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When Politicians Profit From Stocks, We All Lose Trust (And Maybe Even Follow the Law Less)

Let’s be honest: most of us already don’t trust Congress much. But here’s something that might make you trust them even less—and maybe even feel a little less motivated to follow the rules they set.

A new study found that when Americans learn members of Congress are trading stocks (and making money off it), their trust in government takes a nosedive. Worse? It also makes people less likely to comply with laws.

Why does this matter?
Imagine you’re playing a board game, but one player gets to peek at the cards ahead of time. You’d call foul, right? That’s basically what’s happening here. When politicians trade stocks, especially in industries they regulate, it looks like they’re using insider knowledge to win. And nobody likes a cheater.

The study shows this isn’t just about ethics—it’s about practical consequences. If people think the system is rigged, they’re less likely to respect it. And when trust erodes, so does cooperation.

So what now?
Some lawmakers have pushed for bans or stricter rules on congressional stock trading. But until that happens, the damage might already be done. Every headline about a politician’s stock win chips away at public trust. And once that’s gone, it’s hard to get back.

Here’s the real question: if the people making the rules don’t seem to play fair, why should the rest of us?