Vivek Ramaswamy is sounding the alarm about the reckless decisions of Democrats in blue states. Specifically, their use of other people’s money (OPM) to advance their agendas through the use of Environmental, Social and Governance (ESG) criteria in investing.
This is a devious and dangerous game for capitalism and democracy. Ramaswamy recently sparred with New York City Comptroller Brad Lander on CNBC’s “Last Call” about the city’s plan to net zero carbon emissions by 2040.
“I am frankly worried about the pension plan participants in the funds because fossil fuel companies dramatically outperform the S&P by almost 80% and they outperformed the very ESG funds that divested from fossil fuel companies by nearly 100%,” Ramaswamy said.
Vivek pointed out that fossil fuel companies dramatically outperform the S&P 500 index by almost 80%, and even outperform the ESG funds that divested from fossil fuel companies by nearly 100%.
“And yet,” he said, “these ESG plans, including, with respect to Brad, the one released by New York City, calls for divesting from exactly the sectors that even over the last 12 months have dramatically outperformed.”
Ramaswamy further argued that it is not the proper role of any pension fund manager or anybody overseeing pension funds to use the capital to advance these agendas. He believes that these decisions are best left up to the voters to decide.
Critics of ESG have cited crises in Sri Lanka and Ghana, who both suffered from the introduction of ESG policies. Missouri announced it was pulling all assets from BlackRock in October due to the company’s push for ESG, and four other states followed suit.
“If you want to go to the public as voters and say as citizens do you want to make the sacrifices needed to fight what I think is the current premise of climate change, it is up to the voters to decide, but not the proper role of any pension fund manager or anybody over seeing pension funds to use the capital to advance this,” Ramaswamy, a long-time critic of the use of Environmental, Social and Governance (ESG) criteria in investing, said.
ESG, also known as “sustainable investing,” according to the Corporate Finance Institute, can factor in corporate policies on gun control, environmental issues, abortion or other issues in addition to or instead of strictly looking at a corporation’s profitability.
“I think you should use your own money, but political actors in blue state pension funds that are using OPM – other people’s money – to advance agendas that they couldn’t pass through the front door through the legislative process and I think that is a devious and dangerous game for capitalism and democracy,” Ramaswamy continued.
Vivek Ramaswamy’s warnings about the dangers of blue state Democrats’ reckless spending on senseless agendas should not be taken lightly. With OPM being used to advance their agendas, it is vital that citizens be informed of the risks and consequences of these decisions.
I can’t believe lawmakers are pushing manufacturing to move over to electric while the US struggles under crippling inflation. I don’t know many families who could drop $80k on a new vehicle just to stay in compliance with the left’s agenda. Do you?
