Date: Wed, 07 Apr 1999 14:10:42 +0200 From: Harald Schumann <HSchumann at spiegel.de> X-Mailer: Mozilla 4.05 [de] (Win95; I) MIME-Version: 1.0 To: lbo-talk at lists.panix.com Subject: Re: Tobin Tax References: <199904070647.CAA24919 at dont.panix.com> Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit
Henry C. K. Liu wrote:
> For the record, my orignmial statement on another list was:
>
> A simple Tobin tax is like trying to fight a raging forest fire with a
> bottle of Pellegrino, or giving a terminal patient aspirin.
>
> Heart attack was not mentioned.
>
> This discussion is getting as unreal as a G7 finance ministers meeting.
>
> Paul Davidson's point that the Tobin tax is not the proper response for
> the destructive run-away global foreign exchange markets is on very
> solid grounds. The real damage of the Tobin tax, aside from the obvious
> increase of transaction cost without any compensating benefits, is the
> false hope it holds out that may distract from the urgent need to seek
> real effective solutions to a very pressing and serious problem.
>
I agree, to impose a Tobin Tax would mean to do too little too late. But Henry, what do you think, could be a "real effective solution"?
Harald