Bankrupted by the Cost of Bankruptcy
Wage slaves can't declare personal bankruptcy, but we can still underwrite it for corporations
Robert Reich has a short, sweet commentary in The American Prospect's current online edition noting the insidious relationship of the newly approved law making it nigh impossible for individual Americans to declare bankruptcy and our indulgent laws regulating corporate bankrupcies. In short, he points out, your employer's bankruptcy can lead to the kind of cost cutting--layoffs, pension freezes, cuts to wages and benefits--that so often leads to personal bankruptcy in this country today.
Get it? Life is more precarious for many individuals in this economy, in part because the companies they work for can no longer be relied on for steady jobs, steady wages, and health insurance, as they could be relied on decades ago. And the increasing ease with which companies can rid themselves of such commitments by declaring bankruptcy or even threatening to declare bankruptcy makes employment even more precarious.
Read the rest here.
Too late? Already lost your pension in some corporate bid to keep your former employer's stock price up? Then click here.
Get the This Week's Top Stories Newsletter
Every week we collect the latest news, music and arts stories — along with film and food reviews and the best things to do this week — so that you’ll never miss City Pages' biggest stories.