Corporate bankruptcies have spiked this year—a trend that seems poised to continue as rising costs eat away at consumer spending. According to S&P Global Market Intelligence, more than 450 major businesses have gone belly up so far in 2023.
That’s higher than the total number of businesses that failed in each of the previous two years. It’s also the highest single-year for bankruptcy filings since 2010.
Is this a surprise? In challenging economic times we can have bailouts or bankruptcies. If we don’t want to privatize our gains and socialize our losses then bankruptcies it is.