Trump wants a U.S. wealth fund that surpasses Norway’s. Some Norwegians aren’t sold. – msn/WaPost
“Beyond the differences in investment philosophy, Norwegian economists are skeptical of the idea that a country in large debt should follow Norway’s path. Norwegian law forbids the use of debt for its fund. You don’t have to have a budget surplus to run a wealth fund: Heavily indebted Britain recently announced plans for National Wealth Fund, though its funding is relatively modest at $9.4 billion. However, borrowing money comes with costs that could undermine the benefits of a profit-seeking fund.
“In the United States, where relatively few energy resources are federally owned, a Norway-style oil fund is hard to imagine. Some government-run funds operate at the state level: Alaska’s Permanent Fund uses the state’s oil revenue to provide an annual payment to residents, for example.”
More on national wealth funds can be found on pp. 16-22 of this paper:
High levels of debt pose an additional challenge to governments seeking to set up a wealth fund or pre-fund public programs.
