Why Are So Many American Companies At Risk of Bankruptcy

In 2023, 642 American companies declared bankruptcy, the highest since 2008. Private equity (PE) firms, which manage nearly $1.4 trillion in assets, significantly impact the U.S. economy. These firms have acquired thousands of companies, often using leveraged buyouts, where the acquired company shoulders the debt. This approach has led to increased bankruptcy risks and negative effects on industries like healthcare and education. Despite generating large profits, PE firms have caused business closures, job losses, and a decline in service quality, raising concerns about their growing influence and the future of the U.S. economy.

Produced by: Samantha Harvey
Edited by: Jacob Smith
Animation: Charlotte Brown
Additional Footage: Getty Images

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