A 5,000-year-old plan to erase debts is now a hot topic in America

And that’s not unique to America. Steadily growing debts of one kind or another are weighing on economies all over the world.

The idea that debt can grow faster than the ability to repay, until it unbalances a society, was well understood thousands of years ago, according to Michael Hudson, an economist and historian. Last year he published “And Forgive Them Their Debts,’’ a study of the Near East in biblical times and even earlier. That’s where the tradition known as a “jubilee” — wiping the debt-slate clean — has its roots.

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Rulers weren’t motivated by charity, Hudson says. They were being pragmatic — trying to make sure that citizens could meet their own needs and contribute to public projects, instead of just laboring to pay creditors. And it worked, he says. “Societies that canceled the debts enjoyed stable growth for thousands of years.’’

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