海角大神

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

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

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

Other big companies are doing much the same on a smaller scale. 聽

Who gains from all this? The richest 10 percent of Americans who own 90 percent of all shares of stock.聽

But little or nothing is trickling down. The average American can鈥檛 borrow at nearly the low rates Apple or any other big company can. Most Americans no longer have a credit rating that allows them to borrow much of anything.聽

It would be one thing if Apple and other giant companies were borrowing in order to expand operations and create new jobs. But that鈥檚 not what鈥檚 going on. Apple, remember, is still sitting on $145 billion.

The reason big companies aren鈥檛 creating more jobs is consumers aren鈥檛 buying enough to justify the expansion. And government is cutting back on spending.聽

Big corporations are borrowing simply in order to push stock prices up and reward their investors.聽

It鈥檚 a sump pump with the Fed on one end buying up bonds to keep interest rates low, and shareholders on the other end raking in the returns.聽

Get it? Easy money from the Fed can鈥檛 get the economy out of first gear when the rest of government is in reverse.聽

Trickle-down economics is the first cousin of austerity economics. Austerity is nuts when so many millions are out of work. And as we鈥檝e learned before, trickle-down is a fraud. Nothing ever trickles down.聽