Wednesday, September 14, 2011

A Review of 'Debt - the first 5000 years' by David Graeber

Graeber provides us with a fascinating exploration of debt and its relationship to money, economic systems, and society itself. He wears his heart on his sleeve, from the start of the book where he tells the reader about his contempt for the IMF, to the end of the book where he puts in a good word for the non-industrious poor.

He also tells us some fascinating tales about how other societies have organised exchange. For me this is where he's at his strongest. The book is worth the price alone just to hear about the Gunwinggu tribe who seem to have sorted out a very appealing alternative to capitalist economic relations. In the same vein, the Lele tribe's 'village wife' adds some more spice to the story, as Graeber goes where economists fear to tread; to the idea that we are ambivalent sexual creatures not just self-interested rational automotons. Slavery, sex, death, war and marriage across human history form the backdrop to his examination of debt. What's not to like?

Well, there are a couple of things that knocked one star from this review. For me Graeber fails to distinguish between money and currency. Although this is a common problem in almost everything I've ever read about money. Towards the close of the book he describes money as 'not "really" anything'. This feels like a bit of a cop out. Would he same the same about love?

A more serious criticism is his failure to even mention the Lord of Libertarianism, Hayek. For Hayek, money was a institution born of price that was determined through the magic of markets. Graeber has interesting stuff to say about free markets and the state; he tackles Adam Smith, and finds sympathy with Keynes. But Hayek remains the elephant in the room.

Anthropology has so much to teach us about money, debt, and exchange. It should be a requirement that anyone who refers to themselves as a banker or economist should study it. Graeber's book would be a good place to start.


This review is posted on Amazon here. If you found this review helpful please visit the Amazon site and vote for it.

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