> You must have a way of paying the debt back, or you wouldn't have been able to obtain the resource you did on a promise
This simply isn't true. On small scales, people lose their businesses and families declare bankruptcy. That's why I said this isn't a hypothetical. And on a large scale it causes financial collapses if many people go bankrupt at once.
It simply is true. But under capitalism plans don't always work out. That's how it is supposed to work. Things are tried and some fail. That way is progress and productivity.
We have system autostabilisers that rebalance the ship when the private sector has a blow up.
Bankruptcy is the reset mechanism. It's a mechanism that actually works, unlike the debtors' prisons we had previously.
This simply isn't true. On small scales, people lose their businesses and families declare bankruptcy. That's why I said this isn't a hypothetical. And on a large scale it causes financial collapses if many people go bankrupt at once.