Cut Wall Street Down to Size With a Financial Speculation Tax

If you want to transform the economy, you have to cut Wall Street down to its proper size. One way to do that is to tax the short-term speculative activities that dominate and distort financial markets.


  • Reimagining Capitalism
  • Construction work

Slide Show: 16 Bold Ideas for a New Economy
Nation Conversations: Mark Sorkin and William Greider on Reimagining Capitalism

We Recommend

True economic recovery will require creative solutions to deeply rooted problems. Our first great task is to change the way we talk about what’s possible.

About the Author

Sarah Anderson
Sarah Anderson directs the Global Economy Project at the Institute for Policy Studies and is a co-author of the report…

Also by The Author

In confusing times like these, it’s important to keep the story straight.

Pay-Cap Populism (Ethical Economics, Economy)

Excessive executive pay endangers our public well-being as surely as any pollutants. Obama’s $500,000 pay cap is just a start at fixing the problem.

For ordinary investors, the costs would be negligible, like a tiny insurance fee to protect against crashes caused by speculation. But for the highfliers who are most responsible for the financial crisis, the tax could raise the cost of highly leveraged derivatives trading and stock-flipping enough to discourage the most dangerous behavior.

Remember the “flash crash” of May 6, 2010, when the Dow plummeted nearly 1,000 points? If a tax of only 0.25 percent on each transaction had been in place for just the twenty most frenzied minutes of that day, traders would’ve faced $142 million in fees.

Read More.

About the author

no Comments

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: