Kevin Drum asks:
The more I read about the bankruptcy bill the more perplexed I get. Liberals don’t like it. Moderate liberals don’t like it (Bill “DLC” Clinton vetoed it the last time it cropped up). Conservatives aren’t really very excited about it. And it’s sponsored by the credit card industry, which is roughly the 21st century equivalent of being sponsored by the German Bund.
So how is it getting such wide support?
UPDATE: I’m getting a number of emails like this one:
I thought libertarians were in favor of respecting private property, individual rights, individual responsibilities, freedom of contract, etc. Isn’t present Bankruptcy law (the fundamental purpose of which is to allow a party who freely entered into a contract to repudiate their obligations under the contract) contrary to basic libertarian values? Wouldn’t the present reform proposal help correct the anti-freedom nature of bankruptcy law?
Well, as I wrote earlier, it seems to me that many of the credit-card industry’s come-ons are near-fraudulent. Libertarians aren’t supposed to approve of fraud. And if people are supposed to live with the consequences of their actions, then why shouldn’t credit-card companies live with the consequences of extending credit to poor risks?
At any rate, if bankruptcy law is “anti-freedom.” then what’s pro-freedom? Debtor’s prison?