Thread

1. baron816 · 1790866833 · focus · HN ↗

   Summary of why sovereign wealth funds are generally a bad idea: the governments don’t like to do things that could potentially harm their investments. If a government has large stakes in cigarette companies, they’re going to be resistant to regulate them.

   There’s also plenty of opportunity for corruption. But even with safeguards, there’s going to be opportunities to steer investment towards favored companies and industries and away from those that oppose the administration or otherwise do things the administration doesn’t like (think of efforts to divest from Israel or fossil fuel companies).

   “Just invest in the S&P”. Something like this would give substantial power to the index makers. But it also gives preference to already huge companies. Small, unlisted companies would be indirectly penalized by having to compete against companies with government funding.

   1. jfyi · 1790868741 · focus · HN ↗

      > the governments don’t like to do things that could potentially harm their investments. If a government has large stakes in cigarette companies, they’re going to be resistant to regulate them.

      The ideal in a democracy would be that we behave as adults and make the decision where to draw the lines.

      ...and yeah, corruption is a problem, but it's going to find a way regardless of what we throw at it. We would be better off handling the existing corruption than worrying about some hypothetical future corruption as a reason we can't try new things.

      1. baron816 · 1790869956 · focus · HN ↗

         I think what we’ve found with the current administration is that people will use every last surface for corruption and power that they can. The more you opportunities you give the government to be corrupt, the more corrupt they’re going to be.

         1. scottyah · 1790870624 · focus · HN ↗

            Also of note: this is not the first administration to take controversial action. Pretty much every government ever has shown that more power = more corruption.

            1. klaff · 1790874669 · focus · HN ↗

               Also of note: this administration has taken corruption to levels not seen before.

               1. jfyi · 1790936918 · focus · HN ↗

                  I agree, it's hard to let someone get all hand wavy about hypothetical corruption right now. That ship has sailed and is sinking as we speak.

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