We need to consider debt forgiveness in the context of our $40 trillion deficit

Paul Vigna, An Ancient Sumerian Solution to Our $40 Trillion Deficit, Aug. 22, 2026.

The U.S. federal debt has hit $40 trillion. Add the debt owed by U.S. states, corporations and consumers, and the figure rises to about $77 trillion in debt, set against an annual gross domestic product of about $32 trillion. The interest on all of it is compounding constantly. It’s not just the United States, either. Globally, there is $350 trillion in debt, roughly treble global G.D.P. It’s like snowpack on a mountainside. It may look stable right now, but it’s creating the conditions for an avalanche. We are past the point where we can deal with our current debts in normal ways. The options open to us are extremely unlikely or highly destructive: Grow our way out of it, raise taxes, inflate the debt away or wait for the economic fallout.

Ancient societies had another method to deal with debt. It was called an amargi — a blanket declaration of public debt cancellation. All public debts written off. Disappeared. It sounds laughable, I know. But, really, that’s just because the idea has been buried so deeply in history that you’ve probably never heard of it. In the ancient world, it presented a pragmatic solution to an intractable problem. And now, faced with impossible-to-repay debts that are weighing down our economy, is the time to look at the amargi and the lessons it offers about how to think about finance.

Vigna then runs through a quick inventory debt forgiveness in the ancient world.

The reason the practice often worked in the first place was because the ancient world understood something about our monetary system we have mostly forgotten: Money is an invented social construct. It isn’t real, not in the way a tree or a stone is real. The system of money and credit is a thing humans made up. It’s a record-keeping device for distributing resources. And since money is a human creation, we can alter it when needed.

It’s hard to predict what will happen if we don’t address our debt, but it’s not hard to predict that the outcome will be bad. Governments can borrow to cover up other problems for only so long. Sometimes what comes next is a hyperinflationary spiral and economic collapse, as in Zimbabwe or Weimar Germany. Sometimes it’s a national default that rocks financial markets, such as in Egypt and Anatolia under the Ottoman Empire in the 1870s. And sometimes it’s just a steadily slipping quality of life as debt saps people’s ability to build their own wealth.

Money represents resources, or at least access to resources. When so much of it is going to debt repayment, it means money that could be spent on goods or services is diverted. The federal government now spends over $1 trillion a year on debt interest — money that could otherwise be spent on roads, schools or health care. [...] We are unlikely to see a modern amargi, but as a set of principles for reconsidering our relationship with money, its applicability is rich. [...] We need to start seeing money and debt the way people saw it back then: As a system to distribute resources that, like any system, can be periodically reset.