300 Trillion – The Debt Trap
- Description
- Reviews
- Citation
- Cataloging
- Transcript
When do debts become unsustainable? In Dubai the remnants of a past debt boom can be seen on the wayside: empty shells of grand buldings that were the ruin of many of investors. Yet the most outlandish project was "The World", a gigantic map of the world off the coast of the emirate, composed entirely of artificial islands. Josef Kleindienst, one of the only developers to have built on the islands, takes us on a tour of his luxury properties, designed as resorts for the super rich.
The film looks at entire countries on a sugar high of cheap credit, as well as impoverished states on a precipice of debt. It also tracks the impact of debts on vulnerable individuals. In Mississippi, Annita Husbands lived in a debtors' prison and toiled in a fast food restaurant to pay off a $13,000 debt. K.K. Kent, a businesswoman, is one of the employers who recruits farmhands from the prison service, and has her own views on the moral pitfalls of debt.
In Argentina, we met individuals who are suffering from the bankruptcy of their country. Argentina has had debt crises multiple times, including three brushes with bancruptcy in the last 20 years. The consequences are a general impoverishment of the population, forced to resort to bartering because the peso has devalued catastrophically, and to go and eat in soup kitchens.
These examples are punctuated by testimonies of renowned experts, including Richard Vague, a former banker and director of a credit card company, who explains why countries need debt to survive, Sandra Navidi, an international consultant, Christoph Trebesch, a financial historian and researcher at the University of Kiel, and Frederick Wherry of Princeton University who has researched the impact of racism on credit.
The film is a voyage of discovery through the continents. The absurdities found along the way are approached with a gentle dose of humor, a tongue-in-cheek sense of wonder at the follies of humankind. With a healthy mixture of playful observation and documentary precision, we address the big questions: How do other cultures deal with debt? What consequences can indebtedness have, for debtors and for creditors? And, especially, what solutions are there to manage the problem?
Citation
Main credits
Herzog, Rudolph (film director)
Kleinig, Jürgen (film producer)
Other credits
Director of photography, Henning Brümmer; editor, Barbara Zosel; composer, Friedericke Bernhardt.
Distributor subjects
No distributor subjects provided.Keywords
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(upbeat music)
00:00:26.850 --> 00:00:28.320
- [Narrator] The working day begins
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for one of the men who
in Spain are as legendary
00:00:31.530 --> 00:00:32.943
as they are infamous.
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(Miguel speaking in Spanish)
00:00:48.235 --> 00:00:51.390
(upbeat music)
00:00:51.390 --> 00:00:55.113
Debt Collectors in Tails have
been around for 30 years.
00:00:56.580 --> 00:00:58.020
The company's heyday was
00:00:58.020 --> 00:01:00.690
during the 2008 financial crisis
00:01:00.690 --> 00:01:03.123
when thousands of Spaniards went bankrupt.
00:01:03.957 --> 00:01:07.128
(gentle music)
00:01:07.128 --> 00:01:10.878
(Miguel speaking in Spanish)
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(gentle music)
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(Rafael speaking in Spanish)
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(upbeat music)
00:02:02.220 --> 00:02:06.595
In the worst cases, debtors
are confronted on the street.
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(upbeat music)
00:02:08.907 --> 00:02:12.574
(Rafael speaks in Spanish)
00:02:15.390 --> 00:02:17.940
Today the whole world
is in the same position
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as the Spaniard who can't pay.
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Private individuals,
companies and whole countries
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have been struggling with
steadily rising debts
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for over 15 years.
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The problem has been severely aggravated
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by the Corona pandemic
and the war in Ukraine.
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Does this mean the world
is about to collapse
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under a huge mountain of debt?
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(steal thuds)
(globe sighs)
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The world's total debt
currently exceeds $300 trillion.
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(upbeat music)
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That's a colossal number with 14 zeroes.
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To pay off this debt,
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everyone in the world would have to work
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for three and a half years.
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(upbeat music)
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(upbeat music)
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To find out what's going on in the world
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we decide to explore the
stories behind global debt.
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(upbeat music)
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We want to find out what's happening
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away from the headlines.
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(upbeat music)
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We visit people in debt
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and learn about the dramatic
impact it has on their lives.
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(upbeat music)
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We visit companies whose debts threaten
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to drive the workforce into poverty,
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and we go to countries with
vast levels of national debt.
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(upbeat music)
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We want to find out how the lives
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of ordinary people are affected.
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(upbeat music)
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Is the situation hopeless
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or are there any ways
out of the debt trap?
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(upbeat music)
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After the financial crisis of 2008,
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many states fell into debt.
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(tense music)
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Back then after a phase
of unbridled lending
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in the USA, a property bubble burst,
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major banks went bust and
the stock market collapsed.
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(tense music)
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The US government had to
take on staggering debts
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to save the economy.
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The debt crisis in the USA
triggered a global chain reaction
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that still resonates.
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(crowd clanking)
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To trace the long-term
impact of the 2008 crisis,
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we traveled to a country where
money seems to be no object,
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(dramatic music)
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the Emirate of Dubai.
00:05:01.627 --> 00:05:04.377
(dramatic music)
00:05:11.700 --> 00:05:13.860
There, we meet Sajja Maroof,
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an estate agent who wants to
show us something exquisite,
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a map of the world consisting
of artificial islands.
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In 2003, a state owned
corporation began constructing
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the World Islands and
selling them to investors.
00:05:31.350 --> 00:05:34.170
They wanted to build
retreats for the super rich,
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palaces like this one.
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(tense music)
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- Welcome to Sweden Beach Palace.
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Welcome to the homes of Viking.
