America’s turn toward ad hoc state capitalism

The question of whether President Donald Trump has turned the United States toward a new “state capitalism” — one in which the government is not just economic referee but active player — has been answered. His second term brings policies that go well beyond traditional Republican pro-market orthodoxies, such as tax cuts and deregulation, and into direct involvement with production and capital. Yet this doctrine is less a coherent grand strategy than a set of ad hoc deals, sometimes pro-market and sometimes interventionist.

Some Trump policies — tax cuts, deregulating, talk of budget-deficit reductions — retain a traditional Republican tone. On the other hand, this administration’s protectionism and tariffs would have been inconceivable a decade ago. Republicans would also traditionally la