Wednesday, March 12, 2014

Why bankruptcy is not evil

Bankruptcy is a positive force in an economy. Maybe it's not positive for the entity going bankrupt, but it is positive for the economy as a whole because it's purging from the body of the economy nonviable companies that are squandering our resources.

Bankruptcy is like when a body has an infection. It fights it off, and that's what the free market is doing by trying to kill off noncompetitive companies. 

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