Debt, Credit, Interest, 3

And finally out of debt/credit comes the risk also: the possibility that things go wrong and the debtor cannot return the loan or even steals it. So what about ethics of bankruptcy laws? On one hand, the bankrupt has to account for his or her mistakes, and the community would protect itself from the risk of recidivism. But on the other hand, too heavy and permanent consequences after a bankrupt would deprive the community of the potential for success left in the bankrupt. Attempts are a form of investment, and many great forward steps required many attempts and persistence. What about the ethics of the privilege of limited liability granted to legal persons, which is liable to represent a break of the equality of rights compared to its denial to natural persons? On one hand, the limited liability is an incentive to conduct a legal person less scrupulously than a natural person, an abuse the community would protect itself from; but on the other hand, too downright a ban of this form of dumping a share of business risk on third parties would deprive the community of the yield potential of business success. The controversial privilege of limited liability is a form of investment, too: the wager that there are more ethical people than unethical people. So, basically in the debt/credit related risk as well the point is estimating the most benefit for all: as the initiative of individuals represents for the community an investiment in the potential that makes it progress, it takes on a share of the related business risk; it's just a question of honesty and fair proportions.