Pension funds should have a rule -- invest in technologies, industries and companies that create a deflation (by technology, scale, efficiency, etc). This will create better outcomes for pensioners. If they invested in cheaper housing, healthcare, pensioners can live without the constant fear of running out of money. The absolute first thing to invest in is clean energy which can be super cheap to zero to actually making money by supplying power back to the grid. Once energy is solved, it solves an entire spectrum of problems.Increasing the money(number), while making everything else costly (a lot more costlier in reality because of fictional inflation number) is not only hard to achieve, but even if achieved, doesn't mean much. ".S. Dollar itself has lost roughly 98% of its purchasing power over the long term" -- random Warren Buffett quote.
Galanwe|12 days ago
Usually it's not implemented as a rule though, but rather by creating tax cuts for certain kind of investments.
E. G. In France you get tax cuts if you invest in green energy, housing in poor neighborhood, and a trillion other subcategories.
pas|12 days ago
> For example, EU pension funds allocate just 0.02% of total assets to VC, compared with almost 2% for US pension funds. And this percentage is applied to a much larger asset base: over 140% of GDP in the United States compared with around 30% in the EU.
> In Europe, approximately €11.5 trillion is held in cash and deposits. This is one-third of households’ total financial assets. In the United States, the figure is around only one-tenth.
https://www.ecb.europa.eu/press/key/date/2024/html/ecb.sp241...
LorenPechtel|12 days ago