No. of Recommendations: 3
Steve,
You need to read up on the Modigliani-Miller theorem,i.e. "capital structure irrelevance" theorem.
This is a basic part of finance theory.
There is nothing fundamentally wrong with using debt as opposed to equity to finance a corporation's, or a nation's, capital structure.
The U.S. is extremely wealthy and if we wanted to, the national debt could be reduced or at least kept constant in inflation-adjusted dollars.
We can start by not giving various kinds of subsidies to illegal immigrants.
Are you with me?
