I'm not seeing a lot of difference between a "social wealth fund" and a sovereign wealth fund, which Social Security isn't for the simple reason that custom dictates it isn't.

The beef everyone always has with sovereign wealth funds is whether or not they're disbursed well, and whether or not they're managed well. If you go down the list, pretty much all the big ones are "what do we do with the oil money." That's certainly where the Alaska Permanent Fund gets their cash; it's also every Gulf nation as well as Norway. It's also strange that he doesn't touch on pension funds. The only real difference is who gets paid out, the people who are retiring or the people who have yet to retire. Either way, the Alaska Permanent Fund is barely 1/5th the size of CalPERS... and what everyone bitches about with CalPERS is how well its managing its assets.

The issue you run into with "let's give everyone in the country a share" is you end up with a huge pile of assets that are managed by committee. That committee is subject to inertia, mismanagement, political cross-purposes and other impediments to "efficient markets" which means every other player in the market arbitrages the fund's inefficiency. This is how Soros broke the Pound. More recently, you get market perversions like the Swiss National Bank buying $90b worth of American stocks:

Some investment wonk pointed out that the Swiss National Bank was basically a hedge fund with the ability to print its own currency so why wouldn't you go as long as humanly possible into that?

Fundamentally, when you're bigger than the market the market is no longer fair. This can work to your advantage or to your disadvantage but when "you" is "the government of the United States" you can rest assured that every penny-ante congressman that has ever met a lobbyist is going to cutout bleeding points for the guys who buy him lunch. And this is why we have a complex tax structure: it's an attempt by all sides to make the system work through other means.

(And when "you" is the government of Malaysia things go so fucking crazy you end up paying for Psy to sing at Leonardo DiCaprio's birthday for some reason)