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Only the kings are
allowed to stay over here.
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- [Narrator] The palace
provides an astonishing refuge
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from the outdoor temperatures
topping 45 degrees Celsius.
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- Scandinavian people, they
have a tradition to take sauna
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to open up the body pores, okay.
00:06:09.000 --> 00:06:11.160
So we have sauna over here.
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We can make it as a dry or a steam room.
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Then immediately when sauna is done,
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they have to take an ice bath,
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so we have our own snow room.
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(enchanting music)
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That's how you enjoy the snow.
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So the idea was this, how to
bring the whole world in Dubai?
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So that's Spain.
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You can see Portuguese over
there, and that's France.
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(jazzy music)
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- [Narrator] We try to
follow Mr. Maroof's logic,
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but we find it difficult
to make out the outlines
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of European countries.
00:07:00.501 --> 00:07:03.150
(jazzy music)
00:07:03.150 --> 00:07:06.390
The sharp contours have been eroded away.
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Since 2008, the project called
The World has laid dormant.
00:07:11.970 --> 00:07:15.120
(jazzy music)
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Nevertheless, one man still
wants to keep building
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on the artificial islands
and create a mini Europe.
00:07:22.230 --> 00:07:26.060
Yosef Kleindienst, an Austrian
businessman has wound up here
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in the Persian Gulf.
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(footsteps clomping)
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Part of his grand vision
can already be admired.
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(footsteps clomping)
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- Welcome to see Our
Heart of Europe Project.
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I want to point out first the location
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where we are right now.
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We are here in the roof of
Sweden Beach Palace number one,
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overlooking the Germany Islands
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here the two villas on beach, and pool.
00:07:55.230 --> 00:07:58.110
And you can see the Strande Coepe
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are already waiting for tourists.
00:08:02.100 --> 00:08:05.430
You see here our main island Europe
00:08:05.430 --> 00:08:08.910
hosting our hotels.
00:08:08.910 --> 00:08:12.120
Monaco Hotel is our first hotel to open,
00:08:12.120 --> 00:08:14.883
and it's a party hotel, 24/7 party.
00:08:15.762 --> 00:08:18.345
(upbeat music)
00:08:20.981 --> 00:08:22.500
- [Narrator] his is typical of Dubai,
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the epitome of abundance.
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A Switzerland beneath palm
trees welcoming anyone
00:08:27.360 --> 00:08:29.560
who wants to take the
wealth to the Emirate.
00:08:30.411 --> 00:08:32.994
(upbeat music)
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Postmodern towers sore up into the sky.
00:08:40.230 --> 00:08:43.411
They include the tallest
building in the world.
00:08:43.411 --> 00:08:46.650
(upbeat music)
00:08:46.650 --> 00:08:49.590
The Burj Khalifa skyscraper
was originally going
00:08:49.590 --> 00:08:51.810
to be called Burj Dubai,
00:08:51.810 --> 00:08:54.600
but the prestigious
building had to be renamed
00:08:54.600 --> 00:08:57.693
after the ruler of Abu
Dhabi, Sheikh Khalifa,
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the powerful neighbor helped Dubai out
00:09:01.560 --> 00:09:04.083
with an emergency loan in 2008.
00:09:05.730 --> 00:09:07.980
The Emirate with relatively little oil
00:09:07.980 --> 00:09:10.143
was on the verge of bankruptcy.
00:09:13.080 --> 00:09:15.240
Half finished buildings bear witness
00:09:15.240 --> 00:09:19.084
to the credit leveraged
madness a few years ago.
00:09:19.084 --> 00:09:21.584
(tense music)
00:09:23.317 --> 00:09:25.380
"Instead of lavish real estate,
00:09:25.380 --> 00:09:28.590
it would've been better to
invest in more sensible things,"
00:09:28.590 --> 00:09:32.843
says Christoph Trebesch,
Germany's sovereign debt expert.
00:09:32.843 --> 00:09:35.453
(tense music)
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(speaking in foreign language)
00:10:02.859 --> 00:10:05.442
(gentle music)
00:10:08.040 --> 00:10:11.520
When the inevitable crash hit
Dubai's real estate market,
00:10:11.520 --> 00:10:14.779
many international investors pulled out.
00:10:14.779 --> 00:10:16.560
(tense music)
00:10:16.560 --> 00:10:18.420
They included some who'd invested
00:10:18.420 --> 00:10:21.288
in the painstakingly created world map.
00:10:21.288 --> 00:10:23.788
(tense music)
00:10:26.010 --> 00:10:29.250
Some went bankrupt, others
were left with piles
00:10:29.250 --> 00:10:31.973
of sand whose value plummeted.
00:10:31.973 --> 00:10:34.380
(tense music)
00:10:34.380 --> 00:10:38.253
One even committed suicide
during the debt crisis.
00:10:38.253 --> 00:10:41.550
(tense music)
00:10:41.550 --> 00:10:45.063
Only Josef Kleindienst from
the Kleindienst Group held out.
00:10:46.500 --> 00:10:47.940
- There are other Europeans,
00:10:47.940 --> 00:10:50.370
they did not have the trust to stay
00:10:50.370 --> 00:10:52.710
or maybe they run out
of money or of funding.
00:10:52.710 --> 00:10:54.933
And it was not easy in 2008.
00:10:56.435 --> 00:10:57.268
I was was a policeman,
00:10:57.268 --> 00:11:01.560
and as a policeman you
learn there's a crisis,
00:11:01.560 --> 00:11:03.660
everyone run away, you
need to have to go there.
00:11:03.660 --> 00:11:05.460
You need to find out what's going on
00:11:05.460 --> 00:11:06.900
and you need to resolve it.
