Marketplace observes that one economic policy proposal this year’s major-party presidential candidates agree on concerns creation of a US sovereign wealth fund. “China, Norway and many countries around the Persian Gulf have them. The funds pool government revenue — often from oil and gas resources — and invest it in everything from stocks to office buildings, soccer teams to infrastructure projects. Neither the Trump campaign nor the Biden administration have offered many details about how exactly a fund like this would work in the States, though Trump has mentioned that a fund could invest in infrastructure.”
The article suggests Quebec’s Caisse de Depot et Placement du Quebec (CDPQ or “the Caisse”) could be a paradigm for a US fund. Strictly speaking, the Caisse is a pension investment fund that provides social security benefits for retired Canadians. “Unlike Social Security, the Caisse has acted more like a sovereign wealth fund, investing in stocks, private equity and real estate. However, it’s also a little different from big U.S. pension funds. It’s supposed to maximize returns, but also contribute to Quebec’s economic development. The Caisse had over $310 billion USD in assets last year.”