President Donald Trump signed an executive order on Feb. 3 establishing a government-run sovereign wealth fund (SWF) within the next 12 months. Following in the footsteps of other countries in Asia and the Middle East, the latest executive action will serve as an economic development instrument, deploying taxpayer resources directly into investments. Economists and personal finance experts are already crying foul over the idea of an indebted nation using taxes to invest in, let’s say, TikTok. Is it a sound fiscal strategy?
Sovereign Wealth Fund – What Happened
While the executive order was short on details, it directed the Commerce and Treasury departments to present blueprints to craft a fund within 90 days. These efforts will include proposals for “funding mechanisms, investment strategies, fund structure, and a governance model.” He told reporters…
