6/27/20 Mike Swanson on America’s ‘Zombie Firms’

Mike Swanson discusses the continuing economic fallout from the coronavirus, focusing in particular on what are sometimes called “zombie companies.” These firms stay afloat largely because of easy money available at low interest rates, even though their business may be fundamentally unsound. Crucially, the government response to the coronavirus has continued to enable this behavior by bailing out firms that would otherwise go bankrupt. Swanson argues that in a healthy environment such firms should be allowed to go bankrupt—a vital feature of any market economy—as would huge sectors of American business that have been kept alive by decades of artificially low interest rates. Scott and Swanson worry about the powder keg created by years of unwise policy by the U.S. government, and about the spark that could be provided in the form of the coronavirus shutdowns.

Discussed on the show:

Mike Swanson provides investment advice at wallstreetwindow.com and is the author of The War State: The Cold War Origins Of The Military-Industrial Complex And The Power Elite. He also works with the Neopolis Media Group, a group of historians, educators, authors, researchers, and free speech advocates who endeavor to provide original and engaging content, including The Ochelli Effect, and The Lone Gunman Podcast.

This episode of the Scott Horton Show is sponsored by: NoDev NoOps NoIT, by Hussein Badakhchani; The War State, by Mike Swanson; WallStreetWindow.com; Tom Woods’ Liberty ClassroomExpandDesigns.com/ScottListen and Think AudioTheBumperSticker.com; and LibertyStickers.com.

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