Congressional Stock Trades

Just say no.

We’re living in a period of political awakening, as more and more Americans realize all the ways that Wall Street owns Congress. The idea that our problems are simply too complicated to rein in is like a mist that’s parting now, exposing how many of them are direct results of the undue influence of money on our political system. This simple fact is no longer easy to ignore: as long as corporate money dominates our politics, the well-being of tens, perhaps hundreds of millions of people - and our democracy itself - will be at risk.

In the words of Bernie Sanders, “Congress doesn’t regulate Wall Street. Wall Street regulates Congress.”

Ed Jones

Our food is contaminated with carcinogens that are strictly regulated in other advanced countries. Why? Because of the influence of Big Ag and Big Chem. Our environment is degraded and growing more dangerous every day. Why? Because of the influence of Big Oil. Millions of people do not have health care. Why? Because of the influence of Big Insurance. Millions of people cannot afford their life-saving medicine, when remedies such as insulin are sold here at obscenely higher costs than in other countries. Why? Because of the influence of Big Pharma. And we undertake military actions both wrong-minded and costly, unnecessarily squandering the blood of our soldiers, the blood of others, and the moral authority of our nation. Why? Because of the influence of the defense industry.

Corporations are now more influential in Congress than is the will of the people, and that problem won’t end until we the people end it. Americans are not only waking up to this corrupt travesty, but are increasingly ready to do something about it.

There are two main ways that corporate America owns Congress. First, through money given in political donations and through dark money advertising dollars (difficult problem to fix, particularly with the Supreme Court Citizens United ruling that gave corporations unlimited power to influence elections). The second is through the ability of individual Congresspeople to own and trade stocks, a problem exacerbated by a legislator’s ability to attain information to which the ordinary citizen isn’t privy, as well as to influence legislation that benefits their own portfolios.

Congresspeople shouldn’t be able to go home at night and say to their spouses, “Hey, honey, guess what I learned today! Let’s call the broker tomorrow!” Being in Congress should not be a great way to get rich.

The good news is this: We’re moving beyond the “Duh” phase now, to “Dammit, we’re going to change this” phase. It’s starting to happen, and we all need to push it along.

Passions around this issue were sparked by House Speaker Nancy Pelosi, who, when asked whether Congresspeople’s spouses should be able to trade stocks, responded with a Wall Street-friendly certitude. “This is a free market economy” she said, “and they should be able to participate in that.”

Whoah, slow down Queen! (usually a complimentary term these days, but I’m not so sure in her case) came a chorus of voices from across the political spectrum. A grass roots response to this inherent conflict of interest is growing, meeting the challenge posed by a particular form of corruption now built into our governmental functioning.

Yes, Congresspeople already have to report their stock transactions (the Stock Act of 2012 demands disclosure). But disclosure is not enough. Congresspeople shouldn’t own stocks, or trade them, to begin with.

“But wait!,” you might say. “A lot of people wouldn’t even want to run for Congress anymore!” And yep, you betcha; that’s pretty much the point. People who are running the people’s business should not be profiting from it.

The problem is equally present among Democrats as well as Republicans, so this is an example of the real polarity in American politics: not Right versus Left, but the powerful versus the powerless, corporations versus the little guy. If short term corporate profits define the personal as well as political fortunes of our lawmakers, then any pretense of a government “of the people, by the people, and for the people” begins to “perish from the earth.” Lincoln said that wouldn’t happen… but isn’t it happening now? It is. And we must stop it.

Several proposals have been filed by lawmakers, including some with bipartisan support, that would keep members of Congress from benefiting financially from privileged information gathered in the course of their work. Current legislation proposed by Senator Jon Osoff of Georgia would ban all individual stock transactions by members of Congress, their spouses, and dependent children, requiring their stock portfolios be put into a qualified blind trust. Twenty-seven House members have signed onto a letter drafted by Rep. Jared Golden of Maine, calling on House leadership to bring forward legislation to ban members of Congress from owning or trading stocks. “Perhaps this means some of our colleagues will miss out on lucrative investment opportunities,” the members declared. “We don’t care. We came to Congress to serve our country, not turn a quick buck.” Two Republicans joined 25 Democrats in signing on to the letter.

Even Pelosi has now changed course, saying “If members want to do that, I'm okay with that.” Public pressure does mean something, and the Speaker struck a nerve when she so blatantly justified a system that unjustly enriches so few.

I know many people feel beaten down these days, looking at all the ways in which corruption is undermining our government, our wellbeing, and our future. It is exhausting, even infuriating, to see all the ways that people and institutions meant to protect us have become so often people and institutions we need protection from. But it’s also important to remind ourselves, as with this issue of stock trading among legislators, that there are excellent people pushing back in ways that matter. They need our help just as we need theirs.

The issue now will be getting such legislation as Senator Osoff’s to the floor and then passing it. We’re all going to have to make a lot of noise if that is what we want to make happen. When it comes to Congresspeople trading stocks, it’s time for all of them to just say no. But they’re going to have to hear us loud and clear when we say that. Money talks, but we’re going to have to talk louder.