What is it about?
This study examines the impact of learning that members of Congress are earning unusually high profits from stock trading. The findings suggest that awareness of this widespread practice undermines the perceived legitimacy of Congress and diminishes public willingness to comply with laws.
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Why is it important?
Our findings show that stock trading by members of Congress has serious negative consequences for democratic governance, undermining public trust and the perceived legitimacy of legislative institutions. This issue is especially timely in light of recent insider trading allegations and scandals, which have brought renewed public attention to the problem. To help restore faith in Congress, lawmakers should enact robust regulations on congressional stock trading—reforms supported by a strong bipartisan majority of Americans.
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This page is a summary of: Knowledge of politician stock trading reduces congressional legitimacy and compliance with the law, Proceedings of the National Academy of Sciences, May 2025, Proceedings of the National Academy of Sciences,
DOI: 10.1073/pnas.2501822122.
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