[HN Gopher] Observations on Credit and Lending Practices in Ur I...
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       Observations on Credit and Lending Practices in Ur III Mesopotamia
       (2004) [pdf]
        
       Author : throw0101b
       Score  : 74 points
       Date   : 2023-09-16 13:05 UTC (9 hours ago)
        
 (HTM) web link (www.sfu.ca)
 (TXT) w3m dump (www.sfu.ca)
        
       | mriet wrote:
       | Sounds like it's related to Graeber's book, "Debt, The First 5000
       | Years".
        
         | syndicatedjelly wrote:
         | Is that worth reading for someone casually interested in
         | economics and its history? Or is it pretty dense and technical
        
           | rubidium wrote:
           | I found it to be good for casual people economic history.
           | Wasn't overly "economics" in the technical sense.
        
           | abdullahkhalids wrote:
           | It is not technical at all. But it is more dense than a
           | typical non-fiction book you read these days. Also heavily
           | referenced like a scholarly work.
           | 
           | I would highly recommend reading it, as it exposes you to the
           | many biases in the orthodox framework of economic thought
           | prevalent in the world today.
        
           | rufus_foreman wrote:
           | There are single sentences in that book that have half a
           | dozen factual errors.
           | 
           | So, you decide if that is worth reading.
        
         | [deleted]
        
           | [deleted]
        
         | Mistletoe wrote:
         | Another book in this vein is The Price of Time: The Real Story
         | of Interest by Edward Chancellor if anyone is looking for one.
        
           | throw0101b wrote:
           | See also _Money: The True Story of a Made-Up Thing_
           | 
           | * https://www.goodreads.com/book/show/50358103-money
           | 
           | And _The Power of Gold: The History of an Obsession_ (2e has
           | an intro from Volcker):
           | 
           | *
           | https://www.goodreads.com/book/show/249245.The_Power_of_Gold
           | 
           | With all the talk of the US dollar losing its status (highly
           | unlikely due to no realistic alternative), _How Global
           | Currencies Work: Past, Present, and Future_ on the history of
           | various previously predominant currencies is also
           | interesting:
           | 
           | * https://press.princeton.edu/books/hardcover/9780691177007/h
           | o...
        
             | rnk wrote:
             | There's no obvious alternative but there's nothing stopping
             | other countries from using other currencies than dollars to
             | do transactions, just the infrastructure that supports it.
             | It feels like the dollar is more stable than other
             | countries currencies, due in large part to our strong
             | economy and strong military. China is big enough that they
             | can probably do transactions in their currency, but any
             | week they can significantly devalue it.
        
               | throw0101b wrote:
               | > _China is big enough that they can probably do
               | transactions in their currency, but any week they can
               | significantly devalue it._
               | 
               | There are roughly as many CAD and AUD transactions as
               | RMB/CNY:
               | 
               | * https://data.imf.org/?sk=e6a5f467-c14b-4aa8-9f6d-5a09ec
               | 4e62a...
               | 
               | * https://www.statista.com/statistics/247328/activity-
               | per-trad...
        
       | malfist wrote:
       | This is fascinating. It's interesting that most of their loans
       | don't seem unlike payday loans i.e. advances to produce a good or
       | service.
        
         | everly wrote:
         | Indeed - I did a double-take at the notion that creditors often
         | wanted a borrower to default so they could then collect payment
         | in the form of the debtors labor, basically debt-slavery.
         | 
         | As you said, fascinating stuff.
        
           | gwern wrote:
           | Where does he say that? He spends the end explaining that
           | clearly most of the lenders had no interest in such a thing,
           | many of the debtors wouldn't be good for labor, and lenders
           | and always tried to take repayment in cash etc.
        
