Mired in Debt: 21st Century Serfdom
Sharon L. Secor
October 17, 2007
Bound by debt and obligation, the serf of old eked out his living, toiling long and hard for the basic necessities of life, having little to show for his work beyond making it through another day, another week, another month. In the medieval era, his debt and obligation were inherited by the next generation, who would also toil in serfdom. Today, too, in the 21st century, many are mired in debt – mortgages, credit card debt, consumer debt, etc. However, it is not only their own debt that they have to contend with. The lords of our manor, the president and congress, have run up and foisted upon us a debt so vast that it will be inherited not only by our children, but also our children’s children. Welcome to 21st century serfdom.
Staggering Under the Burden of Personal Debt
The burden of debt that all too many are staggering beneath today is a multi-faceted problem that goes far beyond simple debt management. The financial decisions that have helped to create the degree of personal debt that many struggle with today have been influenced by the shift in the economy as a whole, as well as by the societal and cultural changes that accompanied that shift.
The foundation upon which personal finance decisions are made has changed for many people. With the rise of a consumerism based economy, came significant changes in the perception of what is essential, as well as a marked movement away from traditional ideas concerning what is worth going into debt over.
Mass production required mass consumption, and at the turn of the twentieth century most Americans considered it both unnatural and unwise to buy things they didn't actually need,” wrote John Taylor Gatto. By the turn of the twenty-first century, with the help of skilled mass-marketing and substandard public education infused with social engineering seemingly designed to create “not only a harmless electorate and a servile labor force but also a virtual herd of mindless consumers,” concepts of productive debt and consumptive debt faded away, along with the line that separates needs from wants, to be replaced with an “I’m worth it”, instant gratification, buy now-pay later sort of hyper-consumerism.
Even such fundamental purchases as the family home have been affected by this shift in perception. The size of new homes built since the 1900’s has increased, expanding right along with people’s perceptions of what they need, while family size has decreased. While, of course people are free to do as they please with their own money, in the past it would have been viewed as financially wiser to take a mortgage for a home that meets the needs, while saving to purchase the home that meets the wants. The wisdom of that is made clear with the skyrocketing of monthly mortgage payments due to adjustable interest rates, as well as by the current mortgage and lending meltdown and the foreclosure crisis.
The results of such changes have not been good for many. Personal savings rates are low, and have been for quite some time now, dipping into negative numbers for periods of time that haven’t been seen since the Great Depression. A negative savings rate indicates that people are spending more than they earn in income.
With the struggle to pay day-to-day living expenses, the mortgage, and debt, many work long hours and have nothing to show for it beyond making through another pay period. Many work daily at jobs they hate, but cannot leave, because they cannot afford a cut in pay or benefits. Still others are trapped in a region that has a depressed job market, but cannot strike out for greener pastures, as they have a house that can’t be sold for what they still owe on it, and can’t afford to take the loss. Many people today are living lives that don’t differ that much from the conditions that defined the lives of serfs.
The Citizen’s “Share” Of The National Debt
In addition to personal debt, there is the national debt. The national debt, which currently stands at more than $9 trillion and continues to rise, is the amount of money that is owed by the General Fund. The General Fund comes from the income tax. Right now, each citizen’s share of the national debt is just under $30,000, a sum more than many make in a year and more than many make in two years.
The government makes the debt, often with little regard for what the citizenry think about what the money is being spent on, and takes the money to pay that debt from the citizen. It’s a fine thing to be lord of the manor or a vassal. The president and congress have the best of everything. Like state and local representatives, they have quality health care, while the citizens struggle to find the money for health insurance that often restricts the types and amounts of health care that they can access or do without health insurance and, all too often, heath care. They have great retirement plans, funded by citizens who will be counting pennies and choosing between medicine and food during their senior years.
Like the serfs centuries ago, our future generations will come into this world with debt imposed upon them, and will be obliged to pay a significant portion of the monies they eventually derive from their labor to the lord of the manor and his numerous vassals. Our children will be born owing money, as responsibility for the 9 trillion dollar debt – growing with no end in sight – is shifted to them.
