Debt: The First 5,000 Years

by David Graeber

The following story, which purports to tell the reaction of a merchant’s son named Lü Buwei on learning that an exiled prince was living nearby, illustrates the progression nicely: On returning home, he said to his father, “What is the profit on investment that one can expect from plowing fields?” “Ten times the investment,” replied his father. “And the return on investment in pearls and jades is how much?” “A hundredfold.” “And the return on investment from establishing a ruler and securing the state would be how much?” “It would be incalculable.”56 Lü adopted the prince’s cause and eventually contrived to make him King of Qin. He went on to became first minister for the king’s son, Qin Shi Huang, helping him defeat the other Warring States to became the first Emperor of China. We still have a compendium of political wisdom that Lü commissioned for the new emperor, which contains such military advice as the following: As a general principle, when an enemy’s army comes, it seeks some profit. Now if they come and find the prospect of death instead, they will consider running away the most profitable thing to do. When all one’s enemies consider running to be the most profitable thing to do, no blades will cross. This is the most essential point in military matters.