Here’s How to Make Wall Street Pay for Wrecking the Economy
Three years into the nation’s brutal recession, America’s workers continue to suffer from massive joblessness, skyrocketing foreclosures and weak buying power. But Wall Street—with corporations sitting on $2 trillion in cash—hasn’t paid for its role in causing the near-collapse of the U.S. economy.
The European Union (EU) this week moved to change that, with the EU formally adopting plans for a financial speculation tax that would raise 57 billion euros a year. The tax could generate billions in revenue to help our ailing economy, stimulate job growth and discourage the reckless, high-volume/short-term profit, computer-driven Wall Street gambling that led to our current economic crisis.
While the EU proposal still needs unanimous approval from EU states, there has been no legislative movement to do the same in this country. As economist Dean Baker notes, “the intensity with which the country’s leading deficit hawks continue to ignore financial speculation taxes (FST) is getting ever more entertaining.”
U.S., European Union File Complaint Over China’s Trade Restrictions
The Obama administration and the European Union (EU) announced yesterday they plan to jointly file a complaint at the World Trade Organization (WTO) over China’s trade restrictions on exports of key raw materials used to manufacture products such as baseball bats, contact lenses and plumbing fixtures.
When China joined the WTO in 2001, it committed to remove the export restrictions on the raw materials. The export restraints are significant because China is the largest global producer of many of the raw materials in question—bauxite, coke, zinc, silicon metal, silicon carbide, fluorspar, yellow phosphorous, magnesium and manganese.
