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Even if that's true, current bankruptcy law is still really far from socially optimal. There are a lot more points on the "how does your system respond to busi
by zbentley 5mo ago
Even if that's true, current bankruptcy law is still really far from socially optimal.
There are a lot more points on the "how does your system respond to business failure" spectrum besides low-consequence ch11/better-luck-next-time and debtors' prison.
- jmalicki 5mo agoWhat's a country with a more effective system? Not saying that the lack of a more effective system means the US's is optimal, but the outcomes for capital reallocation are far better in the US than the UK for instance. In the US, workers at a bankrupt company can often show up to the same workplace the next day or week and not skip a beat, the customers might not even know they're doing business with a different entity - only the owners have changed - the old ones get wiped out and their debtors take control.
- rayiner 5mo ago> Even if that's true, current bankruptcy law is still really far from socially optimal A 787 isn’t an optimal airplane either, but it’s a damn good design and it’s silly to compare it to things that don’t exist yet.