Last week there were signs that credit has begun to loosen, and there was a collective sigh of hope that lenders will begin to trust in the financial system again.
But we're deluding ourselves if we assume that we can recover from the crisis of 2008 so quickly and easily simply by watching the Dow creep upward. The wounds go deeper than that. To heal them, we must repair the broken moral balance that let this chaos loose.
Debt -- who owes what to whom, or to what, and how that debt gets paid -- is a subject much larger than money. It has to do with our basic sense of fairness, a sense that is embedded in all of our exchanges with our fellow human beings.
But, at some point, we stopped seeing debt as a simple personal relationship. The human factor became diminished. Maybe it had something to do with the sheer volume of transactions that computers have enabled. But what we seem to have forgotten is that the debtor is only one twin in a joined-at-the-hip pair, the other twin being the creditor. The whole edifice rests on a few fundamental principles that are inherent in us.
We are social creatures who must interact for mutual benefit, and -- the negative version -- who harbor grudges when we feel we've been treated unfairly. Without a sense of fairness and also a level of trust, without a system of reciprocal altruism and tit-for-tat -- one good turn deserves another, and so does one bad turn -- no one would ever lend anything, as there would be no expectation of being paid back. And people would lie, cheat and steal with abandon, as there would be no punishments for such behavior.
Children begin saying, "That's not fair!" long before they start figuring out money; they exchange favors, toys and punches early in life, setting their own exchange rates. Almost every human interaction involves debts incurred -- debts that are either paid, in which case balance is restored, or else not, in which case people feel angry. A simple example: You're in your car, and you let someone else go ahead of you, and the driver doesn't nod, wave or honk. How do you feel?
Once you start looking at life through these spectacles, debtor-creditor relationships play out in fascinating ways. In many religions, for instance. The version of the Lord's Prayer I memorized as a child included the line, "Forgive us our debts as we forgive our debtors." In Aramaic, the language that Jesus himself spoke, the word for "debt" and the word for "sin" are the same. And although many people assume that "debts" in these contexts refer to spiritual debts or trespasses, debts are also considered sins. If you don't pay back what's owed, you cause harm to others.
The fairness essential to debt and redemption is reflected in the afterlives of many religions, in which crimes unpunished in this world get their comeuppance in the next. For instance, hell, in Dante's "Divine Comedy," is the place where absolutely everything is remembered by those in torment, whereas in heaven you forget your personal self and who still owes you five bucks and instead turn to the contemplation of selfless Being.
