Can the democracies tame the financial sector? A sociological example in the unpopular Tobin tax

Jocelyn Pixley

    Research output: Chapter in Book/Report/Conference proceedingConference proceeding contributionpeer-review

    Abstract

    The idea that governments necessarily have a critical role in economy and society was again plain in the global financial crisis. For 30 years, the democracies said they were ineffectual in coordinating economic life, and markets alone were perfect for this political role. This paper examines one financial reform proposal, in light of the weakened situation of governments and political elites vis à vis the globally obstructive and destructive behaviour of the financial sector. Through an interpretation of ideal and less than ideal relations between democracies and a sector which, by and large, lacks the beneficial social purposes that are exclusive to banking, it assesses current failures of governments to agree collectively on international controls and taxes on banks and shadow banks. It uses the hated transaction tax proposal as the main illustration. Criteria about the feasibility and desirability of democratic controls over the sector are drawn from a broad framework about the purposes of banks and their role in global society. Many controls and taxes are modest reforms, so modest that the vehement opposition by the financial sector to them could be challenged. The paper proposes that a minimal aim is for governments to require this private finance sector to create new social wealth.
    Original languageEnglish
    Title of host publicationHeterodox economics
    Subtitle of host publicationaddressing perennial and new challenges : proceedings : refereed papers
    EditorsLynne Chester, Michael Johnson, Peter Kriesler
    Place of PublicationSydney, NSW
    PublisherSociety of Heterodox Economists
    Pages212-228
    Number of pages17
    ISBN (Print)9780733429576
    Publication statusPublished - 2010
    EventAustralian Society of Heterodox Economists Conference (9th : 2010) - Sydney, NSW
    Duration: 6 Dec 20107 Dec 2010

    Conference

    ConferenceAustralian Society of Heterodox Economists Conference (9th : 2010)
    CitySydney, NSW
    Period6/12/107/12/10

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