Zombie Companies: What Are They and Why We Should Be Afraid | Economics

As the pandemic raged on and the economy struggled to keep up, fewer companies went bust than expected. It was the result of a careful mix of policies, including furlough schemes to cut wages, state-backed loans to boost liquidity, and laws to prevent bankruptcies. These policies worked, successfully saving countless companies from going under. But some experts warn that surviving solely on cheap debt and government aid comes with an unhealthy side effect. Enter the zombie companies: the walking dead of the corporate world who feed off the still-living.

In this riveting documentary, viewers will get a glimpse into the world of zombie companies and learn how this phenomenon could shape our post-pandemic future. We’ll explore the factors that contribute to zombification, from high levels of corporate debt to the unintended consequences of well-intended policies. Experts weigh in on the impact of zombie companies on the economy, their potential to hinder innovation and job growth, and what can be done to avoid their rise. Tune in for a thought-provoking discussion on the future of business in uncertain times.