Commentary
President Joe Biden’s Labor Department recently announced a new rule that will permit money managers to play politics with trillions of dollars of people’s retirement savings.
The administration is pushing environmental, social, and governance (ESG) investing, which allows retirement fund managers to select stocks of companies based on their positions on social and environmental issues.
Put simply, retirement savings will be used as leverage to force companies to reduce their carbon emissions and establish racial and gender quotas and other social justice fads completely unrelated to securing a high return on workers’ lifetime savings.
For example, to reduce greenhouse gases, money managers have divested in traditional oil and gas companies such as Exxon or Chevron. How has that worked out so far? Last year, these were two of the highest-performing stocks….