Governments taking ownership positions in private companies or lending in exchange for direction will screw up as badly as in the past

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A key development in 2025 was the sharp rise of state capitalism in both Canada and the United States. Increased state involvement in the economy is a departure from both nations’ traditional approaches.

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In Canada, Mark Carney’s “nation-building” gives the government a key role in trying to influence economic outcomes. In the United States, the Trump White House’s detailed participation in corporate governance marks a transition toward state-directed economic policy. The governments of both countries are conferring advantages on selected companies, frequently benefiting their owners through direct state intervention in corporate decision-making.

State capitalism represents a distinct framework, separate from both Marxism and pure capitalism. It involves neither the complete government takeover of the means of production, nor full market autonomy. Instead, it attempts a partnership between the government and private-sector entities in managing economic affairs.

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