Who is the author of Debt?

David Graeber is the author of Debt.

Economics

Debt Book Summary - Debt Book explained in key points

Debt summary

Name: Debt
Rating: 4.4 (59 reviews)
Author: David Graeber

David Graeber

The First 5,000 Years

4.4 (59 ratings)

16 mins

Brief summary

Debt by David Graeber explores the origins and impact of debt, revealing how credit systems have evolved and how they perpetuate inequality. It challenges the view that debt is a moral failing and suggests alternative ways of thinking about money.

Topics

Culture Wealth

Table of Contents

Debt
Summary of 9 key ideas

Audio & text in the Blinkist app

Key idea 1 of 9

What’s in it for me? Learn about the origins of money and how its use has changed through history.

The actual text of the famous Rosetta Stone is often overlooked, given the stone’s importance in helping archeologists crack Egyptian hieroglyphics. Yet this ancient rock is in fact a legal document, pronouncing amnesty for debtors and prisoners.

The concept of debt goes not only as far back as ancient Egypt, but even further, to the first agrarian societies. Our ancestors didn’t live in simplistic bartering societies, as so many school books might have you believe; debt as a concept has been around as long as humans have had needs and goods.

Author David Graeber dials back the clock and takes a look at the origins of money, and how its use and utility has changed through history. Through peace and war, village life and city life, how we count coins and how we deal with debt has evolved tremendously.

These informative blinks, chock-full of fascinating facts and anecdotes, are a must-read for anyone curious about how we as a society have “done business” throughout the ages.

After reading these blinks, you’ll know

how the concept of credit actually precedes printed coins or money;
why during wartime, soldiers paid in cash and family friends on credit; and
how religion played a part in keeping people out of debt.

Systems of debt and credit have existed since the beginning of recorded human history.

Economic history textbooks tell us that the earliest human exchanges were based on a bartering system. Money was invented only to facilitate bartering; later, the idea of credit was introduced.

However, there’s no actual evidence that bartering preceded money. In most modern, pre-industrial societies, bartering is only done among strangers.

The Pukhtun of northern Pakistan, for example, are famous for their hospitality, but use a form of barter called adal-badal for those to whom they have no social obligations.

This is somewhat intuitive. When a family member or close friend asks you for something, do you start scheming about how you can benefit from the transaction? Certainly not; but classical economics would have it otherwise.

Economic theory actually has it backwards. Anthropology teaches us that people were using virtual money – credit – far before the inventions of coinage or bartering.

Virtual money was already in use in ancient Mesopotamia, around 3500 BCE. The silver shekel functioned as the single, universal system of accounting, but most of the silver that underpinned this early monetary system was closely guarded in temple and palace treasuries.

Society also maintained an exchange rate between shekels and barley, the staple crop. Debts and taxes were usually charged in shekels, but paid in barley.

Despite anthropological evidence, the barter myth persists as it is central to the discipline of economics. It goes hand in hand with the assumption that all individuals are interested in maximizing profit, and that an individual is able to assign an abstract value to anything.

In reality, this tendency to see the world in terms of exchange value is not natural, but a product of a specific historical process.

Market economies rely on violence and the decontextualization of goods and people to function.

Another common misconception about money has to do with its use. Money is actually more important socially than it is economically.

Unlike the market economies we see in industrialized societies today, many pre-industrial societies functioned as human economies.

Nickels, dimes and markets didn’t just happen; they’re tied directly to the interests of the state.

As you might’ve guessed, there’s more than just one way that violence and money are linked.

The theory of chartalism argues that the emergence of the state is responsible for the development of money. It outlines another major reason in which violence has inspired the growth of our modern economic system: war.

A society wracked by war prefers its payments in cash; while credit relationships crave peace.

Another interesting connection between money and war is one in which the prevalence of gold or silver as currency – that is, bullion – is determined by just how chaotic a society is.

Coinage developed independently yet almost simultaneously in three different places around 600 BCE to 500 BCE: on the Great Plain of northern China, in the Ganges river valley in India and in the lands surrounding the Aegean Sea.

In the First Agrarian Empires (3500-800 BCE), most business was done using virtual money.

