A Biblical Solution To The Recession

In the Old Testament government of Israel, God, through Moses, decreed one of the greatest principles for national fiscal health that has ever existed – the year of jubilee. Every 7 years all debts were released and wiped clean.  Can you imagine an economy where every 7 years the entire population becomes debt-free?

First of all,  no one would lend money long-term.  Even short term debt would be rare in such a system.   Cash would be king.   The personal savings rate would be through the roof.

Would such a system work in present day America?  Would we be where we are with the housing and mortgage mess if we had scheduled jubilee years?  We’re tossing around trillions that seem to be doing no useful good.  Why not try it?   Cancel all debts.   Cancel all mortgages.   Cancel the government’s debt (they’re broke too).   I know I would wake up perkier the day after.

And if it works, let’s just make every 7 years a jubilee year.  Then we could print the message that the recession is over on the front of every major news magazine ….. and this time, it would be true.