Ban Politicians from Stock Trading
What do you think of when you hear about the stock market? Who comes to mind when you consider stock trading? Do you tense up at the thought of setting money aside for retirement or does the possibility of a large return excite you? For me, I have always found comfort with numbers and logic in searching for trends. This is why I pursued an engineering degree from Michigan State and enjoyed the challenges of entrepreneurship. The nerves of risking my money with the research I had done was addicting. This is why from 2020-2023 I was proud to generate a total return of $48,556.77 from an initial investment of approximately $15,000.
"The most valuable commodity I know of is information" Gordon Gekko says to Bud Fox in the 1987 movie, Wall Street. Growing up, I was close with my parents, my dad especially, and he introduced me to the “classics” from his generation. The movie was my introduction to the stock market. The lingo, fast-paced environment, big money decisions, and ability to understand a multitude of industries fueled my fantasies. However, this is what the movie was - a fantasy. In the beginning, Gekko is portrayed as a financial guru making millions. In reality he was cheating by purchasing insider information to be confident in the “risks” he took. Insider trading is the illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information. Gekko, was caught performing insider trading to get an edge in order to make millions. Insider trading is something that members of Congress have been accused of doing and has been brought up while I meet with constituents. This is a big part of the eroding trust that the American public has with those that represent them.
Currently, America has groups in place that regulate politicians, and staff, from trading while in office. The SEC, Code of Conduct, Ethics Committees, and Financial Disclosure are all in place to bring transparency to politicians trading stocks while in office. The STOCK Act of 2012, was passed with tremendous bipartisan support to prohibit members of Congress, and staff, from trading on non-public information. Still, America continues to have instances where politicians are accused of trading stock with insider information thus resulting in the continued erosion of public trust.
There are many examples I can give to accusations of politicians possibly benefitting from decisions they made while serving the public. There are 78 examples of politicians violating the STOCK Act and not disclosing their stock purchases until months past their due date. This is an occurrence that happens with both parties.
In March of 2020, the world came to a stand still as Covid-19 brought the world to a screeching halt. Heavy restrictions were placed throughout the U.S. as the stock market experienced an overall 34% drop from February to March. This time period was one of the biggest market drops in history as fear for the duration of the pandemic, and heavy restrictions, spooked the market. It was a drop that hurt people’s portfolios, but was avoided by the lucky few. The “lucky few” were the Democratic and Republican politicians that sold their stocks in February of 2020 as they avoided the large dip the following month. It has been documented that these politicians received closed door briefings about the virus prior to making their stock market decisions. The case was ultimately dropped for a lack of incriminating evidence.
In the early 2000s, Americans experienced the unforgettable attacks of 9/11. When deciding how to respond, our leaders sat before the United Nations accusing Iraq of having Weapons of Mass Destruction (WMDs). Iraq was not involved in the horrendous 9/11 attacks, but we decided to invade based on the WMD claims. Claims that later came out to be completely fabricated. The war lead to trillions spent and thousands of lives lost. Billions were awarded to the defense contracting company called Halliburton and their subsidiaries. Our Vice President, Dick Cheney, had previously been the CEO of Halliburton. The decision to award billions of “no-bid contracts” to Halliburton was HEAVILY scrutinized by the public due to the conflicting interest.
I want it to be illegal for politicians, and their families, to trade individual stocks while serving in congress. The position comes with too much influence, and the sphere of influence makes it hard for politicians to avoid conflicting interest. I do not want to see Congress financially benefit from decisions they make while serving. For example, I support Congresswoman Rashida TIaib’s bill that would ban politicians profiteering from war. It is imperative for Congress to pass such legislation in order to build back trust with the public.
At this time, Hillary Scholten and my possible Republican opponents have not come out with such statements. Congresswoman Scholten has not stated her support for Tlaib’s “Ban Politicians Profiteering from War” bill.
