Trump’s Challenge to Free Market Capitalism

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by Ben Casselman

February 22, 2026

AI-Generated Deep Dive Summary

President Trump has significantly departed from traditional Republican economic principles by increasing government involvement in private sector affairs. This shift is evident in his administration's actions, which contrast sharply with past policies and raise questions about the future of free-market capitalism. During his 2012 presidential campaign, Mitt Romney criticized government intervention, exemplified by his visit to Solyndra, a solar panel company that failed after receiving federal loans. Romney argued that such involvement distorted market dynamics, rewarding connections over merit. Economists at the time viewed Romney's stance as a defense of free enterprise, which prioritizes private initiative and competition. However, under Trump, the government has taken unprecedented steps to engage with private companies through direct investments and deals with CEOs. This departure from past practices has led economists to describe Romney's critique as "quaint." Trump's approach reflects a new era where the government's role in the economy is more prominent than ever before. This evolution in economic policy is significant because it challenges long-held notions of free-market principles, potentially reshaping business landscapes and market dynamics. The implications for future economic policies and their impact on businesses and consumers make this a critical issue for informed readers.

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Originally published on NYT Homepage on 2/22/2026