Corporate bankruptcies are on the rise in the United States as companies suffer from sagging sales and the tight credit markets. Already in 2009, corporate bankruptcy has risen to 33 companies as compared to 14 corporate bankruptcies in 2008. The assets of those 33 bankrupt companies are a combined $66.7 billion, the size of one the smaller bail outs delivered to companies this year.
But what does the rising amount of corporate bankruptcies mean for the average American? Well, for one, bankrupt companies usually suffer from large job losses even if they are not liquidating. And sometimes bankrupt companies drastically change/reduce compensation packages for non-union and union workers alike as they try to put their balance sheets into the black and negotiate with creditors. Those 33 bankrupt companies are just the beginning of corporate bankruptcies we can expect to see in 2009. And as more companies go bankrupt we can expect to see large scale job losses in America as well as a lower standard of living as those desperately searching for work are willing to work for less.