Sen. Rand Paul, R-Ky., challenged President Donald Trump's decision for the U.S. to take a 10% stake in chipmaker Intel, calling it a "bad idea" and "a step towards socialism."
Paul made the comments in a Wednesday interview with CNBC.
Intel said last month the U.S. government invested $8.9 billion in the company by purchasing 433.3 million shares of common stock at $20.47 each, securing a 10% stake. The company noted the purchase price was below the prevailing market rate.
"It's always a mistake to say, Well, we have this one bad policy. All right, we'll tolerate a little socialism, but we don't want any more," Paul told CNBC. "I think it's a bad idea."
Trump called people who were unhappy in the aftermath of the transaction "stupid."
"I PAID ZERO FOR INTEL, IT IS WORTH APPROXIMATELY 11 BILLION DOLLARS. All goes to the USA. Why are 'stupid' people unhappy with that? I will make deals like that for our Country all day long," Trump posted on Truth Social on Aug. 25.
Trump got support from Sen. Bernie Sanders, I-Vt., a self-described democratic socialist.
"If microchip companies make a profit from the generous grants they receive from the federal government, the taxpayers of America have a right to a reasonable return on that investment," Sanders said in a statement.
But he didn't get support from Paul.
"I worry that the free market movement — the movement that was a big part of the Republican Party — is being diminished over time," he said.
Mark Swanson ✉
Mark Swanson, a Newsmax writer and editor, has nearly three decades of experience covering news, culture and politics.
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