Thought Control in Economics

Slow Down Fast Money With the Tobin Tax

By focusing on regulation and bonuses, are world leaders missing the point?
Fast Money

AP Photos – Charles Dharparak

In 1971 the late Nobel laureate James Tobin proposed enacting an infinitesimal tax on all cross-border currency trades. Though it could be as small as one-tenth of one percent, the tax would generate enormous sums of money due to the sheer volume of trades. A modern variant on the Tobin tax would levy an equally small tax on all market transactions. For the ordinary purchase of stocks and bonds, the cost would be trivial – with no perceptible effect on buyers or sellers. But for the more complex, highly-leveraged derivative transactions – the very ones that sunk our economy – the cost of the tax would add up quickly, helping to dampen speculative excess and temper the wild flows of global capital. It would break the cannibalistic cycle of derivatives feeding off derivatives and money feeding off money. And before long – trade by trade, dollar by dollar – the tax would steer our global system back on course … hard work and entrepreneurial zeal would become valuable commodities again.

French President Nicolas Sarkozy is urging his fellow G20 leaders to introduce a Tobin tax, but his initiative is being largely ignored. Send an email to Barack telling him we need systemic change ... tell him to take up Sarkozy’s proposal and start slowing down fast money with a Tobin tax.

– Kalle Lasn

20 comments on the article “Slow Down Fast Money With the Tobin Tax”

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lindzey123

As a part of this economy, I am willing to pay my taxes. But a part of it, is a hope that the money that I am paying as a return could help many people.

lindzey123

As a part of this economy, I am willing to pay my taxes. But a part of it, is a hope that the money that I am paying as a return could help many people.

perceptiventity

Mr. Kalle Lasn
as radical and relevant as some of your previous ideas might have been but please let us not be naive and (unwittingly one hopes) deceive the youngsters about a recent facelift that men living in white houses have had.

What you propose : " Send an email to Barack telling him we need systemic change … tell him to take up ..." is tantamount to writing a wish-list letter to Santa Claus. The puppet has its masters and they are not a couple of scientists that feature among presidential aides. The puppeteers are from wall street and international banking cartels.

Goldman Sachs is one of the chief donors for obamamania presidential campaign. Let us not be delusional

http://thepiratebay.org/torrent/4764748/The_Obama_Deception_by_Alex_Jones_Divx_697mb

perceptiventity

Mr. Kalle Lasn
as radical and relevant as some of your previous ideas might have been but please let us not be naive and (unwittingly one hopes) deceive the youngsters about a recent facelift that men living in white houses have had.

What you propose : " Send an email to Barack telling him we need systemic change … tell him to take up ..." is tantamount to writing a wish-list letter to Santa Claus. The puppet has its masters and they are not a couple of scientists that feature among presidential aides. The puppeteers are from wall street and international banking cartels.

Goldman Sachs is one of the chief donors for obamamania presidential campaign. Let us not be delusional

http://thepiratebay.org/torrent/4764748/The_Obama_Deception_by_Alex_Jones_Divx_697mb

Anonymous

At the very least, I think a Tobin tax would be a good political move... The air is ripe with discontent, directed mainly in the direction of investors and bankers. It might not stop the flow of derivatives but it would bring in large amounts of money to the treasury. With every state having fiscal crises, I'm sure this wouldn't be a hard idea to sell.

An idea for curtailing the use of derivatives might be to implement a graduated tax based on the number of times the securities in question are repackaged. The further an amount of money is traded away from its source, the higher the tax on the transactions. As it stands now, derivatives traders have massive incentives and no regulation. And whoever said the financial crisis was caused by gov't intervention needs to rethink the way they analyze economics...

Anonymous

At the very least, I think a Tobin tax would be a good political move... The air is ripe with discontent, directed mainly in the direction of investors and bankers. It might not stop the flow of derivatives but it would bring in large amounts of money to the treasury. With every state having fiscal crises, I'm sure this wouldn't be a hard idea to sell.

An idea for curtailing the use of derivatives might be to implement a graduated tax based on the number of times the securities in question are repackaged. The further an amount of money is traded away from its source, the higher the tax on the transactions. As it stands now, derivatives traders have massive incentives and no regulation. And whoever said the financial crisis was caused by gov't intervention needs to rethink the way they analyze economics...

Jamesy

Being part of the economy, I really don't mind paying my share of taxes, but in return I expect that it goes a long way to help the people that need it most. I for one think that the Tobin tax would be a good political move. Jami from mattress reviews.

Jamesy

Being part of the economy, I really don't mind paying my share of taxes, but in return I expect that it goes a long way to help the people that need it most. I for one think that the Tobin tax would be a good political move. Jami from mattress reviews.

WEs

They like to polarize this argument to prevent a reasonable solution...

It is not total free market or total government control that will work... it is somewhere in the middle.

Why should those making money on financial turnover, derivatives, hot money, etc not pay any sort of tax on their transactions when most other businesses and individuals do?

They don't even pay 1%!

We are not in danger of socialism we are in facism ... but the corps and interests in colusion with the gov are screaming socialism and the gov is screaming capitalism.... both of them are helping each other.

Tobin tax sounds good to me.

WEs

They like to polarize this argument to prevent a reasonable solution...

It is not total free market or total government control that will work... it is somewhere in the middle.

Why should those making money on financial turnover, derivatives, hot money, etc not pay any sort of tax on their transactions when most other businesses and individuals do?

They don't even pay 1%!

We are not in danger of socialism we are in facism ... but the corps and interests in colusion with the gov are screaming socialism and the gov is screaming capitalism.... both of them are helping each other.

Tobin tax sounds good to me.

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