08-03-2006, 02:39 AM
This is my opening to a debate I am involved with on another site. I feel my last point and conclusion are a bit rushed, but I would still like some good ol' C&C.
***
In the 1970s, the late American economist, James Tobin, put forth the idea of taxing all trade of currency done internationally, which has been affectionally dubbed the ?Tobin tax.? He received a prestigious award for this idea from the Bank of Sweden, but the idea would lie for over twenties years until it was resurrected in 1997 by the Spanish Ignacio Ramonet. Since Ramonet?s paper on the idea, many groups and controversies arose in the following nine years. There are many supporters to both sides, but the idea has yet to be globally accepted. Its main issue with those who argue against it is that it is anti-globalistic.
Globalization is the interdependence between countries in several major areas of human life, specifically those of economic, political, cultural, and social facets. This is caused by the rising transactions of both goods and services happening across borders. Globalization started primarily after the Second World War, but it began with a slow start. The concept started to be note din the 1980s, though, and since it has been a buzz among the world. Globalization?s main facet that has to deal with the Tobin tax is its impact on the economic industry. In the past years, income inequality across the world has been diminishing greatly. This can easily be attributed to globalization; as the currency of many countries mingle in the trade of goods and services, the value of a collective currency rises with it.
It has been proposed that the Tobin tax taxes all international exchanges of currency by 0.1%, and since it would be far too hard for one country to manage this, a leading idea for its supporters is that the UN deals with it and helps third world countries develop faster and become first world countries. Although the UN and its programs have helped many, this tax, even though it is only a thousandth of the exchange, would cause more harm than good. Although the originator of the idea, James Tobin, claims that the anti-globalization group associated with the tax and their main ideal, to help out poorer countries, is not the its main use, it will still hurt globalization. By creating the tax, it will discourage countries to trade freely, which is one of most golden of economic ideals
The tax?s original purpose, to stop short-term international exchanging, is a bad idea upon itself. Many businesses just cannot handle trading cross-borders in a long-term fashion without putting a lot on the table. It would be great for businesses that are already prominent, but they tend to need long-term transactions in international exchanges. For a business to get off its feet, they need to make the money to invest in a long-term deal. This also hits upon the golden economic prospect: Free trade. Although it has yet to be fully realized, globalization would only help it, whereas the Tobin tax retards its progress.
Free trade means the free movement of labour and capital internationally, no trade-distorting policies that gives one country leverage over another and no taxes on goods or services. Specialization, or division of labour, is the cooperation under certain jobs, increases global output, as done by economic analysis.
Free trade and globalization, which are intimately link, would only be crushed if the Tobin tax was introduced and enforced internationally to all cross-border exchanges of currency.
***
In the 1970s, the late American economist, James Tobin, put forth the idea of taxing all trade of currency done internationally, which has been affectionally dubbed the ?Tobin tax.? He received a prestigious award for this idea from the Bank of Sweden, but the idea would lie for over twenties years until it was resurrected in 1997 by the Spanish Ignacio Ramonet. Since Ramonet?s paper on the idea, many groups and controversies arose in the following nine years. There are many supporters to both sides, but the idea has yet to be globally accepted. Its main issue with those who argue against it is that it is anti-globalistic.
Globalization is the interdependence between countries in several major areas of human life, specifically those of economic, political, cultural, and social facets. This is caused by the rising transactions of both goods and services happening across borders. Globalization started primarily after the Second World War, but it began with a slow start. The concept started to be note din the 1980s, though, and since it has been a buzz among the world. Globalization?s main facet that has to deal with the Tobin tax is its impact on the economic industry. In the past years, income inequality across the world has been diminishing greatly. This can easily be attributed to globalization; as the currency of many countries mingle in the trade of goods and services, the value of a collective currency rises with it.
It has been proposed that the Tobin tax taxes all international exchanges of currency by 0.1%, and since it would be far too hard for one country to manage this, a leading idea for its supporters is that the UN deals with it and helps third world countries develop faster and become first world countries. Although the UN and its programs have helped many, this tax, even though it is only a thousandth of the exchange, would cause more harm than good. Although the originator of the idea, James Tobin, claims that the anti-globalization group associated with the tax and their main ideal, to help out poorer countries, is not the its main use, it will still hurt globalization. By creating the tax, it will discourage countries to trade freely, which is one of most golden of economic ideals
The tax?s original purpose, to stop short-term international exchanging, is a bad idea upon itself. Many businesses just cannot handle trading cross-borders in a long-term fashion without putting a lot on the table. It would be great for businesses that are already prominent, but they tend to need long-term transactions in international exchanges. For a business to get off its feet, they need to make the money to invest in a long-term deal. This also hits upon the golden economic prospect: Free trade. Although it has yet to be fully realized, globalization would only help it, whereas the Tobin tax retards its progress.
Free trade means the free movement of labour and capital internationally, no trade-distorting policies that gives one country leverage over another and no taxes on goods or services. Specialization, or division of labour, is the cooperation under certain jobs, increases global output, as done by economic analysis.
Free trade and globalization, which are intimately link, would only be crushed if the Tobin tax was introduced and enforced internationally to all cross-border exchanges of currency.
"We're just two lost souls swimming in a fish bowl."
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