A friend of mine sent me an email highlighting the Robin Hood Tax initiative, an idea how a crisis for the banks could turn into an opportunity for the world. I loved the idea at first sight, but then it got me thinking…
I voted NO, and think the Robin Hood Tax is a BAD idea for the following reasons:
1) To begin with, I believe banks would find a way to compensate for any loss in margin on their side. So what, as long as some of their money is used for good? Well, I can’t be sure, but one, or perhaps even any clever way by which they compensate their loss, would result in the printing of more money. And more money flowing around certainly will not solve any problems in the long term – in my view it will just contribute to the bubble-build bubble-burst trend the global financial system seems to be following.
2) Another reason why I think the Robin Hood tax is not such a good idea is the fact that it would directly link such good causes, as tackling poverty and climate change, to something as philosophically dubious as credit derivatives trading. With that, it would only strengthen the role derivatives trading plays in the global economy – an illusion already engulfing so much of world’s energy and creativity – and for what?
Concluding Note
Is there an alternative, ‘solve poverty and stimulate climate change’ solution? So much creativity in the world… I’m sure we can come up with something better that another piece of chewing gum that would majestically fix the leaking roof.
I think the solution to poverty does not lie with banks at all, and if so, certainly not in giving banks more authority, responsibility, or even functionality. In my eyes, banks need to go back to their original function of guarding true value, and redistributing wealth and opportunity, if they are to be part of any solution.
Are you for or against the Robin Hood Tax and why? Leave a response below…