Opinion

Edward Hadas

A Christmas message for lenders

Edward Hadas
Dec 18, 2013 15:30 UTC

For many shoppers, Christmas is a time to rack up debts in the expression of seasonal goodwill. For policymakers, it should be the holiday of debt forgiveness.

The inspiration for that religious-sounding thought comes from the atheist philosopher Hannah Arendt. She argued that forgiveness has a central role in human affairs, and the secular world should be grateful to Christianity for the discovery. Arendt was of course talking about forgiveness in the common understanding of the term – a pardon for a wrong, the cancellation of “you owe me one”. But her understanding of this as enabling people to “begin something new” works just as well when thinking about the financial equivalent: a willing erasure of material obligations.

Consider a loan from parents to a son or daughter who wants to start a business. If the new venture fails, a tough demand for repayment is likely to spawn resentment. Debt forgiveness will breed gratitude and closer ties.

The gains of forgiveness are less psychological when the debts in question are loans from mega-banks to anonymous companies or overly ambitious homeowners, or bonds issued by cash-short governments. Still, when borrowers would be impoverished by making every effort to repay, forgiveness is ultimately the better way. Lenders should take some responsibility for their own poor judgement. Besides, strict exactions create socially divisive goodwill, while the dissolution of excessively onerous obligations gives companies and families a chance to engage in socially beneficial activities, and sets governments free to serve the governed better.

Consider also what debt forgiveness avoids. Some loans are taken out in desperation and can probably never be repaid. Others go irredeemably bad because of an unpredictable problem – a flood, war or economic downturn. If all these un-payable debts are held sacrosanct, then the number of overburdened borrowers and the sum of unpaid debts will inevitably increase.

The spirit of Christmas presents

Edward Hadas
Dec 20, 2011 19:39 UTC

By Edward Hadas

The opinions expressed are his own.

Ah, the curse of materialism. The true spirit of Christmas has been obliterated by a landslide of gifts. The crass commercialism which surrounds the experience of holiday shopping, not to mention the returns and post-Christmas sales, has turned this joyous holiday into little more than an exaltation of the worst aspects of our modern consumerist economy.

Or so it is often said. But is the complaint fair? It’s certainly true that the exchange of gifts on a large scale is a relatively new feature of Christmas festivities. In the 1840s, Charles Dickens has the Spirit of Christmas Present take the miser Ebenezer Scrooge to witness joyous celebrations of the feast. Food, drink and good cheer are in abundant supply, but there are no presents.

In the 1880s, hand-made gifts were making the day special for many American children. By the 1920s, a more commercial spirit had triumphed in the land of mass production and the factory-made Christmas was already causing complaints about inappropriate gifts. According to historian William Waits, some businessmen felt a little queasy about advertisements for such supposedly ideal Christmas gifts as a can of paint, a cooperative apartment, potatoes and floor wax.

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