Now that we’ve examined the origin of money as a concept, let’s see how the relationship between coinage and virtual money (including debt) played out through history.

In ancient Mesopotamia as well as in India and in China, money was an abstract concept and the state bureaucracy controlled its value.

The Axial Age (800 BCE-600 CE) saw the rise of coinage, which led to markets and modern religion.

The Axial Age, coined as such by philosopher Karl Jaspers, was indeed an axial, or pivotal, time in history.

The great thinkers Pythagoras, Buddha and Confucius all lived in this era; yet it too was filled with violence, with war among states in China and the fall of the Roman empire.

In the Middle Ages (600 -1500 CE), virtual money made a comeback as markets and societies changed.

In the Middle Ages, the tenets of religion and the practices of the market merged.

In the Middle East in particular, Islamic empires consolidated their lands and led a return to virtual money, in the form of debt or credit.

The Age of European Empires (1500-1971 CE) saw cash as king again, and the birth of capitalism.

You might assume that a return to bullion was inspired by the discovery of the New World and the gold found there that was brought back to Europe.

The process actually was a bit more complex, and considerably more global.

The Current Era (1971-today) has seen a return to virtual money, but with fewer controls.

Our current monetary era can be said to have started when U.S. President Richard Nixon announced that the U.S. dollar would no longer be convertible to gold at a fixed rate.

The end of the “gold standard” ushered in a new era of virtual money. Money – seemingly no more than numbers on a screen – could be traded, invested, gained and lost.

Want to see all full key ideas from Debt?

Key ideas in Debt

More knowledge in less time

Read or listen

Get the key ideas from nonfiction bestsellers in minutes, not hours.

Find your next read

Get book lists curated by experts and personalized recommendations.

Shortcasts ^New

We’ve teamed up with podcast creators to bring you key insights from podcasts.

What is Debt about?

Many of us assume that money – or capitalism in general – is a fundamental part of human society. In Debt (2011), author David Graeber presents an anthropological examination of money that challenges common assumptions, asserting that money and the concept of debt are actually products of specific historical circumstances.

Debt Review

Debt (2011) by David Graeber is a thought-provoking exploration of the history and implications of debt in our societies. Here's why this book is definitely worth a read:

It presents a fresh perspective on the concept of debt, challenging conventional assumptions and shedding light on the social and political dimensions.
Graeber's meticulous research and analysis make this book a treasure trove of fascinating insights, connecting historical events and economic systems in an engaging way.
With its accessible and conversational style, the book manages to transform what could be a dry subject into a captivating exploration of human interactions and societal structures.

Best quote from Debt

If we have become a debt society, it is because the legacy of war, conquest and slavery has never completely gone away.

—David Graeber

Who should read Debt?

Anyone interested in anthropology or history
Anyone interested in economics
Anyone interested in money as a social concept

About the Author

David Graeber was an anthropologist and anarchist activist. A prominent organizer in the social movement Occupy Wall Street, Graeber’s work and writings on anthropology, anarchism, and social justice earned him many accolades.

Categories with Debt

Economics

Book summaries like Debt

Adaptive Markets

Andrew W. Lo

Financial Evolution at the Speed of Thought

20 min

4.1

The Upside of Your Dark Side

Todd Kashdan and Robert Biswas-Diener

Why Being Your Whole Self – Not Just Your “Good” Self – Drives Success and Fulfillment

An Essential Guide to Life

21 min

4.2

Millennial Money Makeover

Conor Richardson

Escape Debt, Save for Your Future, and Live the Rich Life Now

Why English Won’t – and Can’t – Sit Still (Like, Literally)

The Architecture of Belief

The Comprehensive Guide to Delay, Don't Deny® Intermittent Fasting

17 min

4.5

Buddhism – Plain and Simple

Steve Hagen

The Practice of Being Aware, Right Now, Every Day

The Rise and Fall of Long-Term Capital Management

19 min

4.2

Workstyle

Lizzie Penny and Alex Hirst

A revolution for wellbeing, productivity and society

Testing Business Ideas

David J. Bland and Alexander Osterwalder

A Field Guide for Rapid Experimentation

The Keys to Success and Long-Term Fulfillment

17 min

4.5

Walmart

Natalie Berg and Bryan Roberts

Key Insights and Practical Lessons from the World's Largest Retailer

17 min

4.5

The Self-Made Billionaire Effect

John Sviokla and Mitch Cohen

How Extreme Producers Create Massive Value

14 min

4.1

Creativity, Inc.

