As I wrote last month, the key defining definition of socialism is government ownership of the means of production.

In other words, a country is socialist when government is the full or part owner of companies.

This policy is a failure when implemented by out-of-the-closet socialists like Mayor Mamdani in New York City.

But it’s also a failure when implemented by politicians like Donald Trump.

Sadly, it seems like Trump is doubling down on socialist failure. Here are some excerpts from a report in the Wall Street Journal by Alison Sider, Brian Schwartz, and Andrew Scurria. 

The Trump administration is nearing a rescue deal for Spirit Airlines, which is struggling to survive during a run-up in jet fuel prices. Under the agreement being discussed, the U.S. government would loan the embattled discount carrier as much as $500 million, receiving in return warrants to take a potential significant stake in Spirit, people familiar with the matter said. …The Transportation Department and Commerce Department are involved in the discussions, which aren’t yet final, and the terms of any agreement could still change. …rescuing Spirit would be a rare intervention to prop up a single carrier. …Trump said Tuesday he was troubled by the idea that Spirit, which employs about 14,000 people, could go out of business. “Maybe the federal government should help that one out,” he said on CNBC.

Here’s a frustrating part of this story.

Government intervention is a big reason that Spirit is in financial trouble.

JetBlue Airways in 2022 agreed to acquire Spirit in a $3.8 billion deal, but the Justice Department challenged it, arguing that the combination would hamper competition and lead to higher fares. A federal judge agreed and blocked the deal. “Spirit is a small airline. But there are those who love it. To those dedicated customers of Spirit, this one’s for you,” U.S. District Judge William Young, of the U.S. District Court for the District of Massachusetts, wrote in his 2024 decision.

In other words, Spirit would not be in trouble today if the government had not interfered with foolish antitrust law a few years ago.

Seems like Judge Young, who wrote, “this one’s for you,” should not have skipped economic classes in college.

Another case of Mitchell’s Law.

This tweet from Scott Lincicome is spot on.

I’ll close by warning that Trump’s socialism is setting a terrible precedent.

As noted in my Fifth Theorem of Government, it’s important to contemplate what happens when the “other side” is in charge of Washington.

I’m terrified by what a future President AOC might do now that Trump has opened a very bad door.

P.S. The U.S. only ranks #27 in the Hayek Socialism Index, which is not good, but I fear America’s score will be even lower in the next edition.

P.P.S. I don’t like bailouts, but I’d rather have Trump simply give cash to Spirit rather than give cash AND take an ownership position.