An Ancient Sumerian Solution to Our $40 Trillion Deficit
In the ancient world, debt forgiveness was a regular tool to control the economy. Why have we forgotten it?
The concept of debt forgiveness, also known as debt jubilee, has been largely absent from modern economic policy discussions. However, as the US faces a staggering $40 trillion deficit, some are looking to ancient civilizations for inspiration. In ancient Sumeria, debt forgiveness was a regular practice used to reset the economy and alleviate the burden on citizens. This practice was often tied to significant events, such as the coronation of a new king or the occurrence of a natural disaster.
The idea of debt forgiveness has largely fallen out of favor in modern times, replaced by more conventional approaches to managing debt, such as austerity measures and monetary policy. However, proponents of debt forgiveness argue that it could provide a much-needed solution to the country's growing debt problem. By wiping the slate clean, the government could stimulate economic growth, reduce poverty, and promote financial stability. This approach may seem radical, but it's worth noting that many developed countries have implemented similar measures in the past, such as Iceland's decision to forgive mortgage debt in the aftermath of the 2008 financial crisis.
As the US continues to grapple with its massive deficit, it's likely that policymakers will be forced to think outside the box. While debt forgiveness may not be a straightforward solution, it's an idea that warrants further exploration. What's next to watch is whether politicians will seriously consider debt forgiveness as part of a broader economic strategy. Additionally, the impact of the COVID-19 pandemic on global debt levels and the increasing popularity of Modern Monetary Theory (MMT) may also influence the conversation around debt forgiveness and its potential role in shaping economic policy.
Originally reported by nytimes.com. NewsAvenue adds analysis for general news readers.