Saturday, February 20, 2010

Hundreds of economists...

...Are completely wrong.

The appeal to some sort of "fairness" as the primary motivator is appaling, and Global Warming is approaching levels of politicization not seen since the disaster of prohibition.

I wonder what organizations these 350 economists belong to...odds are they include the international rule makers. It is a slippery slope to abdicate any form of sovereignity these days, which is why countries such as China vociferously defend their power to command its subjects.

Hundreds of economists call for tax on currency speculation
By Sean O'Grady, Economics Editor
Monday, 15 February 2010

Some 350 prominent economists from all over the world have written to
the leaders of the G20 calling on them to implement the so-called
"Robin Hood tax" on the banks "as a matter of urgency".

Two Nobel prizewinners, including the outspoken critic of the
financial system Joseph Stiglitz, and scores of professors at
universities from Harvard to Kyoto, are calling on G20 governments to
back a financial transactions tax on speculative dealings in foreign
currencies, shares and other securities of 0.05 per cent – say £500 on
a £1m transaction.

The letter argues: "This tax is an idea that has come of age. The
financial crisis has shown us the dangers of unregulated finance, and
the link between the financial sector and society has been broken. It
is time to fix this link and for the financial sector to give
something back to society.

"This money is urgently needed. The crises of poverty and of climate
change require an historic transfer of billions of dollars from the
rich world to the poor world, and this tax would offer a clear way to
help fund this."


CrisisMaven said...

well most macro-economists aren't even able to calculate the GDP correctly, let alone "see a bubble".

A. said...

True. Good to hear from you as I ran into your blog today on an unrelated matter.
As for Global Warming, the parallels between it and Global Warming are legion...the rhetoric from the 20s policy makers for destroying businesses (creating massive unintended consequences) for "the public good" is the same.