Explore David Hume's essay on public debt and credit and its relevance to American politics. Delve into Hume's controversial ideas on suicide, mockery, and the morality of ending one's life. Discover Hume's perspectives on the dangers and unsustainability of borrowing, the impact of a national debt-driven economy, and the relationship between debt, democracy, and political responsibility. Uncover the complexities surrounding suicide, obligations, and the role of public debt in sustaining lives.
David Hume's essays challenge religious and philosophical doctrines, urging critical thinking and questioning of sacred beliefs.
Borrowing as a means of financing a state raises concerns about speculative finance, concentration of power, and reduced flexibility in times of crisis.
Hume's arguments on public debt caution against unsustainable burdens but must be adapted to address the complexities of modern economies and responsible governance.
Deep dives
The Radical Ideas of David Hume
In this podcast episode, the radical nature of philosopher David Hume's ideas is explored. Despite Hume being a conservative figure in politics, his philosophy is considered radical, challenging conventional beliefs. Hume's essays, although sometimes controversial, contain electrifying ideas that question religious and philosophical doctrines. He challenges the notion of a godly universe and encourages critical thinking, urging readers to question their most sacred beliefs. While Hume may not have been the best advocate for his craft, his essays bridge the gap between academic learning and everyday conversation, providing a fresh perspective on common notions and exposing the strangeness of our actions and beliefs. Though Hume's essay on essay writing misses the mark, his celebration of the essay form aligns with the Scottish Enlightenment's embrace of new ideas communicated through magazines and newspapers. Hume highlights the importance of communication in bridging the gap between the world of learning and the world of conversation. His views on public debt are also explored, as he raises concerns about governments borrowing excessively and the potential consequences of unsustainable debt. Hume's arguments resonate with contemporary debates on public debt and its impact on finance, nationhood, and democracy. While Hume's warnings about debt must be considered, the complexities of modern national economies and responsible democratic governance offer alternative paths to navigate the challenges of debt.
The Three Practical Options for Financing a State
In this podcast episode, three primary options for financing a state are discussed: conquest, taxation, and borrowing. Conquest involves taking resources from other territories through invasion, but it comes with risks and resistance. Taxation requires citizens to contribute financially to the state's needs, but it can face opposition and avoidance. The episode focuses on the third option, borrowing, which allows states to defer immediate financial burdens and utilize borrowed funds for present needs. While borrowing offers flexibility and ease, it also raises concerns about the long-term sustainability of a debt-driven economy. The dangers include speculative finance, concentration of power and wealth, vulnerability to foreign lenders, detachment of financiers from national interests, and reduced flexibility in times of crisis. However, the episode also acknowledges that debt-driven economies can drive innovation and industrial growth. The argument highlights the need for responsible management of debt, balancing the benefits with the potential risks to ensure the state's long-term stability and ability to respond to future challenges. The discussion touches on the contemporary relevance of these arguments, particularly in relation to public debt and fiscal policies debated in the United States today.
Debt and National Suicide: Lessons from History
The episode delves into the concept of debt as potential national suicide, drawing insights from philosopher David Hume's views on public credit. Hume's argument revolves around the risks and consequences of unsustainable debt burdens for the stability and security of a state. While Hume warns of the dangers of debt-driven economies, the episode emphasizes that his predictions did not align with historical outcomes. It highlights how states like Britain and the United States have effectively managed their debts over time, demonstrating resilience and adaptability in the face of financial obligations. The episode also addresses the relevance of Hume's arguments in contemporary discussions on public debt and fiscal responsibility. It underscores the complexities involved in navigating debt burdens, emphasizing the need for pragmatic and responsible approaches, including open discussions and policy decisions that prioritize the nation's long-term stability and ability to meet future challenges.
Debt, Democracy, and Responsibilities
This podcast episode explores the connection between debt, democracy, and societal obligations. While some argue that increasing debt levels will lead to ruin, the episode challenges this belief by examining historical examples, primarily the British and American experiences. It emphasizes that the sustainability of debt depends on how it is managed and the role of democratic governance in ensuring responsible decision-making. The episode highlights the indispensable nature of government debt in supporting crucial programs and obligations that benefit citizens' well-being. It notes that responsible discussion of debt is necessary to find the most sustainable path forward, acknowledging the interdependence and interconnectedness of modern society. The episode also provides insight into philosopher David Hume's arguments on public credit, illustrating how his proposals must be understood in their historical context and adapted to address the complex challenges of the present day.
The Path of Responsibility: Discussing Debt Without Suicidal Conclusions
In this podcast episode, the idea of debt as national suicide is explored in relation to philosopher David Hume's analysis of public credit. The episode emphasizes the importance of discussing debt without jumping to extreme conclusions. Hume's arguments highlight three potential outcomes for debt: violent death through conquest, natural death through unsustainable burden, and voluntary euthanasia through managed default. However, the episode cautions against interpreting Hume's writings as definitive guidelines on national debt management, referencing historical examples where states have effectively navigated indebtedness. It also acknowledges the complexity of factors involved, such as conquest, taxation, inflation, and the role of democracy in shaping responsible financial governance. The episode concludes by emphasizing the need for better politics and pragmatic approaches to debt, ensuring the stability and interconnectedness of modern societies.
Episode two in our series on the great essays is about David Hume. How can eighteenth-century arguments about the national debt help make sense of American politics today? When does public borrowing become a recipe for national disaster? Who is really in charge of the public finances: the government or the bankers, Washington, D.C. or Wall Street? And what has all this got to do with Hume’s arguments for the morality of suicide?
Read Hume’s original essay ‘Of Public Credit’ here.
For more on Hume from the archive of the LRB:
Jonathan Rée on Hume’s voracious appetites: ‘“The Corpulence of his whole person was better fitted to communicate the Idea of the Turtle-Eating Alderman than of a refined Philosopher,” as a friend put it.’
Fara Dabhoiwala on Hume and mockery: ‘David Hume often resorted to ridicule to undermine hypocrisy or superstition, even if he doubted its capacity to settle controversial questions, arguing that mockery was as likely to distort as to reveal the truth.’
John Dunn on Hume and us: ‘Hume is in some ways so very modern . . . But just because he is in some ways so close to us, it is easy to lose the sense that in many others his beliefs and experiences stand at some little distance from our own.’
