Elon Musk, the current head of the Department of Government Efficiency (DOGE), has recently announced his intention to investigate the inexplicable wealth accumulation of certain members of Congress.
Despite their base salaries falling under $200,000, many have amassed fortunes that raise eyebrows and questions.
Musk made these comments during a rally in Wisconsin, where he was supporting state Supreme Court candidate Judge Brad Schimel. "A lot of strangely wealthy members of Congress - where I just can't - I'm trying to connect the dots of how did they become rich," Musk expressed to the crowd. He further questioned, "How'd they get $20 million if they're earning $200,000 a year? Nobody can explain that." Musk's commitment to uncovering the truth was clear as he added, "We're gonna try to figure it out and certainly stop it from happening."
According to RedState, the current regulations allow members of Congress to purchase and trade stocks and cryptocurrency, as long as they report all transactions. The base salary for Senators and Representatives is $174,000 per year, with some exceptions for positions such as the Speaker of the House ($223,500), the President pro tempore of the Senate, and the majority and minority leaders in the House and Senate ($193,400). However, the net worth of some members of Congress far exceeds these salaries, reaching into the $100-$200 million range.
The controversy surrounding this wealth accumulation largely stems from accusations of insider trading. In 2023, Sen. Josh Hawley (R-MO) introduced legislation, dubbed the "Preventing Elected Leaders from Owning Securities and Investments" or PELOSI Act, which aimed to ban lawmakers in Congress from making stock purchases or trades.
The Act was named in part due to the significant combined net worth of Speaker Nancy Pelosi and her husband, Paul Pelosi, which is close to $250 million. Tulsi Gabbard, the Director of National Intelligence, has previously criticized the Pelosis' trading acumen, arguing that it is evidence of a "rigged" system.
Gabbard has stated, They can see, OK, here are the industries or companies that will benefit from this. Im going to go and make these investments, buy this stock or that stock, or have my husband or wife do it and then make money in the process.'
Despite these criticisms, Pelosi has consistently defended the right of members of Congress to buy and trade stocks, citing the free-market economy. She has, however, insisted that lawmakers should abide by the STOCK Act and disclose their transactions.
Pelosi is not the only one who has benefited from this system. Other congressional members have also had remarkable success in beating the stock market, raising further questions about the use of insider knowledge.
In 2021, a report by Business Insider titled Conflicted Congress, revealed the numerous ways members of the US House and Senate have compromised their own ethical standards and avoided consequences for questionable financial transactions. The report suggested that lawmakers had blinded Americans to the many moments when their personal finances clash with their public duties.
Despite bipartisan efforts to halt the practice of trading stocks for members of Congress, these initiatives have consistently stalled. With Musk and his DOGE team now stepping into the fray, it remains to be seen whether they can finally put an end to this controversial practice.
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