Comment by s1artibartfast

>When a company is liquidated, I doubt enough of its assets are reinvested to make of the event an overall positive for the economy.

Where do you think they money goes? it is almost always reinvested. If it wasnt reinvested but spent, it wealth couldnt transfer upward.

The rich would lose 5% of of their value of any cash assets to inflation every year. Instead, the money has to be invested in something.