Journalist Megan McArdle's new book, The Up Side of Down (about how failing well is the key to success), is sure to challenge both conservatives and liberals. When it comes to irking conservatives, McArdle argues that conservatives worry way too much about moral hazards.

For example, she notes that America's liberal bankruptcy laws actually benefit our nation. "Because of easy bankruptcy," she says, "we get more entrepreneurs." This is true for a few reasons. First, she says, "It's a lot easier to take a risk if you're not worried that your kids are going to end up with nowhere to live." And second, because "a lot of entrepreneurs fail the first time — and so if you shackle them to their debt...then you don't get that second company that would have been successful."

You can listen to audio of my full conversation with McArdle here.