• Trump administration is considering investments in Lockheed Martin and other defense firms.
• Commerce Secretary Howard Lutnick supports increased government involvement in business.
• Lockheed Martin derives 97% of its revenue from government contracts.
• Recent government actions include a 10% stake in Intel and acquisitions in other sectors.
• Critics warn that increased government stake may conflict with free market principles.

The Trump administration is reportedly contemplating taking stakes in key defense contractors like Lockheed Martin, as confirmed by U.S. Commerce Secretary Howard Lutnick. During a recent TV appearance, Lutnick echoed discussions with Pentagon leaders on the potential for government investment, stating, "They're thinking about it," thus endorsing Trump's vision for more governmental involvement in significant sectors like defense and technology, according to Reuters and India Times.

Lutnick emphasized that Lockheed Martin operates as an arm of the U.S. government since 97% of its revenue comes from government contracts. He highlighted the ongoing discussions about financing military acquisitions, suggesting significant strategic dialogues ahead. Shares for Lockheed Martin advanced by approximately 1.7% following these remarks, indicating market optimism about potential government backing, according to Al Jazeera and Reuters.

In addition to Lockheed Martin, Lutnick mentioned that the administration is considering stakes in Boeing and Palantir Technologies as well. Boeing's stock rose by 2.1% on the news, while Palantir, initially down, later gained 1.7% in midday trading, reflecting investor sentiment towards potential government investment in these major firms. Lutnick’s remarks come as part of a broader trend of the administration's intervention in private industries, typically associated with wartime efforts, according to India Times and Al Jazeera.

Critics express concern regarding this level of federal engagement, cautioning that such moves may prioritise financial success for contractors like Lockheed Martin over broader strategic interests. William Hartung from the Quincy Institute for Responsible Statecraft remarked on the need for distance between government decisions and corporate operations. Furthermore, Lutnick's comments have prompted a mixed response in political circles, with even some unlikely allies like Senator Bernie Sanders expressing tacit support for government investment under certain conditions, according to Reuters, India Times, and Al Jazeera.