Not long ago, Lina Khan embodied an emerging bipartisan consensus on the future of the US economy. Out was Bush-Obama-style deference to Big Business. In its place, populists of the Left and Right promoted industrial policy, state capacity, and curbs on the market power that allows the asset-rich to lord it over workers and consumers. They called this new consensus “post-neoliberalism” (not exactly a snappy coinage, but it did the job).
Well, so much for that.
“If you’re passing legislation that is effectively giving huge tax cuts to the rich and stripping away Medicaid, that speaks for itself,” Khan tells me in an interview Thursday, referring to President Trump’s One Big Beautiful Bill. “It’s difficult to paint that in any type of populist brush…. It’s very much a continuation of the kind of Reagan-Bush-type philosophy: ‘Let’s concentrate wealth upwards, and maybe it’ll trickle down.’”
She worries that the same corporations that used “woke” and “ESG” (environmental, social, and governance) tropes to legitimate their market power over the last decade are now deploying anti-woke rhetoric to do the same thing. And the Trumpians are letting them get away with it.
As chairwoman of the Federal Trade Commission under Joe Biden, Khan went further than perhaps any one official in giving teeth to post-neoliberalism. She reawakened the FTC, which for decades had lain dormant, enchanted by Reagan-era lullabies about how corporations can do no wrong. She went after firms that slapped false “Made in USA” labels on foreign-made goods; sued Facebook over its monopolistic practices; attacked fee-skimming middlemen in the drug industry; banned non-compete clauses used by employers to prevent workers from seeking better opportunities elsewhere; and much else of the kind.
Her crusades garnered praise from JD Vance, who, during the 2024 campaign, suggested she could stay in her job in a second Trump administration; young GOP staffers took to calling themselves “Khan-servatives.” And while she didn’t, in fact, get to keep her job once President Trump took over a second time, Khan saw early promise.
“In the first few months, and with some of their appointments, and certainly with their rhetoric, it did seem like there was going to be much more continuity” with the Biden approach, recalls Khan. As secretary of labor, Trump tapped Rep. Lori Chavez-DeRemer of Oregon, one of only three GOP lawmakers to cosponsor the PRO Act, the top legislative priority of the labor movement, which would reverse the decade-long hollowing out of collective bargaining.
On antitrust, Trump nominated Gail Slater, a former Vance Senate aide, to lead the Department of Justice’s antitrust unit. Antitrust types on both sides of the aisle viewed Slater as someone who gets it, an impression reinforced at her Senate confirmation hearing, in which she warned about the possibilities of market-based coercion and “private tyranny.” Trump’s antitrust team, moreover, retained the merger guidelines put forth by their Biden predecessors — standard practice, but enough to enrage the US Chamber of Commerce and the neoliberal Wall Street Journal comment pages (where, full disclosure, I used to work).
But then, as the honeymoon phase passed, says Khan, “we saw, just going back to this era of greenlighting really problematic mergers [and] accepting really flimsy promises for merging companies that create a huge risk of failure.” There were also “very troubling allegations about lobbyists kind of now taking over the process … and antitrust decisions being made not based on the facts and the laws, but based on what Trump lobbyist companies could get.”
She’s alluding to the DOJ’s controversial settlement in the merger between Hewlett-Packard Enterprise and Juniper, the second and third largest providers, respectively, of networking solutions for large institutions (universities, hospitals, sports stadiums, and the like). Early on, the Trump II DOJ sued to block the merger before putting the case on a settlement path.
But as contentions arose over the terms, HPE retained a pair of MAGA lobbyists to petition higher-ups in the department, circumventing Slater’s team. The final deal, as UnHerd first reported, was hashed out in a literal clubby backroom over cocktails, and two of Slater’s deputies who raised objections were fired. As one of the fired deputies, Roger Alford, wrote in an essay for UnHerd: “MAGA-in-name-only lobbyists and the DOJ officials enabling them are … determined to exert and expand their influence and enrich themselves.”
Reflecting on all this, Khan asks, “I think ultimately, a real realignment and a real commitment to economic populism require a willingness to make rich and powerful people upset, right?”
