Grant Cardone, a motivational speaker and entrepreneur, made waves during his October 2023 appearance on Mike Tyson’s podcast, "Hotboxin’." While there to discuss business, Cardone took aim at politicians, particularly U.S. Rep. Nancy Pelosi.
It started with Tyson's co-host addressing how Cardone posted something online about how "poor politicians going into Congress and come out rich." His point? The vast wealth accumulated by some politicians compared to their official salaries. Cardone singled out Pelosi, claiming she’s never made more than $179,000 per year, yet her net worth is estimated to be around $120 million.
“If you do the math — most people just don’t do the math — she would have had to be in the Senate for 3,367 years to make that kind of money at her salary,” Cardone said.
Cardone highlights a common critique: A government salary simply cannot justify such wealth.
“If you make $179,000 a year, you will never be a millionaire, much less worth $120 million,” he said.
Tyson chimed in, suggesting that being in government might be a “cheat code” when it comes to accumulating wealth. Cardone agreed, implying that some politicians may be benefiting from undisclosed financial opportunities.
Cardone’s comments, while unsubstantiated about specific financial activities, point to a larger question: How do some politicians amass such wealth while serving in public office? This is a question that resonates with many Americans.
Cardone’s claims, while lacking evidence, raise an eyebrow and urge people to pay closer attention to the financial situation of their elected officials.
In 2012, the House of Representatives, controlled by Republicans, took aim at Pelosi through amendments to rapidly advancing ethics legislation. The amendments introduced additional restrictions to bar government officials from receiving preferential access to initial public stock offerings. A high-ranking aide from the Republican side stated that the amendments, referred to as the “Pelosi Provision,” were designed to enhance the Stop Trading on Congressional Knowledge (STOCK) Act.
Since the introduction of the STOCK Act in 2012, there has been scrutiny regarding its effectiveness in curbing insider trading in Congress. A decade after its enactment, the STOCK Act has been criticized for falling short of eliminating the appearance of corruption and ensuring that Congress prioritizes public interest over personal gains. The COVID-19 pandemic highlighted these shortcomings, as numerous members of Congress were investigated for insider trading after making stock transactions totaling over $150 million, often in companies likely to be impacted by the pandemic.
Despite its initial promise, the STOCK Act has faced challenges in achieving its goals. The consumer advocacy group Public Citizen’s analysis covering U.S. senators' stock trading activity from 2009 through 2015 indicates a significant decline in both the transaction values of stock trades and the number of stock transactions, suggesting that the STOCK Act has had an impact on reducing stock trading activity among senators. However, problems persist, such as senators continuing to trade stocks in sectors they oversee, and the weakening of the law's disclosure regime by Congress.
In response to ongoing concerns, there have been calls for further reforms to strengthen the STOCK Act. These proposals range from outright bans on stock trading by members of Congress to increased oversight of stock transactions. Such movements represent the most significant bipartisan efforts to reform the STOCK Act since its inception.