Ed Catmull with Amy Wallace

Overcoming the Unseen Forces That Stand in the Way of True Inspiration

19 min

4.3

Mastering Leadership

Robert J. Anderson and William A. Adams

An Integrated Framework for Breakthrough Performance and Extraordinary Business Results

Obsession, Fury and the Scandal Behind the World's Favorite Board Game

The Remarkable Truth of How a Small Change Can Help You Stress Less and Enjoy Life More

Marketing That Can't Be Ignored!

Austrian Investing in a Distorted World

18 min

4.3

Bedtime Biography: Vindication

Lyndall Gordon

A Life of Mary Wollstonecraft

30 min

4.7

How to Fail at Almost Everything and Still Win Big

Scott Adams

Kind of the Story of My Life

How to Bridge the Distance Between Business Strategy and Design

15 min

4.4

Only the Paranoid Survive

Andrew S. Grove

Transform apocalypse into opportunity

The “How To” book that gives YOU a “Check Up” from the “Neck Up” to eliminate “Stinkin Thinkin” and AVOID “Hardening of the Attitudes”

A History from Socrates to Social Media

Vengeance and Justice in Mycenae

Grit, Curiosity, and the Hidden Power of Character

How to free yourself from philosophical dogmas and assert your own values

25 min

4.7

The First Rule of Mastery

Michael Gervais

Stop Worrying about What People Think of You

The Life of Gordon Moore, Silicon Valley’s Quiet Revolutionary

The Creative’s Guide to Building a Business with Impact

The 15 Most Powerful Principles for Wealth, Health, and Happiness

How to Control Your Attention and Choose Your Life

23 min

4.4

The 15 Commitments of Conscious Leadership

Jim Dethmer

A New Paradigm for Sustainable Success

The Story of Ideas That Fly

How the Psychology of Sports Can Enhance your Performance in Management and Work

19 min

4.1

Yoga Nidra Made Easy

Uma Dinsmore-Tuli & Nirlipta Tuli

Deep Relaxation Practices to Improve Sleep, Relieve Stress and Boost Energy and Creativity

A Very Short Introduction

25 min

4.2

Why Zebras Don't Get Ulcers

Robert M. Sapolsky

The Acclaimed Guide to Stress, Stress-Related Diseases, and Coping

25 min

4.4

Understanding and Responding to Self-Harm

Allan House

The One-Stop Guide: Practical Advice for Anybody Affected by Self-Harm

18 min

4.2

Brave Together

Chris Deaver & Ian Clawson

Lead by Design, Spark Creativity, and Shape the Future with the Power of Co-Creation

20 min

3.9

Go Beyond Talk: Connect Powerfully

The Blinkist Team

How learning to listen and be assertive can help your communication

17 min

4.6

The Science of Intelligent Achievement

Isaiah Hankel

How Smart People Focus, Create and Grow Their Way to Success

23 min

4.4

Start, Stay, or Leave

Trey Gowdy

The Art of Decision Making

How Millennials Became the Burnout Generation

19 min

4.3

How I Invest My Money

Edited by Joshua Brown and Brian Portnoy

Finance Experts Reveal How They Save, Spend, and Invest

20 min

4.0

What I Learned Losing a Million Dollars

Jim Paul

The story of a man who lost it all

17 min

4.3

People ❤️ Blinkist

Sven O.

It's highly addictive to get core insights on personally relevant topics without repetition or triviality. Added to that the apps ability to suggest kindred interests opens up a foundation of knowledge.

Thi Viet Quynh N.

Great app. Good selection of book summaries you can read or listen to while commuting. Instead of scrolling through your social media news feed, this is a much better way to spend your spare time in my opinion.

Jonathan A.

Life changing. The concept of being able to grasp a book's main point in such a short time truly opens multiple opportunities to grow every area of your life at a faster rate.

Renee D.

Great app. Addicting. Perfect for wait times, morning coffee, evening before bed. Extremely well written, thorough, easy to use.