Biologists sometimes point out the valuable service provided by a host of organisms, from hyenas to bacteria, which break down the bodies of dead plants and animals and return their constituent parts to the soil, whence miraculous Nature brings forth fresh plants and animals. These organisms may not be the sort we would like for our pets; but we owe them our gratitude.
When a business enterprise fails, there are almost always constituents which can be re-cycled: plant, work-in-progress, raw materials, even people. Insolvency practitioners may not be your favourite group of professionals; but they are vital to a healthy economy.
Austrian economists are aware, as Keynesians seem not to be, that busts in the business cycle are part of the process of recovery. The Keynesians frantically attempt to keep booms going by borrowing and stimulating demand. Booms are the disease; busts are the cure. We would not have busts without booms. Of course, booms feel good and busts hurt.
The Austrians understand that it is production that creates wealth, not consumption. They preach that capital is accumulated when people defer their consumption. The Austrian theory is entirely consonant with traditional virtues: thrift, hard work, honesty. The miracle of the market brings rewards for all. The idiocy of the Left lies in thinking that experts and legislation can solve all problems. Milliband thinks that we should punish asset strippers.