Getting Old, Getting Wise, and Getting Called a Communist

It’s becoming increasingly clear to me that I am old. My body aches in new and exciting ways, I seem to gain weight just by looking at ice cream, and I genuinely don't understand most of what "kids these days" are up to.

But with age comes experience. I’ve lived through a bit of history. My wife was born less than 20 years after World War II. I remember a time in America when politics "ended at the water's edge," a time when Republicans and Democrats presented a united front to the world. We certainly didn't accuse each other of being communists.

That has changed. Now, it seems the MAGA wing of the Republican party doesn't just accuse their opponents of being communists; they state it as a fact. The irony is staggering, because if you look closely at how real-world communist states operate, it’s the MAGA platform that seems to be borrowing from their playbook.

What Does "Communist" Actually Mean?

To be clear, there are two main flavors of communism. First, there’s the theoretical, Marxist version: a utopian, classless society where everything is shared, and everyone contributes "from each according to their ability, to each according to their need." It’s a nice idea where some people happily shovel manure while others design AI chips, and everyone gets paid the same.

Then there’s real-world communism, as practiced by regimes in Russia, China, and their ilk. This version is defined by centrally planned economies, state ownership of major businesses, and a deep aversion to free-market forces along with a heavy dose of kleptocracy.

Does that sound familiar? Let’s look at some recent trends.

The MAGA Playbook vs. Communist Economics

One hallmark of real-world communist countries is direct state intervention in the economy and the protection of domestic businesses from genuine capitalism. Consider these points:

• State Ownership and Influence: When the government takes a direct stake in a private company, like the US government's recent 10% stake in Intel, it blurs the line between state and market. In my 40 years of investing, I’ve never seen anything like it. This move gives a specific company an inside track on government contracts, regardless of whether they are the best supplier. That’s not capitalism; it’s a centrally planned decision.
• Protectionism and Tariffs: Communist countries don’t expect their domestic industries to compete and innovate on a global scale. Instead, they build trade walls to shield them. Raising the effective U.S. tariff rate from 1.5% to 18% is a classic protectionist move. It demands that their citizens/ comrades to bear the cost of protecting politically favored industries through higher prices and lower-quality goods.
• Autocracy and Kleptocracy: Finally, real-world communist states tend toward autocracy, where a single leader wields immense power and often enriches themselves. We’ve have a president who has reportedly made 3 billion while in office just 6 months, tells specific companies to absorb tariff costs, dictates how they should price their goods, and publicly praises CEOs who flatter him while attacking those who don’t. This style of leadership, where personal wealth and state power are intertwined, bears a striking resemblance to figures like Putin, who has amassed hundreds of billions, or Kim Jong Un, who effectively owns his entire country.

A Misguided Label

You might not agree with some in the Democratic party who believe in universal healthcare or a sustainable social security system, funded by higher taxes and closing loopholes for the wealthy. But those policies don’t make them communists. In fact, a strong argument can be made that providing healthcare and retirement security encourages consumer spending and allows businesses to focus on innovation instead of employee benefits.

What no true capitalist would support, however, is increased government ownership of private business, presidents accepting lavish gifts for preferential treatment, or walling off the domestic market from global competition.

So, the next time a MAGA supporter calls you a communist, perhaps the best response is a simple one from the playground: "I know you are, but what am I?"