Whilst simultaneously having a rapidly declining birth rate, and relatively low levels of immigration, to maintain a homogeneous society, without imploding in on itself?
In: Economics
Businesses and nations do not run like a household. A certain amount of debt is actually good and preferred to using their own money. There are a lot of numbers games associated with it. Actually rich people also do something similar with their estates. When people talk about how the rich can’t actually use their wealth because it’s tied up in stocks and they’ll tank the stocks if they sell. .. well that’s really not true. What happens is they take out big loans with nice terms using their wealth as collateral and then just make minimum monthly payments on it. Eventually those payments become meaningless as inflation eats away at it and they make more and more money off of their investments. Kind of like your mortgage.
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