So lemme get this straight. It’s okay for congresspeople to choose winners and losers in the private sector. It’s just not okay for them to trade stock related to the firms they picked to win and lose. And it’s not okay because it might tempt them to pick winners and losers based on stocks they already hold. So if we ban and prosecute “insider trading,” we can be sure a congressperson will never make a decision on which firm should win and lose that’s influenced by what benefits the congressperson.
When Congress subverts the process of creative destruction and blunts competition’s wealth-creating forces through corporatist favorite-picking the American economy suffers both immediately and in the future through economic uncertainty. What do insider trading rules do about that?
Insider trading rules are akin to telling an axe murderer he can still chop people up, but he just can’t eat them.