> It's not fair to people who buy government funds
Are you suggesting our government should prioritize investors who buy government bonds over its own citizens (who at least in theory, would have to pay for those bonds in the future with taxes)?
I am saying that money market funds that buy short-term treasuries ("government funds") have the same level of safety as insured deposits. Because of this safety, they have lower yields than prime funds which invest in unsecured short-term corporate debt.
It is unfair to the careful people who invest in government funds to bail out prime fund investors every time it looks like they might lose 0.5-1%.
Are you suggesting our government should prioritize investors who buy government bonds over its own citizens (who at least in theory, would have to pay for those bonds in the future with taxes)?