Microsoft<\/a> Corp. and NVIDIA Corp. But Temasek\u2019s investment in now-bankrupt crypto firm FTX shows some of the risks of such an endeavor.\u00a0<\/p>\nMost other sovereign wealth funds \u2014 including investment authorities in Kuwait, Norway, and Abu Dhabi created in the mid-20th century \u2014 were seeded with surplus oil revenue. Still, some US states, including Alaska, New Mexico, and Texas, have seen success setting up their own government-run investment ships financed by energy and mineral resources. And other nations, like Canada and Australia, have independently managed sovereign wealth funds.<\/p>\n
Congressional Outreach<\/h3>\n
The creation of any fund would require an act of Congress, where a battle over a potential funding source is likely to prove contentious. The White House has not yet begun engaging lawmakers on the idea \u2014 though they plan to discuss the proposal with both Capitol Hill and the private sector in the near future.\u00a0<\/p>\n
Last year, a bipartisan group of senators led by Louisiana Republican Bill Cassidy and Angus King, a Maine independent who caucuses with Democrats, suggested creating an investment fund with profits helping bolster Social Security benefits.<\/p>\n
The idea of a US sovereign wealth fund has at least some outside support. Hedge fund billionaire John Paulson said Thursday that he supported the US building a pool that would surpass the $1.7 trillion Norway uses for investments.<\/p>\n
\u201cIt would great to see America join this party and instead of having debt, have savings,\u201d Paulson said in an interview with Bloomberg Television. \u201cIt would be, over time, larger than any of the existing funds.\u201d<\/p>\n
Former Treasury Secretary Lawrence Summers, responding to Trump\u2019s proposal, though, called the idea \u201cincomplete.\u201d<\/p>\n
\u201cIt\u2019s one thing if you\u2019re Norway or the Emirates \u2014 that has this huge natural resource that\u2019s going to run out that you\u2019re exporting \u2014 to accumulate a big wealth fund. But we\u2019ve got a big trade deficit. We\u2019ve got a big, budget deficit,\u201d Summers said on Bloomberg Television\u2019s\u00a0Wall Street Week<\/em>\u00a0with David Westin Friday.\u00a0<\/p>\nSummers said it was \u201chard to believe that setting aside lots of funds for unspecified investments made in unspecified ways, where you don\u2019t even know what it\u2019s going to be called, is a particularly responsible, kind of proposal.\u201d<\/p>\n
Mixed Support<\/h3>\n
Critics argue that the fund could be exploited for political projects of sitting presidents, and prove difficult to fund \u2014 particularly as the nation continues to run sizable deficits contributing to a national debt that tops $35 trillion.\u00a0<\/p>\n
Jared Bernstein, chairman of the White House\u2019s Council of Economic Advisers, told Bloomberg Television he would be \u201cvery wary of getting involved in any kid of wealth fund.\u201d<\/p>\n
\u201cIt\u2019s certainly something I haven\u2019t talked about in meetings I\u2019ve been in,\u201d he said\u00a0<\/p>\n
Conservative economist Douglas Holtz-Eakin questioned the need for a fund.<\/p>\n
\u201cWhat problem would this solve? To my mind, none. There\u2019s no merit to it regardless of who proposes it,\u201d Holtz-Eakin said Friday. \u201cAll this would do is insulate that process from political scrutiny and oversight, and that\u2019s the last thing we need.\u201d<\/p>\n
Trump, speaking to economic leaders on Thursday, said he envisioned the fund as a way to address persistent debt issues and said it would be funded through his plan to impose tariffs on all imports.\u00a0<\/p>\n
\u201cWe\u2019ll be able to invest in state-of-the-art manufacturing hubs, advanced defense capabilities, cutting-edge medical research and help save billions of dollars in preventing disease in the first place,\u201d Trump said. \u201cAnd it is many of the people in this room who will be helping to advise and recommend investments for this fund.\u201d<\/p>\n<\/div>\n
[ad_2]
\n
Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"[ad_1] Top aides to President Joe Biden have been crafting a proposal to create a sovereign wealth fund that would allow the US to invest<\/p>\n","protected":false},"author":1,"featured_media":258775,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[149],"tags":[],"_links":{"self":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts\/258774"}],"collection":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/comments?post=258774"}],"version-history":[{"count":0,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts\/258774\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/media\/258775"}],"wp:attachment":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/media?parent=258774"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/categories?post=258774"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/tags?post=258774"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
![](\"https:\/\/fortune.com\/img-assets\/wp-content\/uploads\/2024\/09\/GettyImages-2154173632-e1725660462566.jpg?w=2048\")
<\/p>\n