This sounds a lot like a sovereign wealth fund. The government obtains fractional ownership over large enterprises (this can happen through market mechanisms or populist strongarming — choose your own adventure) and pours the profits on these investments into the social safety net or even citizens' dividends.
For this to work at scale domestically, the fund would need to be a double-digit percentage of the market cap of the entire US economy. It would be a pretty drastic departure from the way we do things now. There would be downsides: market distortions and fraud and capital flight.
But in my mind it would be a solution to the problem of wealth pooling up in the AI economy, and probably also a balm for the "pyramid scheme" aspect of Social Security which captures economic growth through payroll taxes (more people making more money, year on year) in a century where we expect the national population to peak and decline.
Pick your poison, I guess, but I want to see more discussion of this idea in the Overton window.
Yes, it is. And yes, except that it wasn't. A SWF is about building common wealth inside the systems that finance capital built (in the same way that the 401k replaced the pension) rather than turning back the clock on them. How you acquire those assets can vary wildly:
- Maybe you just decide to invest some public money
- Maybe you have some natural resources that are collective-by-default (minerals wealth on public land)
- Maybe there's a bailout of an industry that is financially broken but has become too big to fail cough and the government presses its leverage
- Maybe a president just wakes up and decides that he wants the government to own 10% of Intel, and makes that deal happen on favorable terms.
For this to work at scale domestically, the fund would need to be a double-digit percentage of the market cap of the entire US economy. It would be a pretty drastic departure from the way we do things now. There would be downsides: market distortions and fraud and capital flight.
But in my mind it would be a solution to the problem of wealth pooling up in the AI economy, and probably also a balm for the "pyramid scheme" aspect of Social Security which captures economic growth through payroll taxes (more people making more money, year on year) in a century where we expect the national population to peak and decline.
Pick your poison, I guess, but I want to see more discussion of this idea in the Overton window.