This is an interesting discussion. At first blush, I would have to say that I agree with Ms. McArdle (who is pretty much responsible for the existence of this blog); I understand the notion that those defaulting on their debts aren't doing anything wrong - they are following the law and the stipulations in the contracts, so what they're doing is ok.
Then I wonder if we're confusing an out clause with a penalty. Bankruptcy isn't really part of a mortgage agreement or having a credit card. It's what you turn to when you have no other option.
The commenters on Ms. McArdle's blog make very good points (as they tend to), and compelling cases are made on either side of the argument.
Then I think, if you take out a loan and agree to pay it back, you should pay it back. It really is that simple.
Standardized test scores are not everything. But they are something, and to
the extent they tell us how well our K‑12 system is working, we have
clearly be...