Krugman today is well worth reading but, one suspects, will not be read by the right people. That would be the New Democrats in the current administration.

Paul is selling an idea that originated with James Tobin years ago and more recently proposed by Wonks Anonymous and doubtless thousands of others. That idea would be a small tax on all financial transactions, foreign currency trades, stock sales, sales of camel futures in Dubai, whatever.

The tax would not have to be very big to bring in real revenue. A fraction of a penny on the dollar goes a long way when billions of dollars are changing hands all of the time.

It would also have social benefits because one of the major problems with our current financial markets is that they are way too efficient. Transactions are so cheap and fast that you can make money acting not only on real information but also on rumors about the possibility of rumors. Uncontrolled feedback is a problem.

Think of one of the more irritating songs by Yo La Tengo.

A financial transactions tax is like turning down the amplifier.