From the video: “In the Old Testament, it is stipulated in Deuteronomy that at the end of each seven years, there is to be a cancellation of debts and a release of any debt slaves held in bondage. In Leviticus, it is stipulated that the end of each 50 years, there is to be a Jubilee in which confiscated property is returned to its ancestral owners.”
1) Is this a bad policy?
2) If there is an expectation that there is a chance the money you lend out may be cancelled or rendered null and void, would that not make you more circumspect as to who they will lend to?
3) If certain debts backed by the public treasury (like modern student loans in America) are not dischargeable in bankruptcy, what reason do creditors have not to lend to applicants who are otherwise not creditworthy?
The reason student loans are not allowed to be discharged in a bankruptcy is because a cottage industry sprang up on college campuses all over.
Particularly for Law degrees, there were even courses offered that explained and walked students through the process on how to get your Law degree on borrowed money, and then declare bankruptcy.
It didn’t happen simply because Congress was a bunch of meanies. There was a method behind the madness.