President Donald Trump recently expressed interest in Australia’s compulsory savings program. Romina Boccia, director of budget and entitlement policy at the Cato Institute, and Ivane Nachkebia, a Cato research consultant, warn that under the guise of helping Americans to save more, the Administration may be exploring ways to finance a sovereign wealth fund (SWF)—the creation of which the President authorized earlier this year. 

As Boccia and Nachkebia argue, a government-run SWF would almost certainly invite political interference and cronyism, channeling investments toward politically favored industries rather than serving the best interests of American workers and retirees:

“Workers don’t need Washington to seize a bigger share of their earnings to ‘help’ them save. The real risk here is a politicized sovereign wealth fund that expands governmental influence over markets.”

To speak with Boccia about the dangers of a sovereign wealth fund — and why Australian-style compulsory savings may be attractive to the Administration — please respond to this email.