Bankruptcy – financial or philosophical?

I’ve been listening one of Steve Keen’s lectures.

He is challenging as ever.

But he says – and this speaks to me having been within touching distance of bankruptcy – “without bankcruptcy you’d have a complete collapse of the economy”.

It is, therefore, extraordinarily odd that bankruptcy prevents you from being an MP. This suggests that the debtor’s prison (abolished in 1869, with Dickens’ help) is still in the psyche of the legislators. If the government wants entrepreneurs to flourish then they should realise that bankruptcy is in the same territory. They don’t really, of course – they think tax exile Branson is an entrepreneur.

As for me, fortunately the bank accepted my offer of about 60% of the loan (basically unpayable after a major PLC customer went bust) without taking the house. I consider that it was a close shave – especially as the bank in question was RBS. The moral is always have two bank accounts – with different banks – and that is the best decision I ever made.  And the only way I survived. When a bank stops credit they think they have you. But not if you’re taking money and you still have a bank account with another bank they don’t!

Which leads me to wonder why on earth are you forbidden to be an MP if you have been financially bankrupt? Particularly when we desperately need ideas from our MPs and yet too many seem to be philosophically, just that.


  1. Ms Christine Bergin -

    Maybe bankruptcy is thought to equate with trustworthiness in some way. This idea doesn’t seem to hold for USA though and they have ended up with Trump who has multiple bankruptcies in his history

  2. Peter May -

    Thanks for the link – as you say, it’s not clear. I suspect that’s why it was always said that bankruptcy disqualifies you – such that I never looked it up!

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