00:11:06.900 --> 00:11:09.690
And then we realize there are chances.
00:11:09.690 --> 00:11:11.550
When 40 the others run away
00:11:11.550 --> 00:11:13.140
you have a chance to take over part
00:11:13.140 --> 00:11:15.043
of their business for example.
00:11:15.043 --> 00:11:17.626
(upbeat music)
00:11:22.350 --> 00:11:24.750
- [Narrator] Even though
the world keeps stalling,
00:11:24.750 --> 00:11:26.403
life is creeping into it.
00:11:27.270 --> 00:11:30.990
Recently another investor
began building on the island
00:11:30.990 --> 00:11:33.457
that represents Argentina.
00:11:33.457 --> 00:11:36.040
(upbeat music)
00:11:39.360 --> 00:11:41.910
Time will tell whether
Kleindienst was right
00:11:41.910 --> 00:11:43.877
to stick by his vision.
00:11:43.877 --> 00:11:46.048
(upbeat music)
00:11:46.048 --> 00:11:49.131
(light bulb wheezes)
00:11:54.240 --> 00:11:57.300
Meanwhile, wealthy Russians
are expressing interest
00:11:57.300 --> 00:11:59.096
in flashy real estate.
00:11:59.096 --> 00:12:00.270
(upbeat music)
00:12:00.270 --> 00:12:03.783
They regard Dubai as a refuge
from sanctions and war.
00:12:04.667 --> 00:12:07.250
(upbeat music)
00:12:09.240 --> 00:12:11.370
Despite its past as a debtor,
00:12:11.370 --> 00:12:14.100
Dubai's image hasn't been tarnished.
00:12:14.100 --> 00:12:17.564
The Emirate was lucky
to get help so quickly.
00:12:17.564 --> 00:12:20.147
(upbeat music)
00:12:21.954 --> 00:12:26.704
(Christoph speaking in foreign language)
00:12:48.046 --> 00:12:50.629
(upbeat music)
00:12:53.845 --> 00:12:55.410
At the southernmost end of the world
00:12:55.410 --> 00:12:59.163
lies the undisputed bankruptcy
champion of our planet.
00:13:00.510 --> 00:13:03.183
Argentina has been bankrupt eight times.
00:13:05.010 --> 00:13:08.130
Sometimes international
financiers stepped in.
00:13:08.130 --> 00:13:10.713
Sometimes no aid was received.
00:13:12.210 --> 00:13:15.210
We can see here what happens
when a state has too much debt
00:13:15.210 --> 00:13:18.944
to meet its obligations
to the poorest people.
00:13:18.944 --> 00:13:21.180
(tense music)
00:13:21.180 --> 00:13:23.550
The slum called Villa 31
00:13:23.550 --> 00:13:25.800
spreads beneath the motorway bridges
00:13:25.800 --> 00:13:27.183
in central Buenos Aires.
00:13:28.141 --> 00:13:30.089
(tense music)
00:13:30.089 --> 00:13:33.010
(traffic revving)
00:13:33.010 --> 00:13:35.510
(tense music)
00:13:39.909 --> 00:13:42.871
(residents clanks)
00:13:42.871 --> 00:13:45.454
(food sizzles)
00:13:46.911 --> 00:13:50.391
At least 30,000 people live here.
00:13:50.391 --> 00:13:54.360
(residents chatting indistinctly)
00:13:54.360 --> 00:13:57.480
We meet one of the
residents, Martha Condori.
00:13:57.480 --> 00:14:00.053
She complains about the
conditions in the slump.
00:14:01.665 --> 00:14:06.165
(Martha speaking in foreign language)
00:14:15.164 --> 00:14:17.461
(indistinct music playing
in the background)
00:14:17.461 --> 00:14:22.044
(Martha speaking in foreign language)
00:14:51.390 --> 00:14:52.980
Martha feels abandoned
00:14:52.980 --> 00:14:55.893
by the permanently
bankrupt Argentine state.
00:14:58.923 --> 00:15:03.423
(Martha speaking in foreign language)
00:15:18.105 --> 00:15:22.688
(women chattering in foreign language)
00:15:24.660 --> 00:15:28.293
Thousands of Argentines rely on charities.
00:15:31.260 --> 00:15:33.330
A century ago, Argentina was one
00:15:33.330 --> 00:15:36.600
of the five richest
countries in the world.
00:15:36.600 --> 00:15:40.923
It has mineral resources and
a well-educated population.
00:15:42.150 --> 00:15:45.003
How could such a country fall so low?
00:15:49.339 --> 00:15:52.020
(gentle music)
00:15:52.020 --> 00:15:57.020
Alejandro Bercovich is an
economist and radio journalist.
00:15:57.150 --> 00:16:02.118
He's been studying why Argentina
can't escape the debt trap.
00:16:02.118 --> 00:16:05.496
(upbeat music)
00:16:05.496 --> 00:16:10.246
(Alejandro speaking in foreign language)
00:16:47.445 --> 00:16:50.112
(upbeat music)
00:16:53.940 --> 00:16:56.850
The result is ever higher deficits.
00:16:56.850 --> 00:16:58.410
And being so badly in debt,
00:16:58.410 --> 00:17:01.470
Argentina can't always
borrow money abroad.
00:17:01.470 --> 00:17:05.010
but it still has to pay pensions
and unemployment benefits,
00:17:05.010 --> 00:17:07.133
so it uses a trick.
00:17:07.133 --> 00:17:10.260
(upbeat music)
00:17:10.260 --> 00:17:12.210
Argentina simply prints large amounts
00:17:12.210 --> 00:17:14.875
of its own currency, the peso.
