U. of VA economics professor: Divestment is the wrong answer

From John Curry, September 2, 2007
Subject: from Dennis's cohort in the state of Virginia

The article below was written by a trustee of the Virginia Retirement System. He is also a professor of Economics at the University of Virginia. Mr. Burton discusses divestment in terms that even a layman can readily understand. John

Divestment is the wrong answer

It raises costs and false expectation of accomplishment

By Edwin T. Burton

Posted: August 6, 2007, 6:01 AM EST

Politicians have found a new way to lower future retirement benefits for employees covered by public pension funds — divestment. Divestment laws, proposed and enacted in various state legislatures around the country, require public pension funds to divest, meaning sell, all stock holdings in companies that do business in particular countries. The current list of countries includes Sudan, Iran, North Korea and Syria. Stay tuned for updates as this list is sure to grow. [Click here to read the rest of the article.]