Vanguard's ESG fund is a purely private sector market-based affair so I'm not sure what kind of government regulation you're referring to.tomfoolery wrote: ↑Thu Dec 17, 2020 12:04 amIf companies and their shareholders can make more money being socially and ecologically responsible then why do we need government regulation at all?
It seems like a mutually exclusive ideology. If you believe we need government regulation then investing in socially responsible companies is done with the expectation of getting reduced return. Or if you think you can “beat the market” by investing in socially responsible companies then you should be against government regulation since the free market would realize all the excess profits to be has by “doing the right thing”
But this very thread is an example of how prejudice and ideology get in the way of the kind of neutral and rational profit-maximizing that you believe will happen organically. ESG funds have consistently beaten the broad market for years, yet this thread is full of unsupported opinions about them which are completely disconnected from reality. They are assumed to lag the broad market when the opposite is true. They are assumed to have some connection to government regulations and mandates yet their emergence is a 100% private, market-based happenstance. And so on.
Believers in the utility and morality of a free market economic system should seek out sources of information that are as clear and factual as possible, and always be open to new information. Without this the price and information signal mechanisms of the market don't actually work for them.