Staff Reports
The Biden administration is at it again, trying to keep its grip on the world of finance, all in the name of “wokeness.” Recently, the White House flexed its bureaucratic muscles against a House Republican bill aimed at limiting the use of woke investment strategies. This isn’t just a simple disagreement; it’s a tug-of-war over who gets to dictate what corporations disclose to their investors.
The proposal, affectionately titled the Prioritizing Economic Growth over Woke Policies Act, seeks to reign in the Securities and Exchange Commission (SEC) from forcing companies to reveal irrelevant information—like their board’s demographics or whether they’re planting trees instead of focusing on profits. Naturally, the White House’s Office of Management and Budget viewed this as an existential threat to the SEC’s ability to operate, claiming it would leave the door wide open for companies to decide what to disclose. Clearly, they believe that corporations should remain on a short leash when it comes to waking up to reality.
White House says anti-woke ESG bill would harm investorshttps://t.co/kc0ggXD9IH pic.twitter.com/E8fz1TV8Ge
— The Washington Times (@WashTimes) September 18, 2024
In a stunning display of irony, the administration claims that this bill would weaken protections for investors. The argument seems to center on the notion that if the SEC can’t compel companies to share their do-gooder agendas, investors won’t be in the loop. Apparently, it’s better for shareholders to be inundated with social justice proposals that have little to do with their investments than for them to have a clearer picture of the financial landscape they’re navigating. It’s as if they believe that ignorance is bliss—just as long as it aligns with their progressive ideals.
As the bill makes its way through the House Financial Services Committee, it takes direct aim at the Environmental, Social, and Governance (ESG) metrics that have been the darlings of far-left finance enthusiasts. These factors essentially argue that a company’s worth is tied as much to its social and environmental impact as it is to its profitability. This money pit has long been characterized as a way to push liberal causes through retirement plans, dragging hardworking Americans into the fray of political activism. And, spoiler alert: not everyone thinks that’s a good use of retirement savings.
The Biden administration, unwavering in its promotion of ESG, touts their approach as empowering workers to invest in both their financial future and various social causes. This seems to ignore the glaring conflict of interest that arises when employers are allowed to weigh societal considerations over the hefty returns that Americans expect from their 401(k) plans. In 2022 alone, a Labor Department rule gave the green light for companies to shuffle through employees’ retirement accounts based on climate, diversity, and even political leaning. Clearly, the goal is to create a utopia where profits take a backseat to progressive values.
The battle over this legislation emphasizes the divide in how Americans think about investing and the utmost responsibility of businesses to their shareholders. When it comes to finance, one has to question whether focusing on social causes is really the best way to ensure a secure future for retirees. The administration’s unwavering support for ESG investing serves as a rallying cry for conservatives who believe economic growth should trump all matters of contemporary moral philosophy.
