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Rep. Stark: More Debt = More Wealth

Discussion in 'U.S. Politics' started by Pidgey, Sep 4, 2009.

  1. Pidgey

    Pidgey Well-Known Member

    Jul 7, 2007
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    Don't take my word for it (Rated "R": Under 17 Requires Accompanying Parent or Adult Guardian):

  2. TheFranklinParty

    TheFranklinParty Well-Known Member

    Jun 10, 2009
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    Tampa, FL
    Too bad the interviewer didn't have a better grasp of economics. It would have been fun for him to really challenge Rep. Stark's presupposition that national debt equates to wealth.

    It's like a line of credit, if you have a $100,000 line of credit it is presumed you have greater wealth. That money can be leveraged to inverts and grow your wealth. The problem is, if you don't pay it off and you start to compounding your interest payments back into debt you soon exponentially reduce your wealth. Leverage is a double edged sword, especially when the tax base is shrinking.

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