by: Tony Curzon Price on May 27th, 2015 | Comments Off
Debt and guilt have much in common. It’s time we found better ways of organising both ourselves and the economy.
Feeling guilty and being over-indebted have much in common. You’ve done something wrong and now you’re paying for it. The feeling of guilt is a flow of pain due to you from past recklessness, maybe from your original sin. The flow might abate if only you could redeem yourself. You’re all set up to beg forgiveness. A payment is due, and if only you’d do your duty, you’d pay your dues, the pain might just abate. The language of guilt and debt seem inseparable: redeem, forgive, bondage, dues…
George Gilder, onetime business guru, evangelical Christian and speechwriter to Richard Nixon, was a prophet of the virtues of massive debt for companies. His logic would have appealed to the protestant theologian and autocrat John Calvin. When you pile a company high with debt — up to the maximum that its financial projections will allow — the chief executive will have just one purpose to his day: to fulfill his promises; to meet the monthly installment. And if he doesn’t (it usually is a ‘he’), he’ll have to confront a stern and wrathful investor. That investor is, in Goldamn Sachs CEO Lloyd Blankfein’s entirely non-ironic formulation, “Just doing God’s work.” To make the payment or else … that’s exactly the motivational structure of the guilty mind: there’ll be hell to pay if I don’t perform.