Bankruptcy Still Best

Conn Carroll /

Heritage analyst Andrew Grossman will be discussing the auto bailout with Wall Street Journal Former Detroit Bureau Chief Paul Ingrassia, Competitive Enterprise Institute General Counsel Sam Kazman, and Mackinac Center for Public Policy Senior Economist David Littmann. The panel can be seen live here at 10:30, and will also be available for viewing afterward.

Here’s a quick preview of Grossman’s thoughts on the subject:

Bankruptcy Law Exists for a Reason

With recent job losses across the economy, lawmakers are understandably nervous to subject themselves to the charge that they have allowed further business failures, and more job losses, to occur on their watch. But this charge is easily rebutted, for it misunderstands the role of bankruptcy law in revitalizing businesses. Properly understood, reorganization in bankruptcy represents the best chance for General Motors and Chrysler to survive and prosper.