It’s way late, but I’m glad that this is back on the table.
On the table, according to Semafor, is gradually raising the retirement age to 70 and creating a $1.5 trillion sovereign wealth fund, which would invest in stocks.
That fund would be separate from the already existing Social Security Trust Fund. If it underperformed, Social Security would be shored up by increasing the maximum taxable income and payroll taxes.
Raising the retirement age should be a no-brainer. Should be… people are living longer.
I don’t like the idea of a sovereign wealth fund. Leaving $1.5 trillion for politicians to plug into the private equity markets is a recipe for corruption and graft. Not only is it a massive target for corrupt people to direct funds into the pockets of their friends and families, but it is likely to be used for political virtue signaling. Is it difficult to believe that interests like global warming, equity, and reparations might take priority over getting a good return for the retirees? And why not? If the risk of a bad investment will be borne by the taxpayers anyway, there is no penalty for making terrible decisions.