The Relevance of Ancient History to Modern Economic Crises
Throughout history, societies have grappled with the power struggle between governments and oligarchs, often leading to economic upheaval and social inequality. In ancient times, governments acted as creditors rather than debtors, using general-purpose money to collect payments on credit extended during agricultural and trade cycles. However, todayʼs budget deficits and privatizations result from the avoidance of taxing land, natural resources, and monopoly rents, allowing wealth to accumulate in the hands of a rentier class.
A recurring theme is the conflict between government fiscal policies and oligarchic interests. Wealthy families historically sought to evade fiscal obligations through debt leverage, leading to the consolidation of power and economic collapse. While rulers in ancient Mesopotamia countered this by proclaiming Clean Slates to cancel debts, this practice faded in later antiquity, leading to irreversible debt servitude and economic inequality.
Debt bondage and usury have far-reaching consequences, including the levying of interest and penalties that exceed borrowersʼ ability to pay, resulting in loss of personal liberty and land rights. Land becomes concentrated in the hands of creditors-turned-landlords, leading to sharecropping arrangements and the shift from traditional food production to lucrative export crops. Economic polarization weakens societies, with the burden falling on the poorer classes.
Foreclosures on debtors, depopulation, and the rise of mercenary armies further exacerbate social unrest. Policy debates surrounding debt problems evolve, with religion and philosophy reflecting creditor-oriented values. Wars are waged to seize foreign surplus and resources, leading to enslavement and, in modern times, financial conquests for privatization and financialization.
The cycle of economic exploitation and societal inequality persists, highlighting the enduring struggle between governments striving for social equity and oligarchs seeking to maximize wealth and power.
🔭 This summary was human-edited with AI-assist.
