the portfolio span a range of industries, but a few stand out for their size and strategic importance. Among them are Intel Corp., MP Materials Corp., Lithium Americas Corp., and Westinghouse Electric Company. The report points out that a substantial portion of these firms’ revenues come from government contracts, and that the federal government’s ownership could influence procurement decisions. Such influence, the study suggests, could create an uneven playing field, potentially raising stock prices and easing financing and staffing for the owned firms.

The Cato report warns that these policy‑driven investments might have broader implications for competition and innovation. By favoring government‑owned firms, the report argues, the private sector could see reduced incentive to compete, which in turn could dampen research and development activity across related industries and ultimately harm the national economy.

The basis for the government’s share purchases remains unclear. The report lists several possible motivations, including the pursuit of profit, alignment with federal policy objectives, efforts to improve competition with foreign companies, and the possibility that individuals favored by former President Trump could benefit financially.

In a related letter to the editor, published in the Portland Press Herald, commentator Raymond Tillman from Westbrook expressed concern over what he described as the “government’s policy investments” in private companies. He urged public attention to the issue, emphasizing that the stakes involved go beyond mere fiscal considerations.

The Cato Institute has made its full findings available online, inviting lawmakers, industry stakeholders, and the public to review the evidence and consider its implications for future federal investment strategies.