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Tobin tax is national economic suicide

Adair Turner's suggestion that the financial services industry has become too big is ludicrous. How can any export industry be too large for the country that hosts it?

By Tim Congdon   September 2009

Read our other exclusive online responses to Adair Turner from George Magnus, Oliver Kamm and Robert Kuttner

Judging by his comments in this month’s Prospect, FSA chief Adair Turner is worried that Britain’s financial sector is too large. In 2008 its financial services surplus was £40-£45 bn. Most of this activity occurred in London; a very high proportion within the Square Mile. But how can the financial sector be “too large” for us as a nation? The bulk of the value added reflected sales to other countries. In particular, fees, margins, spread profits and so on are received from large multinational…

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