It’s not just that people don’t understand debt, it’s that the vast majority of people live in precarious situations which make debt a temptation. A little debt to grease transactions and buy assets is good, a lot of debt is a burning crises.
It’s not just that people don’t understand debt, it’s that the vast majority of people live in precarious situations which make debt a temptation. A little debt to grease transactions and buy assets is good, a lot of debt is a burning crises.
If all loans were required to be non-recourse they’d suddenly have to be reasonable; anyone suffering too much under them would walk away leaving the collateral.
This isn’t even a death-knell for credit cards; it’d just turn them all to secured ones. But it would be deadly to allowing people to overspend and overextend.
There are places where they didn't own anything. Decades ago I read that at some point each feudal lord coined his own currency for his peasants. If a peasant escaped, he wouldn't have means to take anything with him.
Same in Russia. A couple centuries ago, serfs came with the land. They could be liberated if the owner decided it. However, being a free man is quite difficult without a job.
Serfdom ended in 1861.
A modern echo of this: Several times in the gloomy AM hours, I have worried what might happen if the current US administration tries to impose capital controls [0] like China. You might flee to Canada, only to find out that most/all of your life savings are forfeit to the tender mercies of the US government.
[0] https://www.reuters.com/markets/us/investors-could-exit-tari...
One of the defining traits of medieval Europe was that peasants were forced into serfdom and were granted the privilege to work the land.
More primitive societies banned usury because the concept of interest was seen as unfair. This held them back from investing or speculating on the future and kept them very poor.
However, OP didn't talk about owning land but rather about "permanent land rights", which usually means the right to use land. That is, it would still be owned by the feudal, who might be able to sell it to another feudal, but the peasants that lived on it and farmed it were necessarily part of the deal and couldn't be just removed from the land at a whim. That was not an uncommon arrangement even in places that had serfdom.
Is it that they COULDN'T be, or is it that there was no reason to relocate them?
Serfdom might not have been universal, but it was extremely common and the predominant system in large parts of medieval Europe.
In Eastern Europe - and especially in Russia - serfdom began as a similar arrangement, but eventually evolved into full-fledged slavery where people could be bought and sold in and of themselves at a whim, while the original label remained for propriety reasons - basically people wanted to own slaves but didn't want to be called "slaveholders". So, a bit like "democratic people's republics" of whatever today. However, even if you take the label at face value, that arrangement still does not describe most places with serfdom.