in_the_media

Patriot bankruptcy outcome could leave lasting effects on coal industry

Media Outlet: 

Bloomberg, WDTV (West Virginia)

Arch Coal and Peabody Energy spun off their unionized mines into a new company, Patriot Coal Corp., which some say was designed to fail. Now it's going through Chapter 11 reorganization and hoping to emerge freed of the pensions and medical care of miners while competitors must honor their obligations. "Corporate socialism is a system that privatizes profits and socializes costs," said Bruce Rader of Temple's Fox School of Business. "If that is considered capitalism, then Al Capone is right in his statement: 'Capitalism is the legitimate racket of the ruling class.'"