Financial markets have grown dramatically over the past decades. Speculation in them has also led to bubbles that, when popped, caused untold damage to the world’s economy.
In order to raise revenue while also stymying some of the rampant speculation that can lead to financial collapse, a financial transaction tax should be levied on financial trades. This has been adopted by other countries quite successfully.
Investing has been transformed into speculation by computer-generated algorithms and trading platforms. The average holding time of a stock is now only 4 months. There is no real value being generated, just individual firms trying to squeeze value out of the system, often at the expense of the public.
Problems to be Solved
- Financial transactions and speculation cause risk to the economy, and that risk isn’t covered by those who cause it.
- Raise revenue
- Limit speculation that has no real economic purpose
As President, I will…
- Propose a 0.1% financial transaction tax that would raise as much as $50 billion per year that will be used to help fund Universal Basic Income.