Who Pays My Debts?

Obama doesn’t believe – or claims during his ongoing campaign that he doesn’t – that business create their businesses. Instead, the boy says that someone else did that.

That begs the question of who pays for a business’ failure. If someone else built that business, are they, or should they be, responsible for paying off its debts if and when it goes under?

If I fail, who pays my debts?
If I Fail, Who Pays My Debts?

The answer, of course, is that the business owner and only the business owner is responsible for paying his company’s debt in the event that his business fails. While, according to Obama, he is never responsible for its success, he is responsible for its failure.

In what passes for the Liberal mind, profits are to be socialized via confiscatory taxation but risks are to remain purely privatized. The collective mind demands accolades but spurns jeers, whether either come from individuals or the impersonal forces of the market.

Caveat: Size Matters

This all changes when the business is a very large corporation.In those rarefied, “too big to fail” instances, it will always be the tax payers that get saddled with the failed business’ debts. And, of course, the government will step in to determine just which creditors – their donors and supporters – actually get paid and which get told to shut up or face the consequences.

Related Reading:

Economics: A Free Market Reader
Things That Matter: Three Decades of Passions, Pastimes and Politics
Amsterdam: A History of the World's Most Liberal City (Vintage)
The Free-Market Innovation Machine: Analyzing the Growth Miracle of Capitalism
The Financial Crisis and the Free Market Cure: Why Pure Capitalism Is the World Economy's Only Hope

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