Bankruptcy Is Important – It Clears Out The Zombie Firms

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.…

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If Only The Observer Had A Clue About Economics

There was a time when The Observer did in fact understand this socioeconomic polity around us. Sure, they were on the left of the argument even back then but that was when being on the left was being on the right, correct, side. You know, free trade, international markets, globalisation, all that stuff, in opposition to the more conservative protectionism. Things have changed somewhat.

No, not just that they’re hopelessly woke and all that. But they’ve not got the economic chops, the hinterland in theory and knowledge, to be able to understand what they’re being told.…

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