We see today that raising cash for corporates is done by debt issuance (bond issues) and currently this is the preferred method of company financing. Effectively due to the tax treatment of debt companies are given incentives to borrow instead of building strength on the balance sheet.

Apple issued bonds to finance a share buy back. Cynically speaking by undertaking a share buyback it reduces the numbers of shares on issue, and thus boosts the earnings per share.

Job creation 20  years ago during the telecoms and technology boom was financed by Equity raising, of course these new start ups had little hard assets to issues bonds but one thing for sure, the equity raising of the 1990’s had massive job creation.

Finally, when one looks at all the debt financed private equity deals, one has too accept once the company is acquired by a private equity fund, what then happens is massive cost cutting to meet debt repayments, or asset selling to repay the debt pile and in both cases, these actions can destroy jobs.

Perhaps wealth creation is better at creating wealth and prosperity by equity fund raising.