I am writing this note inspired by the book by David Graeber – “Debt – The First 5000 Years”. David teaches anthropology at the LSE (London School of Economics). I do not claim expertise in liberal science, but I am extremely moved by this subject, especially the manner it has been dealt in this book. Through this note, I also plan to solidify my own learnings, which might as well serve as future reference for me and others.
What is Debt?
As per Oxford Dictionary, debt is the state of owing money or a feeling of gratitude for a favor or service. Debt disturbs the equilibrium (hierarchy) between individuals. Hence, the individuals in debt are always under pressure to restore the equilibrium – making debt a moral issue. As only when it is paid off, the equilibrium can be restored, freeing individuals of his obligations. The pressure of paying back one’s debt is very high between acquaintances than strangers. That explains why gifts are always returned and monetary debts taken from commercial entities are not.
