Portland social-investment policy would be wrong recipe: Editorial

– Oregonian Editorial Board

In the classic 1970s commercial, two kids sit at a table with a bowl of cereal that’s “supposed to be good for you,” but they’re afraid to taste it. Finally, they arrive at a solution. “Let’s get Mikey. He will eat it. He eats everything.” Mikey, of course, likes the new cereal.

When it comes to progressive policy experiments, Portland plays the role of Mikey. Today’s good-for-you dish is socially responsible investing. And Commissioner Steve Novick, the council’s designated Mikey, has declared that the new policy tastes good…

First, let us say that there’s nothing wrong with socially responsible investing…if you’re socially conservative you can avoid companies that sell tobacco or alcohol…Similarly, progressives can avoid companies that sell fossil fuels…What tastes good to you might come at the cost of lower investment returns, but it’s your choice to make.

However, since the city gets its money mostly from taxpayers, it would be applying a social-investing screen to other people’s money.

Our Response & Your Comments

We’re all in with the Oregonian on this issue. It’s simple: Do what you want with your own money. Stick it all in stocks & bonds of companies that save the Spotted Owl if that’s your cup of tea.

But when you’re investing money that taxpayers have earned and you’ve confiscated, your sole obligation is to return to the people whose money you grabbed the highest legal return without taking inordinate risk – because IT’S NOT YOUR MONEY.

Got that, Commissioner Novick and other Oregon elected officials? We suggest that you carve it into your desktops so you don’t forget it.

http://www.oregonlive.com/opinion/index.ssf/2014/08/portland_social-investment_pol.html

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