Source: Free Association
by Sheldon Richman
“Donald Trump wants to create a sovereign wealth fund (SWF). It’s a bad idea if your standard is freedom, free enterprise, and free markets. That’s not Trump’s standard, but we already knew that. A sovereign wealth fund is a government-run investment program. Where does the money come from? In the private sector, people save money (defer consumption) and let entrepreneurs and capital owners (perhaps including themselves) use it to produce goods and services that serve consumers sooner or later. … Governments with SWFs typically used budget surpluses to get them going. We might ask why those governments didn’t cut taxes and spending instead. After all, the government had taken in more money than it required to cover its spending. If you look at this from the politicians’ and bureaucrats’ point of view, the answer is obvious. They like using other people’s coerced money for social engineering.” (03/14/25)
https://sheldonfreeassociation.blogspot.com/2025/03/tgif-say-no-to-sovereign-wealth-fund.html