00:17:14.875 --> 00:17:18.120
(upbeat music)
00:17:18.120 --> 00:17:20.400
As we can see here, there's a money supply
00:17:20.400 --> 00:17:22.171
that can be used to buy goods.
00:17:22.171 --> 00:17:23.400
(people cheering)
00:17:23.400 --> 00:17:25.380
In order to meet the cost of the state,
00:17:25.380 --> 00:17:27.600
more and more money is printed,
00:17:27.600 --> 00:17:30.153
but the quantity of
goods remains the same.
00:17:31.410 --> 00:17:33.543
People can buy more with the new money.
00:17:34.472 --> 00:17:36.390
(money machine clicking)
00:17:36.390 --> 00:17:40.143
Retailers respond to higher
demand by raising their prices.
00:17:42.060 --> 00:17:44.029
Inflation takes hold.
00:17:44.029 --> 00:17:47.029
(people protesting)
00:17:49.600 --> 00:17:52.350
(birds chirping)
00:17:54.090 --> 00:17:57.789
Many Argentines can't
afford everyday items,
00:17:57.789 --> 00:18:00.538
(women chattering indistinctly)
00:18:00.538 --> 00:18:02.777
so people meet up to barter.
00:18:03.880 --> 00:18:07.301
(women chattering indistinctly)
00:18:07.301 --> 00:18:12.051
(Estefania speaking in foreign language)
00:18:21.514 --> 00:18:24.120
(women chattering indistinctly)
00:18:24.120 --> 00:18:26.820
Meetings are arranged
on Facebook and WhatsApp
00:18:26.820 --> 00:18:28.623
and then the group meets here.
00:18:29.714 --> 00:18:31.260
(women chattering indistinctly)
00:18:31.260 --> 00:18:33.480
Instead of money, they use points
00:18:33.480 --> 00:18:36.330
to determine the value of each item.
00:18:36.330 --> 00:18:38.700
Clothes, for example, can then be swapped
00:18:38.700 --> 00:18:41.702
for personal hygiene items and food.
00:18:41.702 --> 00:18:44.333
(women chattering in foreign language)
00:18:44.333 --> 00:18:49.083
(Estefania speaking in foreign language)
00:19:08.550 --> 00:19:11.910
Bartering looks up to
persist for a long time.
00:19:11.910 --> 00:19:16.200
After all, inflation in
Argentina is now over 80%.
00:19:16.200 --> 00:19:18.843
There's no end in sight
to the price spiral.
00:19:20.152 --> 00:19:24.735
(women chattering in foreign language)
00:19:28.921 --> 00:19:31.588
(upbeat music)
00:19:39.150 --> 00:19:41.430
Inflation is now a serious problem
00:19:41.430 --> 00:19:43.530
in the northern hemisphere too.
00:19:43.530 --> 00:19:46.860
In wealthy Germany, more and
more people are suffering
00:19:46.860 --> 00:19:49.858
from price rises for energy and food.
00:19:49.858 --> 00:19:52.441
(upbeat music)
00:19:54.720 --> 00:19:56.910
The share of income that low earners spend
00:19:56.910 --> 00:19:59.970
on living costs is
disproportionately high.
00:19:59.970 --> 00:20:01.770
That's why the poorest people fall
00:20:01.770 --> 00:20:04.080
into debt, especially often.
00:20:04.080 --> 00:20:06.663
(upbeat music)
00:20:09.180 --> 00:20:10.470
Duisburg is the city
00:20:10.470 --> 00:20:13.530
with the most over
indebted people in Germany.
00:20:13.530 --> 00:20:17.160
16% of its inhabitants
on the debt register
00:20:17.160 --> 00:20:20.471
compared to not even
half that many in Munich.
00:20:20.471 --> 00:20:23.054
(upbeat music)
00:20:27.030 --> 00:20:29.790
Frank Wendler, a local jack of all trades,
00:20:29.790 --> 00:20:33.513
knows firsthand just how bad
it is to be hopelessly in debt.
00:20:36.763 --> 00:20:41.096
(Frank singing in foreign language)
00:20:49.373 --> 00:20:53.790
(Frank speaking in foreign language)
00:21:19.395 --> 00:21:23.728
(Frank singing in foreign language)
00:21:25.500 --> 00:21:28.563
For decades, Wendler sold gas canisters,
00:21:29.460 --> 00:21:31.443
but the business had its pitfalls.
00:21:34.056 --> 00:21:38.473
(Frank speaking in foreign language)
00:21:54.149 --> 00:21:55.770
Fate took its course.
00:21:55.770 --> 00:21:59.583
After a tax audit, he owed
a large amount of back tax.
00:22:00.700 --> 00:22:04.370
(Frank singing in foreign language)
00:22:04.370 --> 00:22:08.787
(Frank speaking in foreign language)
00:22:21.007 --> 00:22:23.507
(tense music)
00:22:26.396 --> 00:22:30.813
(Frank speaking in foreign language)
00:22:37.140 --> 00:22:38.430
Like its citizens,
00:22:38.430 --> 00:22:41.460
Duisburg is also struggling
with a debt trap.
00:22:41.460 --> 00:22:44.310
Starting with the crisis
in the steel industry
00:22:44.310 --> 00:22:47.910
in the mid 1980s, things went downhill.
00:22:47.910 --> 00:22:51.651
And the once affluent city
now has an army of unemployed.
00:22:51.651 --> 00:22:53.910
(tense music)
00:22:53.910 --> 00:22:56.610
This change led to a string of problems
00:22:56.610 --> 00:23:00.330
that Duisburg's Chief Financial
Officer, Martin Murrack,
00:23:00.330 --> 00:23:02.336
is still struggling with.
