What is the origin of debt, according to David Graeber?

David Graeber (1961–2020) was an influential American anthropologist, activist, and author known for his critical insights into economics, politics, and social structures. His work combined rigorous anthropological research with a provocative critique of contemporary capitalism, bureaucracy, and inequality. Graeber’s contributions spanned academic, activist, and public intellectual spheres, making him a prominent figure in both scholarly and activist communities.

Born in New York City, Graeber studied anthropology at SUNY Purchase before earning his Ph.D. from the University of Chicago. He later taught at Yale University, where his tenure was marked by both acclaim and controversy, ultimately leading to his departure—a situation many attributed to his political activism. He subsequently joined Goldsmiths, University of London, and later the London School of Economics.

Graeber’s work often focused on the intersection of anthropology and economics, challenging conventional narratives about money, debt, and labor. His book Debt: The First 5,000 Years (2011) is one of his most celebrated works, offering a sweeping historical analysis of debt as a social construct. In it, Graeber argues that debt has historically been tied to power dynamics, often serving as a tool of social control rather than merely an economic instrument. The book was widely praised for its interdisciplinary approach and its ability to make complex economic ideas accessible to a general audience.

Another of his influential works, Bullshit Jobs: A Theory (2018), explores the phenomenon of seemingly meaningless or unfulfilling jobs in modern economies. Graeber contended that many people are employed in roles that contribute little to society but persist due to bureaucratic inefficiencies or systemic inertia. The book struck a chord with readers worldwide, sparking discussions about the value of work, productivity, and the nature of contemporary capitalism.

Beyond his scholarly contributions, Graeber was an active participant in social and political movements. He was a prominent figure in the global justice movement and played a significant role in the early days of Occupy Wall Street, where his ideas about direct democracy and consensus decision-making influenced the movement’s structure and goals. Graeber’s activism reflected his broader commitment to imagining and advocating for alternative ways of organizing society.

Graeber’s untimely death in 2020 at the age of 59 was widely mourned by colleagues, students, and admirers. He left behind a legacy of bold, interdisciplinary scholarship and a passionate commitment to challenging the status quo. His work continues to inspire discussions about economics, politics, and the possibilities for a more equitable and meaningful society.

In his seminal book Debt: The First 5,000 Years (2011), Graeber challenges conventional economic theories about the origin of debt. He argues that debt is not merely a financial or economic tool but a deeply rooted social construct tied to human relationships, morality, and power. His perspective diverges significantly from the mainstream economic narrative that debt emerged as a natural evolution of barter systems.

The traditional economic view, rooted in classical and neoclassical economics, suggests that barter was the initial mode of exchange in human societies. This theory posits that as barter became cumbersome, money was invented to facilitate trade, and debt arose later as a secondary concept once money was established. Graeber dismantles this idea by drawing on anthropological and historical evidence, arguing that there is little evidence of societies relying primarily on barter systems. Instead, he proposes that debt predated money and markets and originated as a social obligation.

Graeber’s analysis highlights how debt emerged in the context of human relationships and reciprocity. In early societies, obligations between individuals were often informal and based on trust. People exchanged goods and services without immediate repayment, creating a system of mutual indebtedness that reinforced social bonds. These obligations were not quantified in monetary terms but were understood as part of the fabric of community life. Debt, in this sense, was a moral and social concept before it became an economic one.

He traces the institutionalization of debt to the rise of state power and organized religion. With the advent of large-scale agrarian societies, rulers and religious institutions began codifying debts and obligations, often in terms of grain, livestock, or other goods. Temples and palaces served as centers of economic administration, keeping records of debts and payments. This formalization of debt introduced a new dynamic: the use of debt as a tool for control and exploitation. Graeber points out that early records from Mesopotamia, such as the cuneiform tablets of ancient Sumer, document debts owed to temples or state authorities rather than between individuals, illustrating how debt was closely tied to power structures.

Graeber also explores the moral dimension of debt, noting how it has historically been intertwined with ideas of guilt and obligation. The word “debt” in many languages shares roots with terms for sin or moral failing, reflecting a longstanding association between owing money and moral inadequacy. This linkage has been used by states and elites to justify social hierarchies and the subjugation of debtors, turning debt into a mechanism for reinforcing inequality.

According to Graeber, the invention of money and markets further entrenched the role of debt in human societies. Money, he argues, did not emerge from barter but was often introduced by states to facilitate taxation and enforce debt obligations. States would mint currencies, impose taxes payable only in that currency, and thereby create demand for money. This dynamic effectively compelled individuals to participate in the monetary economy, often indebting themselves in the process.

Throughout history, debt has been a source of both social cohesion and conflict. Graeber highlights cycles of debt crises and debt forgiveness in ancient civilizations, such as the practice of “jubilee” in Mesopotamia, where rulers periodically canceled debts to prevent social unrest. He contrasts these historical practices with modern capitalism, where debt is seen as sacrosanct, and mechanisms for large-scale debt forgiveness are rare and highly contentious.

In Graeber’s view, the origin of debt is deeply intertwined with the evolution of human societies, reflecting a mix of mutual obligation, moral judgment, and power dynamics. Debt, far from being a neutral economic instrument, has been a central mechanism for shaping relationships and hierarchies throughout history. His analysis challenges readers to reconsider the nature of debt and its role in contemporary society, inviting questions about its morality, utility, and potential for transformation.