The Economy: 14. Bankruptcy and Insolvency
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Is There Any Economic Benefit to Going Bankrupt?
You can still technically go to prison for not paying certain debts like council tax or criminal fines. It's incredibly rare, but it can happen. When you look at the wider economy, are there any economic benefits to having bankruptcy and insolvency as an option? The average level of productivity and profit in the rest of the economy goes up when some companies go bankrupt. But on the other hand, you'd rather have the garden environment be such that you've carefully tended it and you don't have so many weeds growing in the first place.
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