00:23:02.336 --> 00:23:04.627
(tense music)
00:23:04.627 --> 00:23:09.127
(Martin speaking in foreign language)
00:23:48.164 --> 00:23:50.664
(tense music)
00:23:55.706 --> 00:23:57.360
The start of a downward spiral
00:23:57.360 --> 00:23:59.103
can be seen all over the country.
00:24:01.380 --> 00:24:04.473
Germany has been systematically
saving for decades.
00:24:05.370 --> 00:24:06.573
The debt level is low,
00:24:08.880 --> 00:24:12.870
but the result is potholes,
bridges in need of repair
00:24:12.870 --> 00:24:14.877
and rundown railways.
00:24:14.877 --> 00:24:17.377
(tense music)
00:24:22.080 --> 00:24:24.990
With Duisburg's drastic
cuts now behind it,
00:24:24.990 --> 00:24:27.420
a consolidation pact has been introduced
00:24:27.420 --> 00:24:30.093
to make the city more
attractive for investors.
00:24:31.170 --> 00:24:33.780
Nearly half of its debt has been paid off,
00:24:33.780 --> 00:24:36.900
partly thanks to the
development of Duisburg
00:24:36.900 --> 00:24:38.987
as a logistics hub.
00:24:38.987 --> 00:24:41.570
(upbeat music)
00:24:47.070 --> 00:24:50.100
The port of Duisburg is
the biggest inland port
00:24:50.100 --> 00:24:51.003
in the world.
00:24:53.000 --> 00:24:55.410
It lies at the end of
the Northern Silk Road,
00:24:55.410 --> 00:24:59.040
a branch of a huge trade
network being set up by China
00:24:59.040 --> 00:25:01.475
to connect with the rest of the world.
00:25:01.475 --> 00:25:03.003
(upbeat music)
00:25:03.003 --> 00:25:06.086
(machinery clanking)
00:25:07.170 --> 00:25:09.120
In Duisburg money is being pumped
00:25:09.120 --> 00:25:12.993
into the debt laden budget
by cooperation with China.
00:25:14.220 --> 00:25:17.400
But Chinese collaboration
isn't always this beneficial
00:25:17.400 --> 00:25:18.723
for its partners.
00:25:22.075 --> 00:25:26.825
(Christoph speaking in foreign language)
00:25:48.232 --> 00:25:50.732
(tense music)
00:25:53.130 --> 00:25:56.700
This map shows hard up countries
that build infrastructure
00:25:56.700 --> 00:25:59.490
for the Silk Road by taking out huge loans
00:25:59.490 --> 00:26:00.783
from Chinese banks.
00:26:01.960 --> 00:26:04.460
(tense music)
00:26:11.370 --> 00:26:13.320
China expert Thomas Heberer,
00:26:13.320 --> 00:26:15.300
is aware that China's loans
00:26:15.300 --> 00:26:17.499
can also have a positive effect.
00:26:17.499 --> 00:26:20.670
(tense music)
00:26:20.670 --> 00:26:25.170
(Thomas speaking in foreign language)
00:26:48.041 --> 00:26:51.210
(upbeat music)
00:26:51.210 --> 00:26:55.170
This is how economic growth
is created in Africa.
00:26:55.170 --> 00:26:58.230
However, China grants
loans without assessing
00:26:58.230 --> 00:27:01.590
whether the recipients can
manage the money properly.
00:27:01.590 --> 00:27:04.083
Heberer finds this problematic.
00:27:07.500 --> 00:27:12.000
(Thomas speaking in foreign language)
00:27:29.003 --> 00:27:31.586
(upbeat music)
00:27:32.573 --> 00:27:37.050
This is in Europe too, some
projects are questionable.
00:27:37.050 --> 00:27:38.400
In Montenegro,
00:27:38.400 --> 00:27:42.090
a Chinese company built the
country's first motorway
00:27:42.090 --> 00:27:44.760
over a length of 170 kilometers.
00:27:44.760 --> 00:27:48.273
It required 40 bridges and 90 tunnels.
00:27:49.482 --> 00:27:51.512
(upbeat music)
00:27:51.512 --> 00:27:56.012
(Thomas speaking in foreign language)
00:28:38.571 --> 00:28:41.238
(gentle music)
00:28:42.671 --> 00:28:44.910
The liabilities, have
since been transferred
00:28:44.910 --> 00:28:46.443
to three western banks.
00:28:47.430 --> 00:28:50.790
The port remains in
Montenegro's possession,
00:28:50.790 --> 00:28:53.673
but no one knows how
the debt will be repaid.
00:28:55.752 --> 00:28:58.335
(gentle music)
00:29:00.661 --> 00:29:03.244
(upbeat music)
00:29:10.470 --> 00:29:12.930
From the small republic in the Balkans,
00:29:12.930 --> 00:29:16.210
we traveled to the
heartland of capitalism.
00:29:16.210 --> 00:29:17.310
(upbeat music)
00:29:17.310 --> 00:29:20.010
In the US where people think big,
00:29:20.010 --> 00:29:22.362
debts are breaking all records.
00:29:22.362 --> 00:29:24.270
(upbeat music)
00:29:24.270 --> 00:29:26.220
During the COVID pandemic,
00:29:26.220 --> 00:29:29.368
the state's obligations skyrocketed.
00:29:29.368 --> 00:29:31.951
(upbeat music)
00:29:34.350 --> 00:29:37.533
The debt clock currently
reads $31 trillion.