           | alejohausner wrote:
           | Debt slavery was not life-long. Leviticus 25:8 requires that
           | slaves be freed on Jubilee years, which occur every 7 years.
           | That's the origin of modern laws on discharging bankruptcy
           | after 7 years (bankruptcy comes with a penalty, because you
           | can't borrow easily if you default on your debts, so it puts
           | you into a kind of slavery).
           | 
           | Jesus was the redeemer (one who buys off your debts) because
           | he was going to cancel your moral debt of sin: the language
           | of the gospels uses concepts familiar to his audience.
           | 
           | According to Graeber, the jubilee year was introduced by
           | Nehemiah (who had just returned from exile in Babylon, where
           | he learned about it) not out benevolence, but because too
           | many slaves meant the state had too few taxpaying farmers.
        
             | HideousKojima wrote:
             | >According to Graeber, the jubilee year was introduced by
             | Nehemiah (who had just returned from exile in Babylon,
             | where he learned about it) not out benevolence, but because
             | too many slaves meant the state had too few taxpaying
             | farmers.
             | 
             | Given the paucity of surviving texts from that place and
             | era, that sounds like a chain of unsupported assumptions
             | worthy of an evo psych paper.
        
               | alejohausner wrote:
               | He's got several references at the back of his book
               | "Debt", on the topic of the jubilee. But you have a
               | point: there's lots of room for interpretation.
               | 
               | Still, the idea just seemed too delicious to pass up:
               | debt cancellation does not arise from benevolence but
               | from fiscal necessity.
        
           | bboygravity wrote:
           | Debt-slavery which interestingly was banned under Ceasar if
           | I'm not mistaking.
        
             | qwytw wrote:
             | In Rome debt slavery was abolished almost 300 years before
             | Caesar (not sure if it applied only to citizens or to all
             | free people though)
        
             | Telemakhos wrote:
             | Solon, long before Caesar was ever born in Rome, abolished
             | debt-slavery in Athens.
             | 
             | There's a good book on Athenian banking:
             | 
             | Cohen, E. 1992. Athenian Economy and Society: A Banking
             | Perspective. Princeton, NJ: Princeton University Press.
             | 
             | He goes into interesting evidence for bank money (ledger
             | entries not backed by coins, as opposed to metal currency),
             | fractional reserve lending, and inflation in ancient
             | Athens.
        
               | throw0101b wrote:
               | > _There 's a good book on Athenian banking:_
               | 
               | For a wider net, on the general legal framework(s) of
               | that time, see perhaps _Ancient Greek law in the 21st
               | century_ , Perlman, Paula Jean, editor:
               | 
               | * https://utpress.utexas.edu/9781477315217/
               | 
               | It turns out one of the largest banks in Athens was
               | owned/run by some slaves: finance was not a 'respectable'
               | profession--with farming/agriculture being the most
               | 'noble'--so it was left to the lower classes and other
               | riff-raff. Lots of slaves ran businesses, and the
               | question often came up whether any associated debt belong
               | to the business, the slave, or the slave's master
               | (important when slaves were bought and sold).
        
           | dfee wrote:
           | Sounds terrible: get the money then do the work?
           | 
           | These days we work, THEN get the money.
           | 
           | Maybe capital has gotten smarter about when to pay labor -
           | only after the fact.
        
             | runeofdoom wrote:
             | Has capital gotten smarter, or labor gotten dumber? I'm
             | sure all the people The World's Richest Man, Elon Musk, is
             | currently refusing to pay what he owes them would rather
             | have gotten their money in advance.
        
         | random3 wrote:
         | You seem to be describing working capital (business focused)
         | rather than payday loan (consumer focus).
        
           | anovikov wrote:
           | Difference between the two probably only appeared when fixed
           | salaries became a thing.
        
             | chaorace wrote:
             | In their defense: the OP's deployment of the term "payday"
             | is sloppy when discussing a world which predates salaries,
             | bank transfers, and indeed... weeks[1]
             | 
             | [1]: https://en.wikipedia.org/wiki/Ancient_Mesopotamian_uni
             | ts_of_...
        
       | 082349872349872 wrote:
       | Does the shortage of labor discussed imply that some class was
       | complaining "no one wants to work anymore" during the Ur III
       | period at the end of the third millennium BC?
        
