jpete wrote:Debt is never good. Especially when you monetize it as we do.
It tends to lead to all kinds of bad things.
If debt is always bad you can't make it more bad by adding qualifications.
Some years ago the Bulova Watch Co. was selling to the trade an ultrasonic cleaner for
$5 per month until paid. This was a good size machine that could do clocks as well and the price was low. In effect it was like getting the machine for nothing because the increase in productivity dwarfed the payment. Was that bad debt?
A farmer buys a new tractor on time and doubles his land under cultivation which covers the payments plus a handsome profit. Is that bad debt?
Until the government interfered with housing it was one of the best things you could buy on time. It protected against inflation while providing a nest egg. Now that the government caused havoc has mostly played out it probably is a good investment again.
A community issues long term bonds and builds roads and an industrial park. Collects much more in taxes. Is that bad?
Henry Ford inaugurates time payments on his cars and puts the country on wheels. Roads are built, communication increases exponentially, commerce doubles, Was that bad debt?
Lincoln printed money to finance the Civil War. Inflation resulted but the war was won and the money printing stopped. Should he have lost the war instead? Maybe, I am not sure.
Politicians always say we are investing in our future. Sometimes that is true but more often we are investing in politicians which is always bad. So it does depend on the investment and what the payback is.