Mass Effect Redemption Summary: Uncovering the Primordial Debt Theory in Economics

David Graeber's work, 'Debt: The First 5,000 Years', has sparked intense debates within the academic community regarding the origins of money and debt. One of the central arguments he makes is that humans start off with infinite debt to the cosmos, which naturally leads to a socialistic logic where the government has total control over money and the market. This concept is often referred to as the 'primordial debt theory' or 'socialist/primordial debt theory of money'.

Graeber's thesis challenges the traditional liberal/capitalist view of Adam Smith, who assumed that humans start with no debts and only begin trading freely once they have established a market economy. In contrast, Graeber argues that credit was the first mode of economic behavior, predating even the concept of money. He suggests that pre-money societies were not dominated by barter, as many economists believe, but rather by neighbors keeping tabs on the goods they give to each other in aid (credit).

Graeber's critique of Smith's work is based on his interpretation of historical events. He argues that the history depicted by Smith, where bartering came before money and then credit, is actually reversed. In reality, pre-money societies were characterized by a complex system of credit and debt, which was only later replaced by the use of money.

Graeber's project in the first four chapters of his book is to dismantle two popular economic ontologies: the liberal/capitalist theory of Adam Smith and the socialist/primordial debt theory. However, some critics have argued that Graeber cherry-picks his data and presents a biased view of economic history. While his arguments are illuminating, they may not be entirely accurate.

Despite these criticisms, Graeber's work has had a significant impact on the field of economics, challenging long-held assumptions about the nature of money and debt. His primordial debt theory offers an alternative perspective on the origins of money and the role of government in the economy. As economists continue to grapple with the complexities of economic systems, Graeber's work serves as a reminder that there may be more to the story than what is often presented in traditional textbooks.

Mass effect redemption summary