While there’s not much the average person can do about the national debt, it is possible to rise above serf-like conditions by reverting to the sort of fiscal perspective that will help achieve freedom from debt. Recognize the difference between wants and needs, between consumptive debt and productive debt, and be disciplined about paying down old debt and setting aside a portion of income for savings. Making smart money choices can fund freedom, allowing the individual to do more than just barely make it from paycheck to paycheck.
Staggering Under the Burden of Personal Debt
The burden of debt that all too many are staggering beneath today is a multi-faceted problem that goes far beyond simple debt management. The financial decisions that have helped to create the degree of personal debt that many struggle with today have been influenced by the shift in the economy as a whole, as well as by the societal and cultural changes that accompanied that shift.
The foundation upon which personal finance decisions are made has changed for many people. With the rise of a consumerism based economy, came significant changes in the perception of what is essential, as well as a marked movement away from traditional ideas concerning what is worth going into debt over.
Mass production required mass consumption, and at the turn of the twentieth century most Americans considered it both unnatural and unwise to buy things they didn't actually need,” wrote John Taylor Gatto. By the turn of the twenty-first century, with the help of skilled mass-marketing and substandard public education infused with social engineering seemingly designed to create “not only a harmless electorate and a servile labor force but also a virtual herd of mindless consumers,” concepts of productive debt and consumptive debt faded away, along with the line that separates needs from wants, to be replaced with an “I’m worth it”, instant gratification, buy now-pay later sort of hyper-consumerism.
Even such fundamental purchases as the family home have been affected by this shift in perception. The size of new homes built since the 1900’s has increased, expanding right along with people’s perceptions of what they need, while family size has decreased. While, of course people are free to do as they please with their own money, in the past it would have been viewed as financially wiser to take a mortgage for a home that meets the needs, while saving to purchase the home that meets the wants. The wisdom of that is made clear with the skyrocketing of monthly mortgage payments due to adjustable interest rates, as well as by the current mortgage and lending meltdown and the foreclosure crisis.
The results of such changes have not been good for many. Personal savings rates are low, and have been for quite some time now, dipping into negative numbers for periods of time that haven’t been seen since the Great Depression. A negative savings rate indicates that people are spending more than they earn in income.
With the struggle to pay day-to-day living expenses, the mortgage, and debt, many work long hours and have nothing to show for it beyond making through another pay period. Many work daily at jobs they hate, but cannot leave, because they cannot afford a cut in pay or benefits. Still others are trapped in a region that has a depressed job market, but cannot strike out for greener pastures, as they have a house that can’t be sold for what they still owe on it, and can’t afford to take the loss. Many people today are living lives that don’t differ that much from the conditions that defined the lives of serfs.
The Citizen’s “Share” Of The National Debt
In addition to personal debt, there is the national debt. The national debt, which currently stands at more than $9 trillion and continues to rise, is the amount of money that is owed by the General Fund. The General Fund comes from the income tax. Right now, each citizen’s share of the national debt is just under $30,000, a sum more than many make in a year and more than many make in two years.
The government makes the debt, often with little regard for what the citizenry think about what the money is being spent on, and takes the money to pay that debt from the citizen. It’s a fine thing to be lord of the manor or a vassal. The president and congress have the best of everything. Like state and local representatives, they have quality health care, while the citizens struggle to find the money for health insurance that often restricts the types and amounts of health care that they can access or do without health insurance and, all too often, heath care. They have great retirement plans, funded by citizens who will be counting pennies and choosing between medicine and food during their senior years.
Like the serfs centuries ago, our future generations will come into this world with debt imposed upon them, and will be obliged to pay a significant portion of the monies they eventually derive from their labor to the lord of the manor and his numerous vassals. Our children will be born owing money, as responsibility for the 9 trillion dollar debt – growing with no end in sight – is shifted to them.
While there’s not much the average person can do about the national debt, it is possible to rise above serf-like conditions by reverting to the sort of fiscal perspective that will help achieve freedom from debt. Recognize the difference between wants and needs, between consumptive debt and productive debt, and be disciplined about paying down old debt and setting aside a portion of income for savings. Making smart money choices can fund freedom, allowing the individual to do more than just barely make it from paycheck to paycheck.
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