| | Mark Cuban Blasts 'Stupid' New Idea Floated by Trump and Biden
Published Sep 07, 2024 at 4:21 PM EDTUpdated Sep 08, 2024 at 7:44 AM EDT
By Natalie Venegas
Weekend Reporter
Billionaire and Shark Tank star Mark Cuban recently criticized a new idea of a sovereign wealth fund floated by former President Donald Trump and President Joe Biden as "stupid."
According to Bloomberg, top Biden aides are working on a proposal to establish a U.S. sovereign wealth fund, designed to invest in critical national security sectors. The initiative would focus on strengthening the country's technological edge, securing energy resources, and fortifying vulnerable supply chains.
The proposal, being worked on by national security adviser Jake Sullivan and his deputy, Daleep Singh, mirrors a proposal floated on Thursday by Trump, the GOP presidential nominee, who called for a government-owned investment fund to finance "great national endeavors" during a speech to the Economic Club of New York.
Sullivan and Singh have reportedly spent months brainstorming the framework, with planning documents circulating among key White House officials and agencies, Bloomberg reported. However, the project remains in its early stages with critical details still unresolved.
Cuban, a frequent critic of Trump, took to X, formerly Twitter, on Saturday to share his thoughts on the proposed sovereign wealth fund as he seemingly took aim at the former president.
"A Sovereign Wealth Fund, while a country is running a deficit, is stupid. Period, end of story. But only one of the people considering the wealth fund is running for President. If you think @KamalaHarris and Joe Biden think alike about financial strategies for the country, you are wrong," he wrote.
In a previous post on X on Friday, he made his thoughts on the idea of a sovereign wealth fund known, saying it "made no sense at all."
.( Plus, a "sovereign wealth fund" would be stolen by draft dodger serial sexual assaulter donnie. And Dems would turn it over to green companies to waste. )
"I hate the idea of a Sovereign Wealth Fund. If the government had a surplus. Maybe. But with a deficit, it makes no sense at all. Norway for example has a surplus in pretty much every category and I think they pull money from their oil revenue. Alaska I think returns money to citizens, so they have money to invest. That's very different from taxing someone at 10 pct or more so that you can earn less on the fund," Cuban wrote.
Mark Cuban is seen on April 10 in Miami. Cuban recently criticized a new idea of a sovereign wealth fund floated by former President Donald Trump and President Joe Biden as “stupid.” Megan Briggs/Getty Images
While Vice President Kamala Harris', the Democratic presidential nominee, stance on this idea is unclear, she has laid out her own economic agenda.
In New Hampshire this week, Harris called for higher taxes on upper-income households, bigger tax deductions for startup businesses, and greater financial assistance for first-time homebuyers.
Cuban's remarks on X come as a sovereign wealth fund of this nature would be an unusual step for the U.S. as it is more commonly associated with oil-rich nations like those in the Middle East. These countries typically use such funds to manage the surplus generated from natural resources.
According to the Sovereign Wealth Fund Institute, roughly 100 funds currently manage nearly $13 trillion in assets. That includes a handful of U.S. states including Alaska, Texas, New Mexico and others which have set up their own types of government-run funds initially financed by oil, gas and mineral resources.
Amid this year's election, Trump aims to implement the sovereign wealth fund at the federal level as he stated it would yield a "gigantic profit" that could help "pay down the national debt."
According to Bloomberg, the Biden administration is looking at the idea as a tool to counter global adversaries—especially China—by investing in critical industries and materials.
The proposal still faces significant hurdles as it would need congressional approval, which could lead to fierce debate over its funding. Conservative economist Douglas Holtz-Eakin questioned whether a sovereign wealth fund would address any real issues. "There's no merit to it, regardless of who proposes it," he told Bloomberg.
Critics further argue that such a fund could be used for politically motivated projects and would be difficult to fund as the U.S. grapples with a national debt that now exceeds $35 trillion.
Jared Bernstein, chair of Biden's Council of Economic Advisers, expressed caution, telling Bloomberg Television he would be "very wary" of a wealth fund. However, proponents of the idea believe the fund could be tapped to support emerging technologies.
Mark Cuban Blasts 'Stupid' New Idea Floated by Trump and Biden - Newsweek |
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