This is a letter I sent to U.S. Senator Susan Collins of Maine on July 9, 2000. It is in reference to an EIGHT-month study her sub-committee did on day trading.
A link to the study report can be found at the bottom of my letter.
Dear Senator Collins:
This is in reference to your U.S. Senate sub-committee eight-month study into day trading.
I submit that you are wasting your time and my money; and have no constitutional authority to protect free people from doing stupid things with their money. An individual wasting money that he or she earns is certainly more honorable than state and federal representatives wasting money they—did not—earn.
Instead of having the Securities and Exchange Commission require day trading firms to “instruct” potential traders about financial risks, I recommend they publish a blanket warning. Perhaps a Senate resolution could warn everybody everywhere about every possible financial danger and risk. This one-time plan has wider coverage, provides greater relief for your conscience, saves more of my money, and allows you to move to some other Big Brother crusade.
Nobody forces me to spend money day trading or buying Microsoft products. The only entity forcing me to give my money to companies, groups, or individuals not of my choosing is government. Every time government grants a subsidy, restricts entry, collects a tariff, sets prices, guarantees wages, or attempts to protect us from ourselves: the free market becomes less efficient. It may not be obvious to some, but the last 70 years of world history prove that political and economic freedom work better for individuals than socialist state planning and control.
Please read Economics In One Lesson by Henry Hazlitt.
I don’t need government or the courts to tell me where or how to shop. If you really want to protect my pocket book, quit enriching others at my expense.