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Non-Tech : Let's end the national debt.
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To: Gersh Avery who wrote (8)7/25/1999 7:53:00 PM
From: Zeev Hed   of 109
 
Not really, but most businesses that I know has a certain debt on their balance sheet, the simple reason for businesses is that return on assets employed is greater than the interest they pay on debt and thus with debt, they can increase their return on stockholder equity. The equivalent of government debt is not that clear, but still, as a country, we have vast assets and the debt to assets ration is not in the danger zone, if we do not get once more into a Reagan era like debt increase period. The ideal scenario, IMHO, would be to reduce the debt gradually to about 10% to 20% of our GDP and by gradually, I mean no more $50 to $100 Billions per year. The rest should be given back as tax breaks to the citizenry. If we go with budget surpluses that are too large, we may run the risk of precipitating a severe recession, IMHO.

Anyone remember those big fear campaigns were people were forecasting the national debt to reach $13 trillion by the end of the century?

Zeev
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