If you are opening an airline, you need to buy aircraft (amongst many other things). (Commercial) aircraft are extremely expensive but generate generate value long after they are acquired. It is a lot cheaper to incur devt by leasing those planes than it is to buy them outright.
Personal debt is different, in most cases, and is a lot closer to the reality of your statement. I’m spending about $11,000 for our wedding, all inclusive. I paid for that with a credit card. I can’t make revenue off of that wedding outright (though I guess it can become an asset if an epic YouTube video comes out of it and becomes a viral sensation that survives the test of time), so that debt isn’t useful. But I made a risk calculation that me paying for everything upfront and paying for it later is more important than waiting the n years it would take to save for that wedding and pay everything in cash. That decision _could_ bite me in the ass in a few years when IT is 100% automated by ML/AI putting the cloud into the blockchain, but I made that decision assuming that that wouldn’t happen. :-)
If you are opening an airline, you need to buy aircraft (amongst many other things). (Commercial) aircraft are extremely expensive but generate generate value long after they are acquired. It is a lot cheaper to incur devt by leasing those planes than it is to buy them outright.
Personal debt is different, in most cases, and is a lot closer to the reality of your statement. I’m spending about $11,000 for our wedding, all inclusive. I paid for that with a credit card. I can’t make revenue off of that wedding outright (though I guess it can become an asset if an epic YouTube video comes out of it and becomes a viral sensation that survives the test of time), so that debt isn’t useful. But I made a risk calculation that me paying for everything upfront and paying for it later is more important than waiting the n years it would take to save for that wedding and pay everything in cash. That decision _could_ bite me in the ass in a few years when IT is 100% automated by ML/AI putting the cloud into the blockchain, but I made that decision assuming that that wouldn’t happen. :-)