Red scare revived as Trump leads push to attack Democrats as ‘communists’

Trump Administration Pursues Equity Investments in Technology and Manufacturing Firms

Moments after Donald Trump rang the ceremonial opening bell on Monday from the Oval Office to start the trading day, Senator Ted Cruz, 232 miles north on Wall Street, described the president’s new savings accounts as the administration’s “New Deal.” “But instead of having government taking care of everyone,” Cruz said, “Trump accounts are about making every child and every American a capitalist.”

Following primary election victories by democratic socialists and allied progressives in New York and other states, Trump and Republican officials have increased references to communism when discussing Democratic policies. Trump has described communism as “the exact opposite of life, liberty and the pursuit of happiness. It’s death, tyranny, and the pursuit of evil,” in a speech at Mount Rushmore marking the 250th anniversary of the Declaration of Independence. He added that “the godless communist morality states that anything is justified to bring about inhuman visions” and that opponents “don’t love God and they don’t want God.”

No prior president had conducted the market-opening ceremony from the White House. The administration has also taken equity positions in several companies. The federal government holds a 9.9 percent stake in Intel Corporation, making it the chip maker’s largest single shareholder. These shares resulted from redirected funding under the CHIPS Act. The government holds additional warrants that could increase its ownership by another 5 percent. Intel remains a publicly traded company under private management.

Similar equity arrangements exist with other firms. The United States holds a 15 percent stake in MP Materials, with the Department of Defense as the largest shareholder. The Department of Energy maintains a 5 percent stake in Lithium Americas and a corresponding economic interest in the Thacker Pass project involving General Motors. The acquisition of U.S. Steel by a Japanese company proceeded only after the inclusion of a “golden share” granting the government veto authority over certain decisions tied to national security. OpenAI has discussed transferring 5 percent of its equity to the government. Export licenses for Nvidia and AMD semiconductor sales to China were approved after the companies agreed to remit 15 percent of related revenue to the U.S. government.

These transactions occurred through existing statutes and executive actions focused on supply-chain security and domestic production. The companies continue to operate as private entities with shares traded on public markets.

Republican commentators have echoed the administration’s statements on communism. Fox News host Jesse Watters said the Democratic Party “screwed up so badly and didn’t deliver a damned thing when they had power, that they had to play footsie with commies to shore up their base.” House Speaker Mike Johnson described democratic socialism as “a serious threat to our whole system of government.” Former White House adviser Matt Mowers told Newsmax that certain speeches were timed to divide the public ahead of national celebrations.

New York Mayor Zohran Mamdani criticized wealth inequality in a public address before Independence Day. Conservative figures responded by linking his remarks to broader socialist platforms. Commentator Barbara Boyd of Promethean Action circulated materials from the Marxist Unity Group, a faction inside the Democratic Socialists of America that advocates separating from the Democratic Party and altering the structure of the Senate and Supreme Court. Former White House press secretary Karoline Leavitt attributed some generational economic complaints to personal factors before issuing a clarification.

Republicans have stated that highlighting these policy differences may improve their position in upcoming midterm elections. The equity investments described above remain subject to the terms of the underlying legislation and partnership agreements, with ownership stakes held by federal agencies rather than through outright seizure of assets.