To equitably reduce the deficit in a way that maintains good faith with the American people requires tax increases. Yes, new taxes are necessary. Especially those focused on the speculators who caused the crash.
Last year, UNITAID released a study that demonstrates exactly what a country would need to do to implement an FTT. The study found that the introduction of such a tax on a national basis should have no significant negative impact on national financial markets.
Slashing services, selling off public assets, and raising taxes won't cure these ills. To maintain a sustainable and productive economy requires a visionary leap into the new. A new economy needs new methods of public financing.
The Dark Age of Banking reaches its twelfth anniversary today, November 4. History will no doubt judge the Financial Modernization Act, repealing Glass-Steagall, as the beginning of the dark, modern banking era.
With the constellation of the occupy protests and the broad international movement for the FTT, the moment for achieving the tax, and the critical revenue it can provide to help revive struggling economies, has never been greater.
It's quite ironic that on one hand there has never been such strong mobilization and acknowledgement of global health needs, and still, the funding and policies do not proportionately match the momentum or awareness.
Wall Street banks have been saved from bankruptcy by governments that are now going bankrupt themselves; but the banks are not returning the favor. Wall Street needs to be made to pay its fair share, but how?
Stiglitz explains the future of the Euro Zone, how it was possible to create a moral vacuum on Wall Street, why US citizens do not take their anger to the streets and how the US should follow Greece and start regulating now.