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Wed May 1, 2013, 06:46 PM

Robert Reich: The Fed, Apple, and Trickle-Down Economics


A Story for May Day: The Fed, Apple, and Trickle-Down Economics
Wednesday, May 1, 2013


The Fedís policy of keeping interest rates near zero is another form of trickle-down economics.

For evidence, look no further than Appleís decision to borrow a whopping $17 billion and turn it over to its investors in the form of dividends and stock buy-backs.

Apple is already sitting on $145 billion. But with interest rates so low, itís cheaper to borrow. This also lets Apple avoid U.S. taxes on its cash horde socked away overseas where taxes are lower.

Other big companies are doing much the same on a smaller scale. ...................(more)

The complete piece is at: http://robertreich.org/post/49368810890



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Reply Robert Reich: The Fed, Apple, and Trickle-Down Economics (Original post)
marmar May 2013 OP
byeya May 2013 #1
byeya May 2013 #2

Response to marmar (Original post)

Wed May 1, 2013, 06:53 PM

1. He's right and Bernacke's interest rate suppression is really hurting retirees who are counting on

 

the income from their CDs and bonds to finance them in old age. Income has dried up.

This interest rate suppression has not led to investment from the capitalists and has not had much of an impact on home buying with near record low mortgage rates. The ultras are buying things instead of building things that create jobs. The Fed has succeeded in inflating the price of stocks but has taken a human toll.

We need a massive infrastructure spending spree which is not possible for the Fed to accomplish but Obama could at least propose it, stump for it, and point fingers at obstructors. Instead, Obama has bought into the austerity nonsense.

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Response to marmar (Original post)

Wed May 1, 2013, 07:06 PM

2. The old Chinese version of the name trickle down is Feeding the Horses so that the Sparrows

 

can eat.

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