How Politicians Profit While Americans Struggle
Introduction
In a nation where millions live paycheck to paycheck,
where homelessness is no longer a distant tragedy but a local reality, and
where wages stagnate while corporate profits soar—there exists a quiet scandal
that rarely makes headlines: politicians profiting from insider trading.
Power and Profit: A Dangerous Mix
Members of Congress have access to sensitive,
market-moving information long before the public. From defense contracts to
pharmaceutical approvals, their committee meetings and briefings often contain
the kind of intelligence Wall Street would pay millions for. And some
politicians don’t just sit on this information—they trade on it.
This isn’t speculation. It’s documented. It’s systemic.
And it’s largely unpunished.
The STOCK Act: A Toothless Shield
In 2012, Congress passed the STOCK Act, requiring
lawmakers to disclose their trades within 45 days. It was hailed as a victory
for transparency. But over a decade later, it’s clear the law is more symbolic
than effective.
Violations are rampant:
·
Over 60 members of Congress violated the STOCK
Act in recent years.
·
Trades worth millions were disclosed months or
even years late.
·
Fines? Often just $200, and frequently waived.
There are no bans on trading individual stocks. No
meaningful oversight. And no real consequences.
Known Cases, Weak Punishments
Let’s name names:
·
Rep. Rick Allen (R-GA): Up to 6.5 years late
reporting trades worth $8.5 million.
·
Rep. Pat Fallon (R-TX): Disclosed $17.5 million
in trades months late.
·
Sen. Tommy Tuberville (R-AL): Late on 130
trades.
·
Rep. Diana Harshbarger (R-TN): Failed to report
700 trades worth up to $10.9 million.
These aren’t isolated incidents. They’re patterns. And
they reveal a culture where greed is normalized, and ethics are optional.
Pump-and-Dump Politics?
While no politician has been formally charged with a
pump-and-dump scheme, the behavior of some—like Donald Trump hyping and
crashing markets via social media—raises serious questions. When a former
president tweets “THIS IS A GREAT TIME TO BUY!!! DJT” after tanking markets
with tariff threats, it’s hard not to see the manipulation.
A Moral Call to Action
This is not just about legality. It’s about morality.
While politicians quietly enrich themselves, teachers work
two jobs, veterans sleep on sidewalks, and families ration insulin. The
contrast is grotesque. It’s a betrayal of public service. And it’s a symptom of
a deeper rot: a political culture that rewards self-interest over service,
wealth over wisdom, and greed over governance.
We must demand:
·
A ban on individual stock trading for all
elected officials.
·
Real penalties for violations.
·
A renewed commitment to ethical leadership.
Because until we hold power accountable, the suffering of
everyday Americans will remain the cost of political luxury.
About the Author
Daryl Horton is a technical and creative writer who is
passionate about being creative. He has comprehensive training in business
information management, information systems management, and creative and
technical writing. Daryl has the knowledge and skills to help organizations
optimize their performance and maximize their potential. He spent several years
in a Knowledge Management PhD program at Walden University, nearly completing
it, but resigned from the program during his dissertation phase to pursue his
passion for creativity (http://www.abolitic.com/). Despite his love for
creativity, he often finds himself participating in groups where his technical
experiences add value.
You can find more information about Daryl Horton on his LinkedIn page at https://www.linkedin.com/in/darylhorton/.
Resources
STOCK Act Violations and Weak Enforcement
Newsweek: Members of Congress Who May Have Flouted the STOCK Act
Raw Story: 62 Members of Congress Violated STOCK Act
Truthout: Investigation Finds 48 Members Violated STOCK Act
Campaign Legal Center: Complaints Against Seven Members
Insider Trading Scandals Involving Politicians
Wikipedia: 2020 Congressional Insider Trading Scandal
DOJ: Former Congressman Christopher Collins Sentenced
NBC News: Stephen Buyer Sentenced for Insider Trading
Pump-and-Dump Allegations and DOJ Case
DOJ: $214 Million Seized in China Liberal Education Holdings Fraud
FOX 32 Chicago: 7 Indicted in $214M Pump-and-Dump Scheme
Trump’s DJT Stock and Market Manipulation Allegations
Outlook Business: Trump’s ‘Buy Now’ Tweet Sparks Allegations
Firstpost: Allegations of Market Manipulation Amid Tariff Pause
Proposed Reforms: ETHICS Act
Congresswoman Jen Kiggans: ETHICS Act Announcement
Congress.gov: ETHICS Act Bill Text (S.1171)
Campaign Legal Center: ETHICS Act Could End Stock Trading Scandals