Democracy depends upon the continued existence of a large and happy middle class. In cultures without a strong middle class, democracy is threatened. A large class of poor people and a small rich class will soon part company. But, a small rich class and a large and happy middle class and a relatively small class of poor people maintainnand support a thriving democracy. During difficult financial times, middle class and upper middle class people seem to suffer most visibly.
Bankruptcy supports the existence of a large and happy middle class. It allows for a fresh start for those of us who have suffered through these difficult times. A fresh start ensures democracy and preserves the middle class. Bankruptcy is democracy in action. Like bailouts for other democratic institutions such as banks, motor vehicle manufacturers and large insurance companies, bankruptcy ensures that our democracy will survive.