Saturday, June 30, 2007

Arguments in favour of bankruptcy: "Grow some balls and smile".

Even if an industry (say, a search engine) goes bankrupt paying out more wages and income than it is able to be compensated with, (a process which benefits the community but not the individual industry), the individuals within that specific industry would still have been become more experienced in the process, and better equipped to work elsewhere. There may be a greater overturn of entrepreneurial enterprises if this were an accepted business model, but with each failed enterprise the general quality of life would increase, and with it the readiness of the community to create new enterprises which would be better fit for the situation in which they are created. Although each individual would be forced to adapt to a greater extent, each individual would also have more time and energy to do so.

Granted people are lazy, but they'll get over it.

(for background, try Keynes vs. Veblen.)

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