00:29:38.428 --> 00:29:41.095
(clock ticking)
00:29:42.900 --> 00:29:47.553
That equates to debts of
$93,000 per head of population.
00:29:48.640 --> 00:29:49.715
(ground cracking)
00:29:49.715 --> 00:29:51.896
(globe crying)
(water splashing)
00:29:51.896 --> 00:29:53.310
(upbeat music)
00:29:53.310 --> 00:29:55.440
This amount is still rising
00:29:55.440 --> 00:29:58.470
and has serious consequences for society,
00:29:58.470 --> 00:30:00.400
says banker Richard Vague
00:30:01.980 --> 00:30:04.683
- Growth in debt increases inequality.
00:30:06.030 --> 00:30:11.030
The reason is that the
top 10% of most economies,
00:30:11.550 --> 00:30:13.800
certainly in the United States,
00:30:13.800 --> 00:30:18.800
own 60 to 70% of the real estate
and stock in that economy.
00:30:21.960 --> 00:30:26.610
Increase debt levels, increase
the value of real estate
00:30:26.610 --> 00:30:28.971
and increase the value of stocks.
00:30:28.971 --> 00:30:31.554
(upbeat music)
00:30:33.180 --> 00:30:35.760
- Financial expert, Sandra Navidi,
00:30:35.760 --> 00:30:39.060
understands the impact of
unequal wealth distribution
00:30:39.060 --> 00:30:40.623
on US society.
00:30:43.581 --> 00:30:48.081
(Sandra speaking in foreign language)
00:31:28.060 --> 00:31:30.643
(gentle music)
00:31:38.400 --> 00:31:42.690
The weakest in society suffer the most.
00:31:42.690 --> 00:31:44.850
Mississippi has the highest proportion
00:31:44.850 --> 00:31:47.190
of poverty in the USA.
00:31:47.190 --> 00:31:50.763
Known debtors make up
29% of the population,
00:31:51.660 --> 00:31:53.850
seven percentage points higher
00:31:53.850 --> 00:31:55.293
than the national average.
00:31:58.290 --> 00:31:59.880
For Annita husband,
00:31:59.880 --> 00:32:02.853
severe debt led to drastic repercussions.
00:32:03.840 --> 00:32:06.060
- Years ago, me and my husband,
00:32:06.060 --> 00:32:07.980
we were going through
financial difficulty.
00:32:07.980 --> 00:32:11.550
He wasn't working, I was working.
00:32:11.550 --> 00:32:14.280
I was in between paychecks
00:32:14.280 --> 00:32:18.930
because I started a new
job as a office manager.
00:32:18.930 --> 00:32:20.970
One morning I came into work,
00:32:20.970 --> 00:32:23.280
my truck was being repossessed.
00:32:23.280 --> 00:32:25.327
Another coworker came in and she said,
00:32:25.327 --> 00:32:27.000
"I'm gonna tell you what to do."
00:32:27.000 --> 00:32:32.000
She said, write a check
for John Doe for 365.
00:32:32.160 --> 00:32:33.570
Get the cash,
00:32:33.570 --> 00:32:38.570
then when you get paid, replace the cash.
00:32:39.000 --> 00:32:43.440
Okay, so I did that and payday comes
00:32:43.440 --> 00:32:44.400
and of course, you know,
00:32:44.400 --> 00:32:45.840
I have a million other bills,
00:32:45.840 --> 00:32:48.240
so I didn't replace the cash back.
00:32:48.240 --> 00:32:49.597
So you know, I'm thinking in my head,
00:32:49.597 --> 00:32:52.200
"Okay, this is pretty easy."
00:32:52.200 --> 00:32:56.550
So I started, I guess forming a habit.
00:32:56.550 --> 00:32:59.940
I would keep my paycheck and
I would pay my light bill
00:32:59.940 --> 00:33:04.251
with the fake checks or
the fraudulent checks.
00:33:04.251 --> 00:33:06.330
(gentle music)
00:33:06.330 --> 00:33:10.885
- [Narrator] Altogether
Annita embezzled $13,000.
00:33:10.885 --> 00:33:12.450
Her last in the year was found out.
00:33:12.450 --> 00:33:15.060
She was sentenced to five years probation
00:33:15.060 --> 00:33:16.968
and had to pay back the money.
00:33:16.968 --> 00:33:20.220
(gentle music)
00:33:20.220 --> 00:33:23.100
She was in a mess
because she lost her job.
00:33:23.100 --> 00:33:26.493
Her husband suffered a stroke
and was confined to bed.
00:33:28.275 --> 00:33:31.320
(gentle music)
00:33:31.320 --> 00:33:34.410
Annita regularly reported
to the probation officer.
00:33:34.410 --> 00:33:37.683
In return for his
services, he expected fees.
00:33:39.840 --> 00:33:42.840
- They have what they
call a supervision fee.
00:33:42.840 --> 00:33:45.570
We have to pay $60 a month.
00:33:45.570 --> 00:33:46.650
I didn't have it.
00:33:46.650 --> 00:33:51.650
I didn't even pay on
the $13,000 restitution,
00:33:51.870 --> 00:33:53.670
you know, no one's working.
00:33:53.670 --> 00:33:57.750
So the probation officer said,
"Well, if you don't have it,
00:33:57.750 --> 00:34:00.030
that is a violation of your probation
00:34:00.030 --> 00:34:02.970
because you have to report and pay."
00:34:02.970 --> 00:34:07.970
So I'm not going to leave my
basically paralyzed husband,
00:34:08.190 --> 00:34:13.190
three little kids home, so
I'm not gonna come back.
