02-04-2025, 02:51 PM
I believe he means investing public assets in the market or something along those lines.
Think of an SWF like the strategic petroleum reserve... sounds like a good idea on paper, but each party only thinks about how they can flip it for profit before their term ends. In the process, the asset itself gets destroyed. If Trump manages the SWF like it's his personal nest-egg (the Leftists will howl with anger), then it would be a good thing, because it will grow. But who comes next? And what happens to it then?
From an Austrian perspective, a rational government (e.g. a monarchy) would have a rainy-day fund, just like any other organization should have. Under-capitalization is the #1 cause of business failures... they just didn't save up enough cash ahead of time to get them through the slumps. Governments are no different as far as that goes... there will be slumps and, in order for the organization to operate reliably, it needs to have some cash on hand to get them through those slumps. But again, the problem with democratic rule is that once you get your guy into power, every incentive is to plunder the pantries before you are forced to hand the key over to the other party at the end of four years. So, how can the pantry ever be kept stocked? $36 Trillion and growing says it can never be stocked.
I'll be happy to be proved wrong, though. It's not impossible for Trump to do the right thing and to use an SWF as part of a strategy to bail the US out of debt faster than anyone thought possible. But the general concept is deeply flawed and, sadly, one good POTUS doing one good deed can't fix a perpetually broken system...
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