Back to NewsCongress Buys War Stock Ahead of Israeli-Hamas Conflict
THE GIST
As the conflict between Israel and Hamas has heightened over the past week, members of congress have been buying stock in weapons, fossil fuels and cyber security sectors.
Yes!! We should not be surprised, but we should be angry and ashamed. The details of who is buying what are important, but the general ability of any member of congress to profit from purchases or sales tied to inevitable policy votes is an obvious, dangerous conflict of interest.
WHAT ARE THE BROAD STROKES?
Unfortunately, this is nothing new. Congress has been getting rich through trades inspired by insider info for decades (see our page on Corruption in Congress). In December of 2021, Business Insider’s “Conflicted Congress Project” reported that 239 members of congress and staffers had violated conflict-of-interest laws, with many more guilty of rampant, unethical stock trading and financial activity that 75% of Americans believe should be illegal.
Between 2019 and 2021 at least 97 members of congress bought or sold stock in companies that would be directly influenced by law making in the actual committees they belong to.
Profiting specifically from war is also nothing new in Congress. At least 20 members of congress invested in weapons contractors just before approving a $40 billion aide package to Ukraine in May of 2022.
Defense contractors are among the largest political donors in the US. The defense industry spent $101 million lobbying congress through the first three quarters of 2022 alone. Among them were Raytheon and Lockheed Martin, which are investment favorites in congress among both democrats and republicans.
As is the case with all business sectors, U.S. weapons makers help fund the campaigns of our politicians, then lobby these same officials to the tune of tens of millions a year after they are elected. As soon as these elected officers get wind that a conflict is brewing, they buy up stock in the companies who funded their campaigns and who lavishly lobby them, knowing that war is good for business (and their pocketbooks).
HOW ARE WE, THE VOTING PUBLIC AFFECTED?
WHAT SHOULD WE DO?
The donor, lobbying, and stock trading circle in congress, as a standalone issue warrants our distrust of the officials we expect to represent our needs and wishes in government. Imagine walking into Congress Casino, only to find that the dealers you expect to be impartial are not only in the game themselves, placing bets, but are also stacking the deck in their favor right in front of your eyes! What would you do? Would you stay and give them your money? Of course not!
The corruption is so simple and so bold that it makes any analogy seem ridiculous. Join us in demanding not just a ban on congressional stock trading across sectors, but also the implementation of blind trust mandates for all members of congress while in office.