I’ve been reading lately both about American history and the establishment of the National Bank, and the loans tried to be negotiated with the Dutch banks during the Independence War. At the same time, I’ve read a lot of folks having their Credit score lowered because of paying off either their cars or their student loans. Shouldn’t it be better if you didn’t ave any loans at all?
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Debt is a matter of formal accounting but the concept of debt is almost built into human civilization.
For example, if there was a small community that shared certain communal efforts like the community gathers together to build each others homes, stables etc. The idea of collective effort to build long term benefits (everyone sharing to build a road, for example) is, by its very nature a debt. Borrowing current effort and paying it back in future benefits to the community.
In the broadest sense, for humans to build civilization and societies, some form of collective effort is necessary. So if someone wants to build a factory, they borrow resources from a communal pool to set up the factory. If they do this right, then the factory enhances the total welfare of the community and the debt is paid back either formally or through the benefit of increased productivity and output.
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