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

[marmar]

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


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

For evidence, look no further than Apple’s 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, it’s 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

[eridani]

1. And those jackasses at Fix the Debt want even more cuts.

Fuck 'em.