Insider Trading in US Politics
Insider trading refers to the practice of buying or selling securities based on non-public information. Some US politicians use their positions of power to access confidential information and trade securities for their own personal gain. They might even purchase stocks under the name of a family member to avoid disclosure requirements and to keep their investments confidential, commonly referred to as "beneficial ownership". This practice can make it difficult for regulators and law enforcement to track the source of the funds used to purchase the stocks and monitor potential conflicts of interest, impacting the political system by creating conflicts of interest and eroding public trust in government institutions. Insider trading can also negatively impact the general public by distorting the financial markets and allowing some individuals to profit at the expense of others.
...more about Insider Trading
There are several books, publications, and documentaries that can provide insights into how politicians enrich themselves by using insider information to make personal investments.
The first book that comes to mind is "Throw Them All Out" by Peter Schweizer. This book investigates the practice of "insider trading" by members of Congress and exposes the ways in which lawmakers have used their positions to make profitable personal investments.
There are several reputable publications that provide details about how politicians are getting rich off insider trading. Here are some examples:
ProPublica - ProPublica is a non-profit newsroom that produces investigative journalism in the public interest. They have published several articles on the issue of insider trading by politicians, including "Insider Trading Rules Don't Apply to Congress. Here's Why" and "How a Few Members of Congress Invested During the Pandemic."
The New York Times - The New York Times has published several articles on the issue of insider trading by politicians, including "Congress Trades on Insider Information" and "Two Congressmen, a Stock Sale and a Coronavirus Test."
The Wall Street Journal - The Wall Street Journal has published several articles on the issue of insider trading by politicians, including "Congress Members Bought and Sold Stocks as Pandemic Hit U.S." and "Senators Unload Stocks as Coronavirus Threat Looms."
Bloomberg - Bloomberg has published several articles on the issue of insider trading by politicians, including "Congress, Like Corporations, Can Profit From a Coronavirus Crisis" and "The Senator Who Dumped His Stocks Before the Coronavirus Crash Has Asked Ethics Officials to Investigate Himself."
There are also a few documentary that shine some light on the practice. A few are:
"60 Minutes" Segment: "Insiders" - This investigative report by CBS News' "60 Minutes" exposes the ways in which members of Congress have profited from insider trading and highlights efforts to address the issue.
"The Big Short" by Michael Lewis - While not specifically focused on insider trading by politicians, this book examines the 2008 financial crisis and exposes the ways in which Wall Street insiders profited from the crisis, highlighting the dangers of allowing insiders to profit from privileged information.
By reading these books, watching these documentaries, and following investigative reporting on the issue, individuals can gain a deeper understanding of the ways in which insiders can profit from privileged information and the dangers of allowing this practice to continue.
There are several actions that individuals can take to help prevent the practice of politicians using their insider knowledge to enrich themselves. Here are some examples:
Contact your elected officials - One of the most effective ways to bring attention to the issue of insider trading by politicians is to contact your elected officials and express your concerns. This can be done through phone calls, emails, letters, or social media.
Support organizations working to combat corruption - There are several organizations working to combat corruption and promote transparency in government, such as Common Cause, the Sunlight Foundation, and Citizens for Responsibility and Ethics in Washington (CREW). These organizations work to expose corruption and advocate for reforms to prevent abuse of power.
Advocate for stronger ethics laws and enforcement - Individuals can advocate for stronger ethics laws and enforcement at the local, state, and federal levels. This can include supporting candidates who prioritize ethics reform and working with advocacy groups to promote reforms.
Vote - Individuals can help to prevent politicians from using their insider knowledge to enrich themselves by voting for candidates who are committed to transparency, ethics, and public service.
Educate others - Individuals can help to raise awareness of the issue of insider trading by politicians by sharing information with others, engaging in discussions, and promoting transparency and accountability.
By taking these actions and supporting organizations working to combat corruption and promote transparency, individuals can help to prevent politicians from using their insider knowledge to enrich themselves and promote accountability and ethical governance.