I’ve long – and often – said that bankruptcy is one of the most important parts of any capitalist or market based system. Sure, experiments go wrong. So, they need to be closed, the assets distributed to other experiments some of which might go right. And it’s the failure to clear out, close down, liquidate, that dead wood which leads to slow growth in both hte economy and productivity – therefore also wages.
Zombie firms, weak banks, and depressed restructuring in Europe
Dan Andrews, Filippos Petroulakis 04 April 2019
Europe’s productivity problem is partly due to the rise of zombie firms that crowd out growth opportunities for others.…See More