Businesses welcome to Illinois. Now here is a state that you want to do business in. A warm, friendly economic environment greets you. Little governmental intervention unless you are the Governor or a Reverend. I am astounded at the Republic Windows and Door debacle that is currently taking place in Chicago. I am also astounded at the Governor's incredible economic plan to stop doing business with Bank of America as punishment (punishment for what?).
Thus as an economist, I must understand Economics 101 in a now liberal, nationalized economy.
Here is what used to occur. A company is doing poorly for a variety of reasons, possibly lower sales, increased competition, excessive federal, state and local governmental taxes and regulations, excessively high wages and benefits, higher inputs costs, etc. The bank that they are doing business with decides by analysis of their financials that they are a high credit risk, have no other assets/future sales to borrow against and pull their line of credit. No more money is available to this company to continue their operations. The company then must close its operations because it no longer has any money to pay its bills or its employees. All of its employees are laid off, the company then decides on bankruptcy and the private business cycle falls into place with firms leaving an industry due to a lack of profit.
In New World Liberal Economics, a company should have been making a profit so that local, state and federal governments could have taxed the profit at a 100% level to continue to finance their deficit spending and redistribution of wealth. The bank they are doing business with does not have to analyze any financials or sales, they just will continue to lend them money to infinity. The company even though it may be losing money and sales will continue to give massive pay and benefit increases to its employees. And finally bankruptcy is outlawed in our economy. We now have an Utopian economy where the business cycle no longer exists. I guess I need to reeducate myself on everything that I have learned about economics over 35 years. I never thought I would see this in my lifetime.
And I guess I will never open a business in Illinois and I guess many others will not either.