What’s good for GM is good for America, but what’s good for regular citizens isn’t?

As Robert Reich points out in American Prospect, there’s a double standard in bankruptcy law. While the recent bankruptcy bill makes it harder for regular citizens to declare bankruptcy, corporate bankruptcy law continues to allow large businesses to operate while sloughing off their obligations to employees and shareholders.

Corporations can declare bankruptcy and gain protection from creditors whether the underlying reason was a genuine catastrophe or sheer mismanagement. Under the new law, even consumers who face crushing debts because of genuine uncontrollable catastrophe (like a medical emergency) are denied the benefits of brankruptcy.

In the first quarter of this year, consumer spending represented 71% of TOTAL US economic output (GDP). Individual citizens drive the US economy, and what’s good for consumers IS good for America. Citizens who face severe financial constraints because they have a medical catastrophe should have at least the same breathing room offered to corporations.

Individual citizens should be entitled to the same protections as large corporations.

James Weingarten is a new member of the team and fellow law student. A formal introduction to the newest members of our blog team is forthcoming. -MN