Above is a video report that updates the movement to establish a Financial Transactions Tax (FTT) (a k a the Robin Hood tax) in the United States, from The Real News, an independent journalism outlet.
An FTT would free up billions of dollars that could be used to protect society’s most vulnerable citizens, or to create a bailout fund for the next crash. And a tiny tax on trades would also have the benefit of reducing volatility in the financial markets by limiting incentives to digitize and automate everything; automated computer algorithms making microsecond decisions (high-frequency trading) are responsible for the majority of global trades being made today. (The systemic risks inherent in loosely regulated global financial markets have increased as the financial industry has exploded in size and importance. About $6 trillion is traded on financial markets daily as of 2009, including $4 trillion on the foreign exchange market, by far the world’s largest market, followed by the derivatives market. The size of the foreign exchange market has increased 800% since 1988.)
Europe has started moving ahead with an FTT in the face of firm opposition from both the Democratic and Republican parties. The Obama Administration, via Tim Geithner, has made its distaste with an FTT clear. Increased public awareness of the issues and public pressure on lawmakers is urgently needed.