In the halls of the U.S. Capitol, where lawmakers craft policies that shape the nation’s economy, a persistent ethical dilemma looms: the ability of members of Congress to trade stocks while possessing privileged, non-public information. This practice raises serious concerns about insider trading, where legislators can leverage insights from committee briefings, closed-door meetings, or upcoming legislation to achieve returns that often outpace the broader market. Studies have shown that congressional portfolios frequently beat benchmarks like the S&P 500, with average returns for Democrats at 31% and Republicans at 26.1% in 2024, compared to the index’s 24.9% gain.

Such advantages not only fuel (correct) perceptions of corruption but also undermine public confidence in government institutions, where trust is already at historic lows. The core issue stems from the inherent conflicts of interest.

Politics_And_Law

econ

By Joseph Solis-Mullen

> In the halls of the U.S. Capitol, where lawmakers craft policies that shape the nation’s economy, a persistent ethical dilemma looms: the ability of members of Congress to trade stocks while possessing privileged, non-public information. This practice raises serious concerns about insider trading, where legislators can leverage insights from committee briefings, closed-door meetings, or upcoming legislation to achieve returns that often outpace the broader market. Studies have shown that congressional portfolios frequently beat benchmarks like the S&P 500, with average returns for Democrats at 31% and Republicans at 26.1% in 2024, compared to the index’s 24.9% gain.

> Such advantages not only fuel (correct) perceptions of corruption but also undermine public confidence in government institutions, where trust is already at historic lows. The core issue stems from the inherent conflicts of interest.