Second Anti-ESG Congressional Hearing: Lawmakers Continue Anti-Free Market Attacks

Second Anti-ESG Congressional Hearing: Lawmakers Continue Anti-Free Market Attacks • June 6, 2023

Today, the U.S. House of Representatives held their second hearing to advance anti-ESG attacks on America’s free market. Today’s hearing, which followed one last month that pushed conspiracy theories and nonsensical arguments, is a clear attempt to rekindle stalling efforts in the states to restrict investment decisions. For the Long Term Executive Director Dave Wallack provided the following statement:

“Anti-free market elected officials are doubling down on attempts to mislead the public about responsible risk management practices. The truth is simple — more information on risk means stronger returns for Americans’ retirement accounts. The restrictive, anti-capitalism laws seen across the country incentivize corporations to ignore risk and focus on short-term profit boosts, which is great for CEOs and ultra rich shareholders, but bad for retirees.

“If unchecked, this short-sighted movement to restrict the free flow of risk information will stifle long-term economic growth, cost taxpayers and retirees billions, and obstruct professional investors’ ability to protect Americans’ hard-earned savings from obvious risks. Congress should take note or risk causing a massive financial disaster.”

Memo: Ahead of the hearing, For the Long Term released a memo detailing the harm anti-ESG laws cause for retirees, taxpayers, investors, businesses, and communities, and the anti-free market and shortsighted thinking behind the movement. Read the memo here.

Background: Anti-ESG bills proposed in legislatures across the nation have been defeated or significantly weakened after alarms were raised over their costs to taxpayers and retirees. States like Indiana, Iowa, Kansas, Mississippi, North Dakota, and Wyoming have seen anti-ESG bills defeated or severely watered down. In Arkansas, Kansas, Indiana, Texas, Florida, Kentucky, Louisiana, Missouri, Oklahoma, and West Virginia, state pension systems and additional studies have estimated impacts from anti-ESG laws in the millions or even billions of dollars. The laws are facing backlash because they’re anti-free market, pose high costs to taxpayers, and they’re being pushed by special interest groups whose agendas are at odds with taxpayers and investors.

About For The Long Term: For the Long Term is a 501(c)(3) organization that supports state and municipal treasurers, comptrollers, controllers, and auditors in leveraging the power of their offices to deliver prosperity for their beneficiaries and their constituents and long term economic growth for our country by advocating for more sustainable, just, and inclusive firms and markets. Learn more at ForTheLongTerm.org.

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