On Being in Debt

The economic systems of today rely upon credit. I'm no economist, but it's obvious that if all of us had to pay as we go, then our resulting economic systems would be unrecognizable compared to today. Expensive consumer goods, like cars and houses, would have to be purchased with cash. Business growth would slow to a crawl without outside financing. And governments would have no choice but to balance their budgets. It is precisely the billions of contracts and agreements between debtors and creditors that make our economic systems possible.

Debt is a powerful, powerful tool. With it, we can build cities and skyscrapers and businesses, on credit, and employ millions of people that produce goods and services to be sold to millions of other people, on credit. It's at the heart of our most predominant social structures. Can you imagine a society without debt? It would certainly not be anything like what we see today.

Interestingly, debt is also one of the very few areas in which we all agree, as a society, that one party may take the property of another. (I have found only two such social arrangement: debt and taxes.) In exchange for the enormous social benefits realized through debt, we have all agreed that creditors may rightfully take the property of debtors in case of delinquency, for such taking is for the greater good. (It is this "taking for the greater good" idea that is also at the heart of taxes.)

So debt is good for us all, right? With debt, we live a better life and are more able to raise a family and carry on as a species, right? But if debt is such a good idea, why don't we find it in Nature (for I've looked closely, and it's not to be found)? In Nature there is "giving" and "reciprocity" and perhaps "gratitude", which are sort of "debt-like", but I've not found "borrowing" and "owing" and "interest" and "collecting". And it should be there in Nature, shouldn't it? After all, debt is about acquiring "stuff", and all living creators require "stuff", right? Wouldn't the bird enjoy a nicer home? The squirrel, more nuts through Winter? Or is there a downside to debt that we overlook? A downside so enormous that it disrupts the very fabric of Nature and therefore cannot be part of Nature's design?

To find the downside, we need only look as far as the human spirit. Because while debt feeds the body, it also starves the spirit. By acquiring all the new things that we desire, we leave less room to appreciate what we already have. By having all of our physical needs met so easily, we leave less room to help each other in times of trouble. By being dependent upon our economy for our very sustenance, we lose our faith that Nature would also provide, if we gave her the chance. We become slaves to the social systems that we have created, and we feel vulnerable and helpless.

Maybe that's why debt is not part of Nature's design. Better to live simply and have faith that all the things needed by the body will be provided. So the bird builds her simple nest each year, and it is enough. And the squirrel gathers his nuts in Autumn, and it is enough. They enter into no contracts, and they are free. And they know that Nature is a good and fair partner. One that never charges interest.