Boss Donny Does Like Daley

Having spent years following the power plays of Mayor Daley, I've learned a thing or two about all-mighty Big City Bosses who make the corporate elite bow to their commands--if they know what’s good for them.

But, sorry, Mayor Daley. When it comes to power moves, you got nothing on Boss Donny. I don't even think Daddy Daley--the Big Boss who taught his son everything he knew--would try anything as audacious as Trump's Intel deal. Follow me...

On August 11, Trump posted that Lip-Bu Tan, Intel's CEO, absolutely, positively, no-doubt-about-it had to step down because of his pasts connection to companies in China. Here's the Boss man's post…

“The CEO of INTEL is highly CONFLICTED and must resign, immediately. There is no other solution to this problem.”

Got that, Intel? No other solution to this problem! But...

On August 17, Tan met with Trump at the White House.

On August 22, Trump announced problem solved. Apparently, he found a solution to the problem that no one–other than Trump–realized was a problem. Tan had agreed to turn over roughly 10 percent of his company to the U.S. government and Trump would allow Tan stay on as CEO. Problem solved!

Or as Trump told reporters--Tan “walked in wanting to keep his job, and he ended up giving us $10 billion for the United States.”

That was then...

Okay, let’s break it down, as if it were a Mayor Daley press release about one of his cockamamie TIF deals…

For starters, Tan didn’t give us $10 billion. We gave him $10 billion. Or President Biden did in 2022. Part of the CHIPS Act, intended to keep America's computer chip industry competitive with manufacturers in Asia, particularly Taiwan. 

What Trump did was force Tan to treat what had been a multi-billion dollar federal handout as a stock purchase. So now we, the people, “own” roughly 10 percent of a company we never knew we wanted to buy.

I can see why Intel likes the deal. They get to keep the $10 billion handout. And Tan gets to keep his job–for which he receives roughly $69 million a year. With the president's blessing.

Not sure what we, the people, get out of this deal. Other than that aforementioned bill for $10 billion. 

Will the deal create more jobs? Doubt it. Intel's part of an industry designed to eliminate jobs–replacing human beings with robots. So you might say we're subsidizing our own economic ruin.

We do own 433.3 million shares of Intel–making us its largest single shareholder. Giving us bragging rights over Blackrock, now second with about 390 shares. Whoopty doo!

And I suppose that as shareholders we do get the benefit of rising stock prices.

But that’s only an on-paper-benefit--useless we sell the stock. And there’s no guarantee that Intel’s stock price will go up. It may go down. Then what? Buy the dip? Are we, the people now day traders?

Meanwhile, Trump makes out like a bandit. He effectively controls Intel. Their leaders must don the MAGA hat, metaphorically speaking. In particular, watch for Tan to show up on command for tech-related, dog-and-pony White House press stagings. Also, watch for Tan to donate to Trump's campaign. And most definitely NOT donate to Trump's rivals. And watch as Intel employees get squeezed to kick in for MAGA. So much for free speech.

Other corporations, take note. Better buy Intel products, even if you don’t need or want them, or Boss Donny will get mad at you. And slam your products. And call you names. And unpatriotic. Until you bow down, just like Intel.

So much for free markets.

It’s a Chicago-style shakedown on steroids. What’s next, Boss Donny? Gonna find a parking-meter system to buy? Or an airport to bulldoze?

I'd better stop before I give Trump any ideas.