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Originally Posted by Chris
Your comments are so riven with basic misapprehension and non-sequiturs it’s hard to conduct any meaningful discussion here. But allow me to try, just one more time.
The whole point of debt financing is that the investment opens an income stream that didn’t previously exist (or radically improves one that did). That new income stream pays off the debt as well as increasing profitability. If it isn’t increasing profit reasonably quickly then in most businesses it isn’t a good investment. In a competitive market (or a properly regulated monopoly) that increased profitability allows the business to operate more competitively by pricing their product or a service more attractively. Thus, to return to consumer electronics as an example, your living room TV costs about half as much (allowing for inflation) as it did 20 years ago. Innovation in a competitive market reduces prices, despite the cost of repaying debt finance.
Companies like Amazon are very good at hiding enormous profits behind constant reinvestment which reduces their tax liability but this is an accounting trick, entirely besides the main point at issue here. They’re shuffling their own money around.
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So Amazon are not building lots of warehouses and delivery networks? They are spending the money.
How long would it take the investment required to build a nuclear power station to be fully recovered?
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Companies have previously pulled out of plans to build new nuclear reactors - including the one at Wylfa on Anglesey.
These reactors take a lot of time and money to build, so the concern has often been around the financial risk.
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