An anthropological treatise on the now fashionably despicable word, debt, is an uncommon sighting in financial circles; which is why David Graeber’s book gives reason to pause and ponder. Graeber’s tome is an ambitious revisionist argument of humankind’s history with debt, including the social aspects. He challenges the widely believed arrow of causality (barter, money, credit) by positing the reverse. The Utopian world of barter was a natural progression from a credit and money system. Money emerged as a consequence of a state-led movement towards creating and nurturing markets; primarily to fuel the state’s war machine, in ancient times. Essentially, all forms of money are debt.
This lays the spotlight on the diabolical nature of debt, as Graeber presents the money-morality paradigm through the central question: Can debt, or more generally money, serve as a quantifier of morality; converting altruistic emotions into series of financial transactions? Monetary debt’s precise quantification makes it easier to assign moral failure on defaulters. Once monetary obligations became inextricably linked to a borrower’s perception of honour and self-worth, debt morphed into a measuring instrument for emotions.
The fractious relationship between the creditor and the debtor — the debate of the haves versus the have-nots, in the present-day context — is explored at length. Strangely, our sense of morality and righteousness impels us to look askance at defaulting debtors. Simultaneously, creditors at the other end of the transaction warrant similar treatment. Debt seems to create its own moral hierarchy among societies. This paradigm forces a rethink on those dealing with squelching inequalities. In the present-day credit-based world, it begs a pointed question: is elimination of inequality a Utopian pursuit?
The book highlights the concept of indebtedness as a common thread across religions. The focus on redemption of sins — debt repayment — is one example of religions calibrating spiritual and religious matters in financial terms. The bidirectional relationship between a parent and a child is akin to perpetual debt, one that cannot ever be repaid. Extending the ‘financialisation’ to other human interactions – marriages – takes the reader into a politically incorrect cocktail conversation zone.
The darker aspects of mankind’s tryst with debt are explored through the lens of the credit-slave exchange trade, human pawn trade, origins of dowry and prostitution. Debt defaults are an institutionalised process throughout history. The ‘financialisation’ of moral obligations creates a situation where we begin to justify otherwise immoral behavior. We indulge in ‘financialisation’ but prefer to remain ignorant about it.
History buffs are likely to find this book a thought-provoking, albeit slow, read on humankind’s financial evolution. Admirers of economic history are likely to discern a perspective about debt that they seldom ruminate over. Among the book’s positives is its striking tenor at laying out the darker aspects of humankind’s history which is generally left untold or gift-wrapped in politically correct narrative by historians. Other merits include its comparative exploration of history through cycles; highlighting similarities and idiosyncrasies separated by time. On the down side, the tome is academic in temperament and demands sustained concentration. Graeber’s volume is a readable provocative revisionist narrative of humankind’s tryst with the D-word.
— hemant.sreeraman@gmail.com