Bill Overview
Title: JARED Act
Description: This bill prohibits former political appointees from investing in a company in which a foreign principal has also invested within four years of initially communicating about the investment when the appointee was still a federal employee.
Sponsors: Rep. Beyer, Donald S., Jr. [D-VA-8]
Target Audience
Population: Former US political appointees and companies with foreign principal investment
Estimated Size: 4000
- The JARED Act targets individuals who have served as political appointees in the US federal government.
- The bill specifically addresses the investment activities of these former political appointees within four years of leaving their positions.
- There are several thousand political appointees in any given U.S. administration, but the number impacted further narrows as it restricts the subset who would potentially make qualifying investments involving foreign principals.
- It also indirectly impacts foreign principals who are looking to invest in enterprises with former US political appointees.
- The global context is limited since it primarily affects interactions between the US government appointees and foreign principals.
Reasoning
- The target population includes former political appointees, most of whom are likely financially stable and may not experience drastic changes in overall wellbeing due to the policy, unless their investment strategy heavily relies on foreign principal collaboration.
- The policy is unlikely to directly impact the broader US population, hence it's critical to capture a diverse set of political appointees for a comprehensive understanding.
- Given the budget constraints, the resources may primarily focus on monitoring and enforcing the policy for those whose investment activities are closely tied to prohibited actions.
- In a large part, the wellbeing scores for these individuals may not change significantly immediately but could vary as they adjust their long-term investment strategies.
Simulated Interviews
Retired Federal Lobbyist (Washington D.C.)
Age: 62 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 4.0 years
Commonness: 12/20
Statement of Opinion:
- I think the policy is generally wise. It helps maintain transparency and trust.
- I'm unlikely affected as I have had no intent to diversify my portfolio involving foreign investments.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Consultant on International Trade (New York, NY)
Age: 47 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 4.0 years
Commonness: 10/20
Statement of Opinion:
- My role involved international connections, so this policy limits some avenues but ensures ethical boundaries.
- It might limit some potential lucrative opportunities in the short-term.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 7 | 8 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 8 | 7 |
Tech Startup Advisor (San Francisco, CA)
Age: 35 | Gender: male
Wellbeing Before Policy: 9
Duration of Impact: 4.0 years
Commonness: 8/20
Statement of Opinion:
- The policy is crucial for fair governance but might impact dynamic global tech investments.
- I might miss out on some foreign-funded startup opportunities initially.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 9 |
| Year 2 | 8 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Corporate Lawyer (Chicago, IL)
Age: 55 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 15/20
Statement of Opinion:
- I'm supportive of increased ethical standards.
- I had no plans to make foreign-focused investments so it won't impact me much.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Financial Analyst (Los Angeles, CA)
Age: 43 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 14/20
Statement of Opinion:
- I am reassured by policies that enhance transparency.
- I am not directly affected since my financial moves don’t intersect with foreign investments.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Oil Industry Exec (Houston, TX)
Age: 50 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 4.0 years
Commonness: 6/20
Statement of Opinion:
- Being a former advisor, such restrictions ensure we don’t see quick cash grabs aligning with foreign collaboration.
- Investments in oil are largely big capital, this policy nudges certain collaborations slightly off my list for a few years.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 7 | 9 |
| Year 5 | 8 | 9 |
| Year 10 | 8 | 9 |
| Year 20 | 8 | 9 |
Academic Researcher in Economics (Boston, MA)
Age: 40 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 16/20
Statement of Opinion:
- The act seems reasonable for those who transition from policy roles to private ventures.
- My focus being research, I am unaffected in practice.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Entrepreneur (Miami, FL)
Age: 38 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 4.0 years
Commonness: 8/20
Statement of Opinion:
- The act reinforces necessary transparency.
- I'm somewhat deterred as this wraps in my core business strategy.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 9 |
| Year 10 | 8 | 9 |
| Year 20 | 8 | 9 |
Defense Contractor (Dallas, TX)
Age: 58 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 13/20
Statement of Opinion:
- I'm generally more focused on domestic contracts than foreign interests.
- The policy ensures policymakers remain unbiased which I support.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Tech Industry Consultant (Seattle, WA)
Age: 45 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 4.0 years
Commonness: 9/20
Statement of Opinion:
- This is good practice for integrity but slices away some potential growth markets for me.
- Limited exposure to overseas investments, so manageable impact.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 8 |
| Year 5 | 7 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Cost Estimates
Year 1: $5000000 (Low: $3000000, High: $8000000)
Year 2: $3000000 (Low: $2000000, High: $5000000)
Year 3: $3000000 (Low: $2000000, High: $5000000)
Year 5: $3000000 (Low: $2000000, High: $5000000)
Year 10: $2000000 (Low: $1000000, High: $4000000)
Year 100: $1000000 (Low: $0, High: $2000000)
Key Considerations
- Estimating the number of former political appointees who might engage in the prohibited investment activity is complex due to varied post-service careers and investment interests.
- Enforcement mechanisms and cooperation with existing financial regulatory bodies will be crucial to the bill’s effectiveness.
- Potential legal challenges to the conditions imposed by the bill, considering constitutional and contractual rights of affected individuals.