Could/should Jubilee debt cancellations be reintroduced today? If not, what alternative measures of debt relief and redistribution might be possible?

Abstract

In this paper the authors recall the history of Jubilee debt cancellations, emphasizing what their social purpose was at that time. They note that it would not be possible to copy that procedure exactly nowadays, primarily because most debt/credit relationships are intermediated via financial institutions, such as banks, insurance companies, etc., rather than by governments or wealthy families directly. But they argue that the underlying social purpose of such Jubilees -to keep debt within the reasonable ability to be paid without social and economic polarisation -could be recreated via alternative mechanisms, and they discuss the politico-economic arguments for, and against, doing so. (Published as Global Solutions Paper)JEL E60 E61 E62 E65 H10 H23 H80 N30 N35 P43 Q15 R52

A Review of the Sustainability Crisis and an Appraisal of Sustainable Prosperity

“…The gift economy, for example, is based on the exchange of goods and services through gifting rather than through buying and selling (Thygesen 2019). The current amount of debt in the world is so staggering that many economists argue that a debt jubilee is the only viable solution to prevent economic collapse (Hudson 2018). Cancellation of debt and its associated obligations would allow for a fresh start and provide an opportunity to rebuild the economy on more sustainable foundations.…”