Post #67199 by marco100 on the US Policy board

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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?

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