Status: Fresh argument I just came up with. I welcome any feedback! Allowing the U.S. Social Security Trust Fund to invest in stocks like any other national pension fund would enable the U.S. public to capture some of the profits from AGI-driven economic growth. Currently, and uniquely among national pension funds, Social Security is only allowed to invest its reserves in non-marketable Treasury securities, which are very low-risk but also provide a low return on investment relative to the stock market. By contrast, the Government Pension Fund of Norway (also known as the Oil Fund) famously invests up to 60% of its assets in the global stock market, and the Japanese Government Pension Investment Fund invests in a 50-50 split of stocks and bonds.[1] The Social Security Trust Fund, which is currently worth about $2.9 trillion, is expected to run out of reserves by 2034, as the retirement-age population increases. It has been proposed that allowing the Trust Fund to invest in stocks would allow it to remain solvent through the end of the century, avoiding the need to raise taxes or cut benefits (e.g. by raising the retirement age).[2] However, this policy could put Social Security at risk of insolvency in the event of a stock market crash.[3] Given that the stock market has returned about 10% per year for the past century, however, I am not very worried about this.[4] More to the point, if (and when) "transformative AI" precipitates an unprecedented economic boom, it is possible that a disproportionate share of the profits will accrue to the companies involved in the production of the AGI, rather than the economy as a whole. This includes companies directly involved in creating AGI, such as OpenAI (and its shareholder Microsoft) or Google DeepMind, and companies farther down the value chain, such as semiconductor manufacturers. If this happens, then owning shares of those companies will put the Social Security Trust Fund in a good position to benefit from the economic boom and distribute those gains to the public. Even if these companies don't disproportionately benefit, and transformative AI juices the returns of the stock market as a whole, Social Security will be well positioned to capture those returns. 1. ^ "How does GPIF construct its portfolio?" Government Pension Investment Fund. 2. ^ Munnell, Alicia H., et al. "How would investing in equities have affected the Social Security trust fund?" Brookings Institution, 28 July 2016. 3. ^ Marshall, David, and Genevieve Pham-Kanter. "Investing Social Security Trust Funds in the Stock Market." Chicago Fed Letter, No. 148, December 1999. 4. ^ "The average annualized return since [the S&P index's] inception in 1928 through Dec. 31, 2023, is 9.90%." (Investopedia)