State power versus the palace economy

The state-run model. Proponents of state-led economic intervention, such as former U.S. Energy Secretary Jennifer Granholm, argue that governments must take ownership stakes in critical industries to secure national security and global competitiveness (Harder Line). This approach moves beyond traditional regulation toward direct industrial participation, as seen in the U.S. government’s 10% stake in Intel. Advocates suggest this provides a necessary buffer against market volatility and ensures strategic control over vital sectors.

The palace economy. Critics argue that such state intervention inevitably creates a 'palace economy' where independent economic life is extinguished in favor of state-managed contours (kamilkazani). According to this view, sanctions and state-led industrial policies do not build resilience but instead concentrate resources within the ruling apparatus while the broader economy withers. Skeptics like former Minnesota Governor Tim Pawlenty warn that government is ill-suited to act as a venture capital fund, as political favoritism and the lack of market discipline create long-term distortions that are nearly impossible to unwind.

• The 2026 U.S. midterm results saw Democrats win control of both congressional chambers, signaling a major rejection of the previous administration's nationalist economic agenda (Mastering Geopolitics from Ricardo Martins).
• Global youth-led protests are increasingly using decentralized tools like Discord servers to bypass internet shutdowns and organize across borders (Thierry Malleret from The Monthly Barometer).