Our country is still reeling in the aftermath of the greed-fueled contagion of the 2008 economic collapse and Wall Street getting caught in villainous behavior is daily news. The anger of the American public toward Big Banks that were bailed out while average citizens went under—institutions that continue to get away with mere slaps on the wrist to settle claims of severe wrongdoing— is the foundation of the current populist political surge. It’s not surprising that Hollywood wants to get in on the act, and they should be applauded.
The Academy Award-winning film The Big Short spotlighted for the movie-going public the complex web of financial maneuverings that tumbled down like a house of cards, leaving millions without homes and millions more with empty nest eggs. “A-listers” Julia Roberts, George Clooney, and Jodie Foster have even embraced the “us-versus-Wall Street” theme in the recently-available-for-the-small-screen film, Money Monster. The plot focuses on the problems that cascade from an everyman feeling wronged by a high-speed trading firm, and a “glitch” that bottomed out the value of a stock. Without commenting on the quality of the film, it can be said with all conviction that such glitches are not fiction.
In May of 2010, there was a flash crash that brought the curtain down on a trillion dollars of market value in a matter of minutes. And, in October 2013, in an unexpected twist, the normally very steady U.S. Treasury bond market went on a wild ride that was eventually blamed partially on high-frequency trading, computer programs called algorithms that automatically buy and sell financial instruments in much less than a blink of an eye.
Why should we risk our market stability with such rampant speculation? Spoiler alert: we don’t have to!
Right on cue to tamping-down on undesirable market behavior is an idea associated with Nobel prize-winning economist James Tobin, who called for a corrective tax on speculative trading that would “throw some sand in the wheels” of the market to slow it down. Dozens of countries already have these taxes in place and the U.S. had a tax on Wall Street taxes from 1914 through 1965. Public Citizen has long advocated for reinstating a tax on Wall Street trades to protect consumers.
Not a Hollywood blockbuster, but another recent film, The Same Heart, also chronicles the rise of the high-speed trading ‘bot. However, the problem toward which the documentary film’s lens is primarily pointed is the horrible injustice of childhood poverty. But, instead of showing only the negative—the unthinkable hurdles of hunger, disease, and violence that billions of children face worldwide—it focuses on a possible solution: taxing Wall Street trades. The Same Heart makes the ethical and economic case for the wealthiest among us, the financial elite who make millions and billions of dollars in profit from financial transactions, to fund programs that invest in the world’s youth.
On September 27, at 1 pm in the Capitol Visitor’s Center, Public Citizen, in coordination with Media Voices for Children, which produced the film, the Child Labor Coalition, and the Congressional Progressive Caucus, is hosting an event called “Investing in our Future, One Transaction at a Time,” a panel discussion and screening of an excerpt of The Same Heart. I will be center stage for a dialogue with U.S. Rep. Keith Ellison (D-Minn.), filmmaker Len Morris, and experts from the Center for Economic and Policy Research, Communications Workers of America, the Institute for Policy Studies, and the National Consumers League. In addition to speaking about how the tens of billions in estimated yearly revenues from a Wall Street tax could benefit the next generation, I will outline how current legislative proposals to reinstate a tax on Wall Street trades to make markets less volatile and work better for average investors.
A fairer market does not have to be a celluloid dream. If we want to flip today’s script: the robbers being the banks themselves, bad guys costumed in pinstripes, never jail stripes, we need to take on Wall Street. The first step is making Wild West Wall Street stock market gamblers pay their fair share by taxing their trades at a fraction of a percent.
And, even if you’re not in DC to make the movie and panel event, you can still help set the scene for a legislative win. Please tell your U.S. Representative that you want her or him to be a hero and cosponsor the Putting Main Street FIRST (Finishing Irresponsible Reckless Speculative Trading) Act (HR 5745). If you’ve already done that, be a social media superhero and help spread the word about the Take on Wall Street fight by sharing this blog on Twitter with the hashtags #WallStTax or #TakeOnWallSt.
With your help, soon we will reach a critical consensus: no longer will we let the One Percent steal the show.