-----Original Message----- From: Doug Henwood <dhenwood at panix.com> To: lbo-talk at lists.panix.com <lbo-talk at lists.panix.com>
>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?
In general, although I was talking about tendencies and priorities for investment on an x-y graph (if we are going to be particular). Auto plants in Mexico are high capital, low-wage and there are of course many high skill service industries with low capital costs.
The point is that the highest returns for a government, wage-tax funded system are not the same as for an individual investor.
--Nathan