“As someone studying the economics of this, I can say that a financial transactions tax is a policy no-brainer,” Lynn Stout, a professor of corporate law at Cornell Law School, said at a Wednesday briefing on Capitol Hill. “It’s all upside, there’s virtually no downside, and it’s astonishing we don’t have one.”
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Democrats have reached a watershed. After two decades in which the party has moved leftward on social issues but has largely accepted the financial sector's economic preferences - the abject failures of the market economy are pushing the party leftward. The revolt against Summers was less about his positions on today's economic issues but his opposition to regulating derivatives. In Congress, in New York City and Chicago, Democrats are feeling the heat of the people.
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