Primordial-debt Theory

“The core argument is that any attempt to separate monetary policy from social policy is ultimately wrong. Primordial-debt theorists insist that these have always been the same thing. Governments use taxes to create money, and they are able to do so because they have become the guardians of the debt that all citizens have to one another. This debt is the essence of society itself. It exists long before money and markets, and money and markets themselves are simply ways of chopping pieces of it up.”

-At first debt was expressed by religion, not states. See the Sanskrit religious literature like the Vedas and Brahmanas. Earliest Vedic poems from like 1500-1200 BC are very concerned with debt, which is “treated as synonymous with guilt and sin.”

-In very early texts, “Debt seems to stand in for a broader sense of inner suffering, from which one begs the gods… for release.”

-The Brahmanas started weaving together a more comprehensive philosophy in which human existence itself is a debt to the gods. “A man, being born, is a debt; by his own self he is born to Death, and only when he sacrifices does he redeem himself from death.”

-Leads to the question, “If our lives are on loan, who would actually wish to repay such a debt? To live in debt is to be guilty, incomplete. But completion can only mean annihilation.” So the tribute of ritual sacrifice is like an interest payment, and the sacrificer’s life is the principal.

-Two famous passages in the Brahmanas: “We are born as a debt not just to the gods, to be repaid in sacrifice, but also to the Sages who created the Vedic learning to begin with, which we must repay through study; to our ancestors, who we must repay by having children; and finally, to humanity as a whole, to be repaid by offering hospitality to strangers.”

-Primordial-debt theory say these ideas aren’t peculiar to “a certain intellectual tradition of early Iron Age ritual specialists in the Gange valley, but that they are essential to the very nature and history of human thought.”

-Sovereign powers’ legitimacy comes from their representation of the entire cosmos, and so they invented money as a way of settling debts. So instead of owing the unpayable debt of your life to death, now you have money that you can use to settle more manageable debts. That currency is put into circulation, and then you have to repay it in taxes, and that is a much more reasonable ask than “You owe your life to the God of Death.”

-“The primordial debt is that owed by the living to the continuity and durability of the society that secures their individual existence.”