the new bankruptcy legislation failed to account for hundreds of thousands of entrepreneurs, independent contractors and self employed individuals who traditionally have turned to bankruptcy relief as an important safety net in their effort to recover from a failed undertaking.In other words, by allowing lenders to squeeze the poor for every last penny, Bush and his conservative fellow-travelers have once again damaged a feature of our culture that has made us great.
As Daniel Gross points out in ,
America's economic system is exceptional in part because it encourages, pardons, and excuses failure. Nobody starts a business intending to go bankrupt, but it happens. And when it does, the nation's bankruptcy system—and its general tolerance of failure—has enabled people to pick up, move on, and try again with relative ease. In today's economy, which affords people unprecedented opportunities to start their own businesses, credit cards are frequently the preferred method of financing. So, while the new bankruptcy law might deter some people from overborrowing, it might also deter some people from leaving their dreary jobs and opening a store, or selling on eBay, or importing T-shirts. At the margins, lots of mundane businesses, and perhaps even a few great ones, may never get off the ground.By contniuing the conservative trend of shifting risk from large organizations (businesses and government) to the individual, Bush is helping make our country a less attractive place to live and a less attractive place to innovate. How foolish can they be.