Magazine
Latest Issue

The unspoken political truth about debt

No politician talks about why companies create so much debt—or has a plan to deal with the problem

By Andrew McNally  

A sketch of the Victorian debt activist Richard Mentor Johnson freeing a man from debtors' prison

Leaving aside credit creation, supported by central banks, there is no greater structural bias in favour of debt finance than corporate taxation; for much of the world, there is enormous support for the use of debt in corporations. Interest expenses on debt finance have been tax deductible for US corporations since 1918, when this allowance was introduced as a…

Register today to continue reading

You’ve hit your limit of three articles in the last 30 days. To get seven more, simply enter your email address below.

You’ll also receive our free e-book Prospect’s Top Thinkers 2020 and our newsletter with the best new writing on politics, economics, literature and the arts.

Prospect may process your personal information for our legitimate business purposes, to provide you with newsletters, subscription offers and other relevant information.

Click here to learn more about these purposes and how we use your data. You will be able to opt-out of further contact on the next page and in all our communications.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

We want to hear what you think about this article. Submit a letter to letters@prospect-magazine.co.uk

More From Prospect