Modern “neoliberal” capitalism requires constantly increasing velocity and atomisation of transactions. A #robinhoodtax at 0.5% is nominal and fair. Capital cannot remain stateless and boarderless.
Consider what VAT is: a regressive tax on the transaction of purchasing goods set at 20% (with exceptions). 0.5% on financial transactions is fair and reasonable, will raise £26bn.
There is already a transaction tax, it’s just the proceeds for this go to the big financial institutions. Every transaction has a cost. That’s how modern capitalism works. 0.5% per transaction is effectively a micro payment. Remember these banks make hundreds of billions, and caused a world wide financial crash. It’s about time we stopped being so deferential to them and make capital contribute to the security of the societies they effectively leech off.
The banking system in the UK is broken. The tax payer had to bail it out to the tune of over £1.2 trillion since 2008, and the costs keep rising. With 80% of some of the major banks in public ownership and being run, albeit at arms length, by the Treasury, businesses are still finding it impossible to raise capital for expansion.
It’s time for a new model of banking in the UK. Take a look at Germany.
Germany isn’t in a banking crisis and has not had to bail out its banks. It’s GDP is growing at around 3% currently. It has a three pillar banking structure, each totally separate from each other. The Public Banking sector has a share of 40% of the country’s total banking assets. Germany clearly has something to teach us about how to structure our financial sector.
Why does our Governments all ways look to America or Far East for its ideas, and never to Germany or Scandinavia etc? I think we should follow!
For more information on the German public banking sector read:http://en.wikipedia.org/wiki/German_public_bank (click it) where it explains in more detail how the public banks work.
I think it’s time in the UK has come.