The ideological clash about how much control government should have over private companies was encapsulated yesterday in two Wall Street Journal op-ed pieces that many readers might find surprisingly contradictory. The first, written by Senate Majority Leader Chuck Schumer (D-N.Y.), rails against government intervention in corporate affairs; the second, by Republican Florida Gov. Ron DeSantis, justifies his anti-corporate actions.
These two pieces succinctly capture the tug-of war-between political parties over how to respond to the rising influence of the environmental, social and governance (ESG) ideology among the world’s largest corporations today. And they appear, on the surface at least, to mark a dramatic shift in the views of both conservatives and progressives regarding how far government should intervene into the affairs of private companies.
Under the heading, “Republicans Ought to Be All for ESG,” Schumer states his opposition to a GOP House bill, which would reverse a recently instated rule by the Department of Labor that allows pension fund managers to invest retirees’ money according to ESG criteria. According to Schumer, when it comes to ESG, a laissez-faire approach is best; it would be wrong for politicians to “tie investors’ hands” by limiting how fund managers invest pensioners’ money.
