>If we are looking at 1-2% of SS funds being in such mutual funds, they
>could become quite serious players in pushing sociallly responsible
>investments.
If the wage earner funds failed so dismally in Sweden, why should SS funds in the U.S. have any positive political effect? They will be run along socially "neutral" profit-maximizing prudent-person lines. And it will become national policy to push the stock market higher, which means there will be strong incentive to increase the profit share at the expense of labor's share.
>One other kicker to this debate that few mention is that Social Security
>invested funds, unlike normal investments, should not follow traditional
>fiduciary rules of looking for the highest return. Given the choice
>between capital-heavy, low-wage industries and labor-heavy, high-wage
>industries, Social Security funds should be invested in the later for the
>simple fact that promoting the later itself increases the FICA taxes paid
>back into the system.
Aren't most capital-heavy industries high wage and labor-heavy ones low wage?
Doug