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Cassidy: U.S. stake in miner raises concern about "owning the means of production"
Summary
Sen. Bill Cassidy warned that a federal equity stake in a minerals company risks long-term government involvement in industry, saying brief, timed investments (as after TARP) differ from ongoing ownership that can distort markets.
The senator expressed caution about a reported U.S. equity position in a Canadian minerals company and said prolonged government ownership can create perverse incentives.
When the host noted Trilogy Metals had jumped after reports the U.S. would take a 10% stake in a Canadian minerals explorer, Cassidy said he was "personally concerned about stateowned enterprises" because the government can become more than a passive partner. "At first, you're a passive partner. It's one thing to have a position in the stock market or it's another thing to have a timed exit," he said, adding that after TARP there were some government positions with a timed exit that were acceptable.
Cassidy warned that if government ownership becomes long term it can lead to pressure to sustain employment for political reasons and may result in the government "dictating to the means of production what to do." He said he was heartened by the administration's reported statement that it would not take a board position but said lawmakers should prefer legislation that creates long-term certainty rather than relying on executive action.
He contrasted executive orders, which he called "powerful" but reversible by a subsequent president, with the need for statutory action to provide lasting certainty for businesses and labor.
The host framed the market move as a possible example of central planning; Cassidy said he spoke only for himself and described his conservative reservations about long-term government ownership of industrial assets.
