>You can't invest the same way as Vanguard and Blackrock at nation state scale You can, it's just that current consumption is fulfilled by current production.

>You can't invest the same way as Vanguard and Blackrock at nation state scale You can, it's just that current consumption is fulfilled by current production. Current production gets allocated to some combination of return to labor, return on capital, and taxes. All else equal, the state owning more capital will just squeeze out some combination of return to labor and return on capital. If you look at the cash flows, there's no difference between the government owning 1% more of your employer vs taxing an extra 1% of the company's overall value. The biggest practical consideration is that taxation is a much more visible way of paying for benefits for current retirees, so replacing that with less obvious means is more politically viable.