Coinbase CEO Brian Armstrong has a bold idea: a US sovereign wealth fund that pays dividends to every American citizen. He believes this could help shrink the government while still allowing for necessary spending.
Shrinking Government, Paying Dividends
Armstrong argues that politicians often overpromise freebies to win votes, leading to bloated government budgets. He suggests a constitutional amendment capping government spending or a system to better align incentives. His solution? A sovereign wealth fund.
Every citizen would receive a share, with budget surpluses distributed as dividends. This “skin in the game” approach, he says, would encourage fiscal responsibility. Congress would even get a larger stake. He envisions the ability to temporarily increase spending during emergencies (like wartime) while maintaining long-term fiscal discipline.
Lean Government, Friedman’s Philosophy
Armstrong supports his proposal by referencing economist Milton Friedman, who advocated for a limited government focused on:
- Enforcing contracts and settling disputes.
- Maintaining domestic peace and protecting property rights.
- National defense.
Musk’s Involvement
Elon Musk, recently appointed to head the new Department of Government Efficiency (DOGE) by President-elect Trump, agreed with Armstrong, praising Friedman’s ideas. Trump’s DOGE aims to streamline government, cut wasteful spending, and restructure federal agencies. The appointment of Musk and Vivek Ramaswamy to lead this effort was announced last week.
