Friday 18 November 2011

Why Cameron killed the Tobin Tax

A financial transaction tax is an obvious and efficient way of curbing some of the excesses of the global financial markets. It is the complete free flow of finance that has allowed speculators to bring whole national economies to their knees, destroying the lives of millions of people in the process.

Clearly, even the Eurozone has now realised that it is an important policy to tackle part of the economic problem that the continent currently faces. But you cannot have just a few European countries taking part. For it to work, the whole of Europe must first act together.

Cameron was right today when he said that it needed to be a global initiative, if it was to be completely successful - as finance will always find a way to make the most of its international liquidity. however, a European 'Tobin Tax' would be the first step towards that global policy, and without it, Cameron knows that the tax is going nowhere.

Effectively today, Cameron stood up for the bankers, and defied the needs of ordinary people throughout Europe. He has killed of a 'Robin Hood' tax, a policy that would restrict the greed of bankers, and channel much needed capital into the hands of sustainable policies whilst encouraging financial stability.

It is another clear demonstration that this is a Government only working in the interests of a tiny minority of people, who are already very comfortable indeed. The sooner we are rid of them the better.

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