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- Title
With a Modest Financial Transactions Tax, Jim Simons Would not Have Been Superrich.
- Authors
BAKER, DEAN
- Abstract
Jim Simons, the founder of Medallion hedge fund, recently passed away with a fortune of over $20 billion. Simons, a math genius, transitioned from academia to Wall Street in the 1980s, using sophisticated algorithms and computers to beat the market by trading fractions of a second before others. The Medallion fund consistently achieved impressive returns of 66 percent annually. However, critics argue that Simons' wealth was purely rent-seeking, as his trades did not provide useful information to the market and instead took money away from other actors. The article suggests that implementing a modest financial transactions tax (FTT) could have curbed Simons' profits and redirected them to other investors. Unfortunately, the political power of individuals like Simons makes it challenging to discuss FTTs in the United States, despite their implementation in other countries.
- Subjects
ECONOMIC statistics; INVESTORS; TAXATION; ENERGY futures; INCOME
- Publication
CounterPunch, 2024, p1
- ISSN
1086-2323
- Publication type
Article