alt Hacker NewsThis assumes everything can be paid in liquid public equity, which is often not the case in any private or offshore investment. Additionally, the government now owns stock they can't realize without by definition causing a stock market decline. Sell stock that previously wasn't on the market, you exhibit permanent downward pressure.
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> private or offshore investment.
I don't have a good solution for private investment, but for offshore public investment, you can have the same principle.
> Sell stock that previously wasn't on the market, you exhibit permanent downward pressure.
Which is a very, very good thing, to be clear. Because it lowers expectations of future returns, and make stock valuations not based on "i predict pension funds will automatically put their contributor money into those stocks", but on actual business information.
Why can't the government just own stakes in private and public companies? Put them into some kind of sovereign wealth fund. No need to sell at all.
At scale the government's holdings will be very diversified and relatively low risk. Almost like an index fund, but for the entire economy. They can use the dividend payments from these holdings to reduce income tax.