Half Percent
When the Fed raises the interest rate...

It sounds benign, just slow down the economy a little and keep workers from demanding too much in wages - keeping Wall Street happy. But, who pockets the 1/2 percent we all pay?

I'm no financial guy, so I am just raising the issues:

Just where does the money go? It feels like taxation without representation. It feels like a redistribution of wealth to the wealthy.

While canidates talk about tax cuts, the Fed slips in this "tax" and no one complains. Why is this "interest rate tax", a tax in sheeps clothing, more benign and easier to swallow than an April 15th tax or a sales tax? The benefit of an offical tax (not a sneaky tax) is that you can trace where the money is going.


copyright© 2000, Ted Schaefer, All rights reserved