It seems to me that the concept of a Sovereign Wealth Fund might be worth considering for Social Security. Why not establish a fund, managed by the best advisors in the world, to grow the Social Security assets. It seems to me that the Sovereign Wealth Funds of Saudi Arabia, Russia, China, Norway, etc. will eventually have a competitive advantage over our entitlement based obligations. With the economies of scale that Sovereign Wealth Funds will enjoy, these funds will be able to grow their assets by incentivising the best advisors in the world and have an advantage over a system that is trying to find tax dollars to pay for social security entitlements. It seems to me that Sovereign Wealth Funds will be having a lot more fun funding their obligations than will be the entitlement programs who fund their obligations through taxes. Should'nt we be planning for such an advantageous position?
Granted that our trade deficit will be huge again this year; probably on the order of $700 billion; and granted that foreign interests will need to invest their dollars in dollar based assets; but it seems to me that a position of equity, even if we have to start it by debt, is stronger than a position of entitlements based on tax receipts.
As part of the American Experiment, it seems to me that it is time to consider starting a Sovereign Wealth Fund, owned by the people, whereby everyone has an interest.
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