“Are Republicans equally alert to how business uses anti-woke as a shield against regulatory scrutiny?”
Not, it turns out, if the rich and powerful are willing to mouth the culture-war pieties du jour. During the “peak-woke” era, a firm like Amazon would march at the forefront of the Black Lives Matter column — even as it brutally suppressed the nascent Amazon Labor Union and called its African-American founder, Christian Smalls, “not smart or articulate.” Likewise in 2025, the Federal Communications Commission clears mergers between Paramount and Skydance Media based on the firms’ commitment not to pursue diversity, equity, and inclusion.
Khan is critical of both mirroring tendencies: the power of big business to adapt itself to prevailing cultural conditions, depending on who’s in power. “I’ve long been a skeptic of ESG-type initiatives,” she tells me, and when she took office as FTC chair, “I made very clear that there’s no ESG exemption to the antitrust laws. If companies come to me and say, ‘Hey, let our illegal merger through, but don’t worry, we’ll make some nice, full commitments,’ I tell them that was not what the FTC did.”
Put another way: You can’t act monopolistically and get away with it just because you hire a trans disabled CEO or donate to climate-change initiatives.
But are Republicans equally alert to how business uses anti-woke as a shield against regulatory scrutiny? Says Khan, “It is interesting and quite perverse, candidly, that we are now seeing [how] companies will make certain commitments to shut down their DEI projects…. And suddenly, you know, potentially troubling mergers” win approval.
Fair enough. But given the post-neoliberal thrust of much Biden economic policy, why did Trump and the GOP end up walloping Democrats in last year’s election, especially among working-class voters? Khan’s answer, in short, is that the Bidenites didn’t have enough time.
“There’s no secret that people were very concerned about cost of living,” Khan says, by way of explaining Kamala Harris’s failure. “Initially, there was a surge in pricing during the pandemic, because there were legitimate supply-chain issues. As those supply-chain issues got resolved, prices didn’t come down as quickly. We have seen companies be quite open about how, be it the supply chain issues, be it tariffs, these can be very useful covers for inflating prices.”
Neoliberalism, she says, was too entrenched for post-neoliberalism to overcome in short order: “Big picture, the [Biden] administration in a whole bunch of economic domains really did break with the 40-year Reagan-Bush-Clinton neoliberal playbook…. But at the end of the day, you’re going to need more than four years to fully undo the destruction of that 40-year regime.”
Not all Democrats agree. The so-called Abundance movement — a cohort of pundits and intellectuals led by the likes of Ezra Klein, Matt Yglesias, and the newly founded Argument magazine — trace the party’s troubles to too much populism and not enough deregulation, especially when it comes to building up housing and transportation in blue cities and states. They’ve courted, and received, the backing of some major donors in Silicon Valley and elsewhere.
What does Khan make of Abundance? “I haven’t seen any credible analysis that suggested why Democrats lost was we didn’t have enough donors on our side,” she says. “I just haven’t seen that presented in a convincing way.” Indeed, Harris had the backing of one tech heavyweight, LinkedIn founder Reid Hoffman, who called for Khan’s head as the price of ongoing support. “There’s some prominent tech donors who are opposed to the antitrust and competition work that we were doing.” Some of those donors are now throwing their weight behind Abundance.
Still, Khan grants part of the Abundance argument. Says Khan, “To the extent that there are arguments about making government more effective, more efficient, absolutely, let’s do that.” But even that, she goes on, depends on taking on oligarchic power and monopoly, since it’s often the largest firms that benefit most from byzantine bureaucracy and from deliberately gumming up economic governance as means to discredit it.
Asked which active politicians today she finds most congenial to her agenda, Khan doesn’t hesitate: Dan Osborne, the independent union organizer running to unseat a Republican senator in Nebraska; Abdul El-Sayed, the Bernie protégé running for Senate in Michigan; Nathan Sage, a progressive running for Senate in Iowa; and Zohran Mamdani, the socialist New York mayoral hopeful (and likely shoo-in).
The upshot of her analysis: given that the Trumpians are drifting away from robust antitrust, protection of entitlements, and friendship with organized labor, the future of post-neoliberalism turns on battles within the Democratic Party.