00:34:13.496 --> 00:34:16.079
(upbeat music)
00:34:18.426 --> 00:34:19.440
- [Narrator] Annita was arrested
00:34:19.440 --> 00:34:22.140
and put in restitution center.
00:34:22.140 --> 00:34:25.080
This means a debt prison
in Jackson, Mississippi,
00:34:25.080 --> 00:34:26.970
where prisoners served time
00:34:26.970 --> 00:34:29.147
until they've worked off their debts.
00:34:29.147 --> 00:34:32.550
(gentle music)
00:34:32.550 --> 00:34:36.420
These debts might be damages
owed to victims of crime
00:34:36.420 --> 00:34:38.403
or overdue court costs.
00:34:39.540 --> 00:34:43.470
Even for trifling amounts below $1,000,
00:34:43.470 --> 00:34:47.040
people can end up in this converted motel,
00:34:47.040 --> 00:34:50.253
but it has nothing to do
with holiday accommodation.
00:34:52.620 --> 00:34:55.740
- It's barbed wired, just like a jail.
00:34:55.740 --> 00:34:58.350
When you get in, they
go through your stuff,
00:34:58.350 --> 00:35:00.690
just like a jail, a prison.
00:35:00.690 --> 00:35:03.390
They strip search you just like a prison.
00:35:03.390 --> 00:35:06.210
And I never forget this, they
bought me there on a Friday.
00:35:06.210 --> 00:35:09.240
Mother's Day was on a Sunday.
00:35:09.240 --> 00:35:12.270
So they allowed me one call.
00:35:12.270 --> 00:35:14.820
I called my son, my oldest son,
00:35:14.820 --> 00:35:16.327
and the first thing he said was,
00:35:16.327 --> 00:35:18.720
"Happy Mother's Day mother."
00:35:18.720 --> 00:35:20.190
And that was so heartbreaking
00:35:20.190 --> 00:35:22.635
because I'm not gonna be there.
00:35:22.635 --> 00:35:25.218
(gentle music)
00:35:33.030 --> 00:35:34.920
- [Narrator] Besides the
prison-like conditions
00:35:34.920 --> 00:35:39.090
in the restitution center,
Annita was in for another shock:
00:35:39.090 --> 00:35:42.840
she was charged $11 a day
for board and lodging,
00:35:42.840 --> 00:35:44.703
which was added to her debts.
00:35:48.270 --> 00:35:49.620
Inmates even had to pay
00:35:49.620 --> 00:35:52.320
when the center was seeking
employment for them,
00:35:52.320 --> 00:35:54.273
no matter how long it took.
00:35:55.347 --> 00:35:57.930
(gentle music)
00:35:59.160 --> 00:36:01.740
Anita was relieved to get a part-time job
00:36:01.740 --> 00:36:04.833
at Church's Chicken, a
fast food restaurant.
00:36:06.000 --> 00:36:08.010
Accompanied by her daughter-in-law,
00:36:08.010 --> 00:36:11.280
she drives to her former place of work.
00:36:11.280 --> 00:36:14.673
The branch is in a particularly bad area.
00:36:16.050 --> 00:36:17.550
- The Church is seeking out hour a day.
00:36:17.550 --> 00:36:19.170
You can't sit down there and eat.
00:36:19.170 --> 00:36:21.030
You have to take everything to go
00:36:21.030 --> 00:36:24.870
and you talk, you know,
to them behind a glass.
00:36:24.870 --> 00:36:26.220
- [Driver] Okay, so it's not a dining in
00:36:26.220 --> 00:36:27.390
like most traditional?
- Uh-huh!
00:36:27.390 --> 00:36:29.100
And the glass was bulletproof
00:36:29.100 --> 00:36:33.063
because they had been
robbed so many times.
00:36:34.069 --> 00:36:35.319
- [Driver] Wow.
00:36:42.360 --> 00:36:43.740
- Do you smell Church's?
00:36:43.740 --> 00:36:45.093
- Yes.
00:36:46.437 --> 00:36:47.970
The smell of the grease-
- Yeah, I smell it.
00:36:47.970 --> 00:36:49.830
- The fried chicken.
00:36:49.830 --> 00:36:51.270
- [Driver] Yeah.
00:36:51.270 --> 00:36:53.523
- That smell brings back memories.
00:36:55.440 --> 00:36:57.660
First I didn't think anything about it,
00:36:57.660 --> 00:36:59.280
wasn't gonna phase me, no big deal.
00:36:59.280 --> 00:37:01.590
But then it's like I'm standing here
00:37:01.590 --> 00:37:03.960
and I'm picturing myself-
00:37:03.960 --> 00:37:05.580
- Here, still.
00:37:05.580 --> 00:37:08.730
- In there, you know, I really see that.
00:37:08.730 --> 00:37:12.810
You know, it's lunchtime now, you know?
00:37:12.810 --> 00:37:14.210
- It'd be the rush going on.
00:37:16.222 --> 00:37:17.670
- The prisoners to the prison.
00:37:17.670 --> 00:37:20.220
- [Narrator] Annita remembers
that she had high hopes
00:37:20.220 --> 00:37:21.723
of escaping the system.
00:37:22.590 --> 00:37:26.280
By doing additional tasks she
earned valuable bonus points
00:37:26.280 --> 00:37:29.043
that could be used to
reduce her time in custody.
00:37:30.120 --> 00:37:32.103
But she had a rude awakening.
00:37:33.090 --> 00:37:35.310
- I was, you know, scrubbing vans.
00:37:35.310 --> 00:37:37.950
I was working in the cafeteria.
00:37:37.950 --> 00:37:39.690
I was doing everything.
