U.S. Sovereign Wealth Fund was created by Executive Order, and it could be used to purchase TikTok.
What in the world is this new U.S. Sovereign Wealth Fund, and do we want to use it to buy TikTok?
Donald Trump and his administration have been incredibly busy—perhaps the understatement of the decade. The President has signed a record-breaking number of Executive Orders (EOs), shuffled key personnel, secured our borders, and started deportation. He’s made Women Female Again. We are also seeing the Senate hold hearings and votes on his nominees, with more to come this week.
Now, Trump has signed an EO to establish a U.S. Sovereign Wealth Fund, which could be used to purchase TikTok. That raises a major question: If this fund buys TikTok, does that mean the U.S. government would own a social media platform? It certainly seems that way.
President Donald Trump on Monday signed an executive order that outlines plans for a government-run sovereign wealth fund to serve as an economic development tool and perhaps be used to buy TikTok.
Among the aims for the fund would be developing infrastructure such as airports and highways, and it could help the U.S. extend its influence in areas such as Panama and Greenland. – CNBC
I can’t be the only one who thinks this is a bad idea, right? I get that people love TikTok, but should our own government really be the one to buy it? No thanks. But we also don’t need Elon Musk taking it over. He already bought X—which, to be fair, I appreciate—but another major platform under his control? No way.
Maybe it’s time for a different billionaire to step up and take this one. Mark Zuckerberg already has Meta, Jeff Bezos dominates with Amazon, and Elon Musk owns X—so why not let Nicole Shanahan take a shot at TikTok? I’d be totally on board with that—heck, I might even create an account!
Whatever one thinks of a sovereign wealth fund, the U.S. government should not hold any interest in media properties, including social media sites like TikTok. https://t.co/TMnLl3Me6h
— Gordon G. Chang (@GordonGChang) February 3, 2025
So what is this U.S. Sovereign Wealth Fund anyway? I asked AI to explain it to me like I was in 3rd grade. Here is what came back.
Imagine you have a big piggy bank where you put extra money you get from things like chores or gifts. Now, instead of just letting the money sit there, you decide to use it to buy things that can make you even more money—like a lemonade stand or a toy that you can rent out to your friends.
A U.S. sovereign wealth fund would work kind of like that piggy bank, but for the whole country. The government would take extra money from certain places (like taxes or selling things it owns) and use it to buy things that could make even more money—like businesses, land, or stocks. The idea is that this money would grow over time and help pay for things the country needs.
In this case, some people are talking about using that money to buy part of TikTok, the app where people make fun videos.
I also asked AI where this “extra” money to put into the Fund would come from and it told me that was a great question.
The U.S. government would need to find money to start the sovereign wealth fund, and there are a few possible ways they could do that:
- Profits from Government Assets – The government owns land, buildings, and other valuable things. It could sell or rent some of these to put money into the fund.
- Taxes or Fees – The government could create a new tax or fee to collect extra money specifically for this fund. For example, some countries use taxes on oil or other natural resources to fund their sovereign wealth funds.
- Profits from Investments – If the government invests in businesses or technology and those investments make money, that money could go back into the fund to grow it.
- Debt (Borrowing Money) – The government could borrow money to start the fund, hoping that the investments it makes would bring in more money later.
Right now, it’s unclear where the U.S. would get the money to fund this new initiative. Congress would need to approve the plan, determine how much to allocate, and decide where the money would come from.
But how is this different from the budget we already have?
Think of a sovereign wealth fund as more of a savings and investment account rather than a spending plan. Instead of using the money immediately, the government would invest it in businesses, land, or other valuable assets to generate more wealth over time. The goal is for the fund to grow and eventually help finance government expenses without relying solely on taxes.
In short, while the budget is about spending, a sovereign wealth fund is about investing for the future. Although, we are so far in the red with our budget, how we save any money is beyond me. But we Americans can walk and chew gum at the same time.
I’m not opposed to this Sovereign Wealth Fund. From what little I’ve read about it, it sounds like a decent idea, but I’m not sure I want to purchase TikTok with it.
Someone call Nicole Shanahan and ask her to buy it. I’m sure she’d be open to it.
Feature Image: Created in Canva Pro