         | bbor wrote:
         | No! Maybe, but seeing Sloth as the ultimate sin is definitely a
         | mania that's very heavily based in modern corporate capitalism.
         | Consider some alternate (still very boomer) takes:
         | 
         | "The gods have taken away the good workers!"
         | 
         | "Women are taking the young men's attention away!"
         | 
         | "This is a bad year for work."
        
           | thechao wrote:
           | I was idly wondering, today, if the capitalism was
           | supercharged by the Protestant notion of idle-hands are
           | sinful-hands? The refrain for most of history was that land
           | owners couldn't get any (read: excess) work out of peasant
           | labor: once they had hit their sustenance & rent requirements
           | they just _stopped_. The Protestant ethos would be to be as
           | industrious as possible; and, I think, capitalism capitalized
           | on that zeitgeist.
           | 
           | I dunno... if I still had a Reddit acct, I'd Ask Historians.
        
             | softg wrote:
             | >I was idly wondering, today, if the capitalism was
             | supercharged by the Protestant notion of idle-hands are
             | sinful-hands?
             | 
             | German sociologist Max Weber was wondering the same
             | question about a century ago and wrote a whole book about
             | it called "The Protestant Ethic and the Spirit of
             | Capitalism". The part where he talks about the Protestant
             | notion of calling comes very close to what you described.
             | 
             | I read it a decade ago so the details are a bit fuzzy but I
             | think the gist of it was it's super difficult to get into
             | the heaven in Protestantism (it's actually pre-determined
             | in Calvinism I think) and one needs to devote themselves to
             | some task to avoid sinful earthly distractions. Also
             | charitable works are kinda meaningless because only through
             | faith you can be saved. So you have all these people who
             | work all the time and who do not spend that much on poor
             | people or themselves which helps with capital accumulation.
             | Also with that mindset business becomes an end into itself
             | that should be pursued for its own good so Weber thought
             | this fostered the separation of personal affairs and
             | business iirc.
        
       | Terr_ wrote:
       | > I find his description of the typical money lender especially
       | attractive [...] a professional, often associated with the royal
       | sector, who held a suku allotment and had the resources, in
       | barley, silver, and draft animals, to cultivate his allotment and
       | to pursue the control of additional allotments (Steinkeller 2002:
       | 117). What this individual lacked, according to Steinkeller, was
       | the necessary labor to work the land that he could acquire.
       | 
       | I'm pretty sure I've seen a similar characterization of nobles in
       | England: They possessed land, resource-privileges, and capital
       | equipment, but had to seek out labor.
       | 
       | I suppose it should be no surprise, given the asymmetry between
       | being able to own those things versus _not_ being able to own
       | labor in the form of slaves. (Though serfs can come close.)
       | 
       | It's weird to imagine an opposite reality, a planet where
       | ownership of land/capital/resource-rights is impractical or
       | anathema, but slavery is normal and expected.
        
         | diogenes4 wrote:
         | This is central to the theory that modern financial markets
         | (and certainly capitalism itself) originated in the wake of the
         | labor market reorganization and mass migration symptomatic of
         | the black death. The plauge had a multitude of effects on
         | Europe, but chief among them was the severe contraction of the
         | labor markets and the subsequent restructuring of of local and
         | regional economies.
         | 
         | Of course, events like the reformation and the thirty years war
         | are just as influential, but relate less directly to the
         | political economy.
        
       | nologic01 wrote:
       | Its fascinating that script seems to have been invented to serve
       | as a credit contracts database and to support associated
       | accounting and taxation functions.
       | 
       | The central role of bean counting in pushing information
       | technology repeated in rennaisance with paper ledgers and was key
       | also in early commercialization of computers (IBM).
       | 
       | Somehow the thread has been broken as of recent, with blockchain
       | almost a parody of progress. We mostly still emulate age old
       | patterns. A visitor banker from Ur III would very quickly find
       | their way to the bad loan books.
        
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       (page generated 2023-09-16 23:01 UTC)