Planet Money SUMMER SCHOOL 3: Booms, Busts & Us
19 snips
Jul 28, 2022 In this engaging discussion, Atif Mian, a Princeton economics professor and author known for his insights on business cycles and economic inequality, tackles the wild ride of the economy. He unpacks the often misunderstood role of bankruptcy as a safety net during downturns. Through poignant narratives, he illustrates how personal stories of financial strain can reflect broader economic themes. The conversation also delves into counter-cyclical policies that could help stabilize business cycles and mitigate economic hardships.
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Queen City Appliances and Bankruptcy
- Roddy Player, CEO of Queen City Appliances, faced bankruptcy during the 2008 housing bust.
- Using Chapter 11, he downsized, laid off employees, and ultimately saved the family business.
Bankruptcy's Public Nature and Chapter 11
- Bankruptcy filings are public, revealing a business's debts and struggles.
- Chapter 11 bankruptcy allows struggling businesses to reorganize and avoid liquidation.
Bankruptcy's Ripple Effect
- Bankruptcy can disrupt valuable business relationships with customers and suppliers.
- Government intervention, like Chapter 11, can mitigate these losses and help stabilize the economy.
