Trump’s Un-American Capitalism

Jun 24, 2026JOSEPH E. STIGLITZ writing in Project Syndicate

The current US administration’s openly corrupt style of crony capitalism is the antithesis of the institutional foundation on which the US economy was built. The winners in the new oligarchic competition are not those who make the best products, but rather those who are best at flattering the mad king…

In any case, for anyone who thinks Trump and his cronies are acting out of concern for the average American, I have a bridge in Brooklyn to sell you. This is the most corrupt administration in US history—by orders of magnitude. Nothing this government does is above board. Every stake it takes in the private sector is driven by favoritism or senior officials’ personal investments, and the resulting economic distortions will only continue to mount.

The GOP’s brand of capitalism has far-reaching implications. First, and most importantly, it undermines democracy, moving us ever closer to oligarchy, where politically connected elites determine policy. Second, it also undermines American prosperity. A core insight from modern economics and economic history is that strong institutions, including the rule of law, are essential to achieve sustained improvements in living standards.

Trump’s thuggery is the antithesis of the institutional foundation on which the US economy was built. The winners in the new oligarchic competition are not those who make the best products or are the most innovative (in terms of AI, that title would seem to belong to Anthropic at the moment). Rather, it is those who are the least principled, and the best at flattering the mad king. Is anyone surprised that Sam Altman, the CEO of Anthropic’s flailing competitor, OpenAI, first pitched the idea of government shares to the Trump administration?

My note: Before the USA had a permanent income tax, the government relied on tariffs and excise taxes. These taxes heavily benefited the robber barons and wealthy Americans because they quelled foreign competition. They were regressive. That’s why average Americans demanded a change in the form of income taxes which are progressive.

Does any of that sound familiar? Higher tariffs and lower income taxes benefit who?