There is (or now it might be better to say there has always been) an ill-conceived policy ( promoted only by the rich) that if you put in place policies that help the wealth to become wealthier it will somehow benefit us all.
Down throughout THE AGES this has proven to be a fraud.
However Conventional rich or power wisdom’s seldom, collapse on their own.
They collapse only when challenged by advocates for change that trust forward initiatives that expose the bankruptcy of the conventionally wise.
The world needs NOW MORE THAN EVER to re- focus greed that is holding a lock-grip over our economies and democracies.
Just think what could be achieved with a 0.0O5% UP TO 0.5% WORLD AID COMMISSION IF APPLIED TO ALL STOCK EXCHANGE TRANSACTIONS IN THE WORLD.
Every day trillions of dollars change hands in currency exchange, share dealings and more complex financial
products like futures, derivatives and so on.
The market in these transactions has exploded over recent years and all the transactions together constitute an amazing 75 times global GDP.
Often, the trading is done by computers which react to small shifts in price, and money, shares and exotic financial products change hands many times an hour, all over the world. Most of the trading is speculative and serves little useful purpose –indeed it can harm companies, livelihoods and even whole national economies, as the Asian financial crisis in the 1990s did.
Such a tiny commission (0.005% to 0.5%) on each of the millions of financial transactions that take place every day would provide a new source of finance to pay for a range of desperately needed changes to our world of inequalities.
It would change the very face of capitalist Democracy.
Helping to deliver the Millennium Development Goals and tackling the challenge of climate change.
It would be far more progressive than other tax rises as it would ensure that those with the broadest shoulders contribute most to the cost of the economic recovery.
It would be easier to collect because all the financial transactions to be taxed are conducted
or registered electronically. A minor change to computer programs would deduct the commission at source and direct it straight to the Fund. This has been tested by supportive financial institutions, and already operates in many share transactions.
It would enable the establishment of Rapid Aid Centers around the world in case of Natural Disasters. Fully funded, fully equipped, fully maned, able react at the drop of a hat.
The daily volume of business deals on the Foreign exchange markets in 1998 was estimated to be over $2.5 trillion dollars. Now it well above $5 trillion. This is just Foreign Exchange.
Small currency transactions could be exempted from taxation (and at 0.005%, you’d pay £1 on every £20,000
you changed – some holiday money!
Add on small share transactions, although they’re already taxed at 0.5% – and pension funds would pay the tax, but they tend to hold shares for many years:
The people who would really pay the commission would be speculators like hedge funds, sovereign wealth funds and merchant banks who buy and sell shares every hour.
How could this be achieved, who would managed the fund, how would we ensure transparency, avoid corruption, and political manipulation etc, I will address in my next blog.
It is my firm belief that this initiative is the only viable solution to present day world problems. If you agree or have some useful observations or comments let’s hear them.