Human beings who became a means of production and were enslaved were throughout the history of the human race to wealth, but the Americans of the late 18th century knew how to upgrade the system in a big way: they managed the machine called “slave” with more than a slave’s efficiency.
It started as always – a pair of working hands that serve as a completely disenfranchised means of production. But very quickly the slave in North America turned from a means of production into a product. When his owner asked for a loan from the bank, the slave was the collateral. In the America of the 18th and 19th centuries, people lived, not land, because land was abundant and of zero value. Slaves, on the other hand, are assets worth capital.
Now, when people become financial collateral, there is no choice – we need to establish an active and sophisticated industry of rating companies that will evaluate these assets so that their value can be determined. From here the road leads to the establishment of an array of insurance companies, which will insure the “safe”. After all, she can die or God forbid – run away. What will guarantee the bank the refund in such a case if it does not have a suitable insurance policy?
At this stage, when a complete financial system of graded and insured human securities is in operation, it is already possible to issue slaves on the stock exchange – they will be the backup for massive collections of money from the public through bonds. They will allow trading in securities whose value is determined by human equivalents.
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You are invited to episode 7 of the podcast, which will tell how the country that championed the values of equality and freedom was able to base an entire economy on an industry of people who were a financial product.