The Adam Smith Institute's report "The Trading Dead: The zombie firms plaguing Britain’s economy, and what to do about them" was featured in a Fox Business news article.
The corporate zombie debate is on fire in the U.K., with 108,000 bankrupt firms still operating in Great Britain due to easy money, barely earning enough to pay the carrying costs on their loans, estimates the Adam Smith Institute, a free-market research shop.
It argues banks should quit giving money to the corporate undead, because it distracts funding away from healthier companies that can create jobs. Instead, it says these companies should be put to rest or restructured, to clear the way for more innovative companies.
"Low interest rates and bank forbearance represent a vast and badly targeted attempt to avoid dealing with the recession,” said Tom Papworth, senior fellow of the institute. “Rather than solving our current crisis, they risk dooming the U.K. to a decade of stagnation."
Papworth added: "We tend to see zombies as slow-moving and faintly laughable works of fiction. Economically, zombies are quite real and hugely damaging, and governments and entrepreneurs cannot simply walk away."
Read the full article here.