Senator Cruz explains the Senate’s pushback against the Labor Department rule (2023)
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After the Senate vote on March 1 passing Congressional Review Act (CRA) resolution to rescind the Biden Labor Department rule permitting the use of ESG investing in ERISA-governed retirement plans, Texas Republican Ted Cruz went on Fox News to explain why he and 49 other senators opposed the Labor Department rule and why he believes ESG poses a threat to retirement savings and capital markets:
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Sen. Ted Cruz, R-Texas, joined "Varney & Co" on Thursday to discuss what impact the Biden administration's "politicization" efforts could have on Americans' investments. "This is your retirement that Joe Biden has said his politics matters more than your retirement, and he's perfectly happy for you to take the hit," Cruz said. GOP senators discussed the legislation during a press conference Wednesday, saying the Biden administration's move with the ESG rule had "a certain irony," given the administration's rhetoric of working for the American public. "And there's a certain irony here, since [the Biden administration] always billed themselves as actually caring about the person who's struggling. People are going to struggle more because of this rule," Sen. Bill Cassidy, R-La., said during the press conference. "This weaponizes their retirement accounts against both their future, but also their present," he continued. Cruz said Thursday that the ramifications on Americans' investment accounts would be detrimental, putting politics over helping Americans. "'Global ESG funds have underperformed the broader market in the past five years, returning an average of 6.3% a year, compared with 8.9% for broader funds, which means an investor who put $10,000 into an average global ESG fund in 2017 would have $13,573 today, roughly $1,720 less than if they'd put it into a non-ESG portfolio,'" Cruz said, quoting an article from Bloomberg. … "The Senate stood together with a bipartisan vote yesterday and reversed this and said you ought to be able to save for your retirement without politicians impacting and hurting your savings," Cruz said. Cruz claimed that the proposed ESG rule highlights a larger trend of politicization within the Biden administration, specifically the politicization of the Justice Department.[1] |
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See also
- Environmental, social, and corporate governance (ESG)
- Economy and Society: Ballotpedia's ESG newsletter
External links
Footnotes
- ↑ Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
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