00:37:39.690 --> 00:37:41.010
Got my merits
00:37:41.010 --> 00:37:45.930
so I went to the warden and
she read my sentencing paper.
00:37:45.930 --> 00:37:47.700
Now, here I'm thinking
all I had to do is get,
00:37:47.700 --> 00:37:48.990
you know, so many merits
00:37:48.990 --> 00:37:51.303
and I can go back to my normal life.
00:37:52.320 --> 00:37:54.000
He said, "No, you have to stay here
00:37:54.000 --> 00:37:57.835
until $13,000 is paid off."
00:37:57.835 --> 00:38:00.418
(gentle music)
00:38:06.067 --> 00:38:09.870
- [Narrator] With a part-time
hourly wage of $7,25,
00:38:09.870 --> 00:38:11.760
lest attention costs,
00:38:11.760 --> 00:38:14.583
Annita's release was a distant prospect.
00:38:18.360 --> 00:38:21.810
It became apparent that she'd
have to serve the maximum term
00:38:21.810 --> 00:38:23.613
of five years in Jackson.
00:38:24.611 --> 00:38:27.194
(gentle music)
00:38:30.990 --> 00:38:34.470
Mississippi is joined by states like Iran,
00:38:34.470 --> 00:38:38.703
Egypt and Afghanistan that
also imprisoned debtors.
00:38:41.490 --> 00:38:44.973
Nowhere else does being in
debt lead to incarceration.
00:38:46.027 --> 00:38:49.056
(steal gates thudding)
00:38:49.056 --> 00:38:52.139
(tense upbeat music)
00:39:00.030 --> 00:39:02.250
We're interested in finding out what sort
00:39:02.250 --> 00:39:05.040
of people employ debtors like Annita
00:39:05.040 --> 00:39:06.783
from the restitution center.
00:39:09.060 --> 00:39:13.500
Businesswoman K.K. Kent has
several decades experience
00:39:13.500 --> 00:39:15.423
of such temporary workers.
00:39:17.370 --> 00:39:20.880
- When I was 19, I bought
my first rental properties
00:39:20.880 --> 00:39:24.660
and a lot of them had to
be excavated, remodeled,
00:39:24.660 --> 00:39:26.820
and it was hard to find labor,
00:39:26.820 --> 00:39:30.030
especially labor that was sober.
00:39:30.030 --> 00:39:33.480
So the restitution Center
opened up here in Greenwood
00:39:33.480 --> 00:39:34.623
when I was 19.
00:39:35.520 --> 00:39:37.980
And I used to go and get labor
00:39:37.980 --> 00:39:40.950
to help me do all my
day-to-Day operations,
00:39:40.950 --> 00:39:44.790
handle my livestock: cows, horses,
00:39:44.790 --> 00:39:48.330
load hay, unload hay,
load feed, unload feed,
00:39:48.330 --> 00:39:51.243
just stuff you have to do every
day when you're on a farm.
00:39:52.438 --> 00:39:55.105
(gentle music)
00:40:03.900 --> 00:40:06.180
- [Narrator] K.K. Kent has prospered
00:40:06.180 --> 00:40:08.280
and has more work than ever.
00:40:08.280 --> 00:40:10.200
She's an enterprising woman
00:40:10.200 --> 00:40:12.663
who's opened a shop and a restaurant.
00:40:14.010 --> 00:40:16.650
She also runs an animal shelter
00:40:16.650 --> 00:40:19.983
because she feels sorry for
strays and abandoned animals.
00:40:24.360 --> 00:40:27.690
But the staff she recruits
from the restitution center
00:40:27.690 --> 00:40:29.193
cause her problems.
00:40:31.470 --> 00:40:34.140
- And I may go through four
or five before I find one
00:40:34.140 --> 00:40:36.090
that I'm compatible and I can work with
00:40:36.990 --> 00:40:39.453
because a lot of them
think they're entitled.
00:40:40.320 --> 00:40:41.550
And as soon as you pick 'em up,
00:40:41.550 --> 00:40:44.850
they start asking, "Can I use your phone?
00:40:44.850 --> 00:40:47.250
Will you stop at the
store and buy me a drink?
00:40:47.250 --> 00:40:49.350
Will you buy me some cigarettes?"
00:40:49.350 --> 00:40:51.060
And there's been some that I've picked up
00:40:51.060 --> 00:40:55.770
and hadn't even driven
a half a mile that just,
00:40:55.770 --> 00:41:00.030
their demeanor, I didn't approve
of it and I turned around
00:41:00.030 --> 00:41:02.820
and took 'em right back
and sent 'em back in
00:41:02.820 --> 00:41:04.718
and got two more.
00:41:04.718 --> 00:41:08.430
(car engine revving)
00:41:08.430 --> 00:41:10.470
Well, if they come to me with an open mind
00:41:10.470 --> 00:41:13.560
and a hard work ethic,
they can learn a lot,
00:41:13.560 --> 00:41:15.480
'cause I can teach them.
00:41:15.480 --> 00:41:16.860
I've taught a lot of them plumbing,
00:41:16.860 --> 00:41:18.300
I've taught a lot of them gardening,
00:41:18.300 --> 00:41:20.253
I've taught a lot of them yard work.
00:41:21.240 --> 00:41:24.360
And people pay a lot of
money this day and time
00:41:24.360 --> 00:41:26.553
to have somebody come work in their yards.
00:41:28.410 --> 00:41:30.030
- [Narrator] Apart from instructions,
00:41:30.030 --> 00:41:33.843
K.K. also takes the salvation
of her workers to heart.
00:41:35.430 --> 00:41:37.560
- There were a few that wanted Bibles,
00:41:37.560 --> 00:41:41.070
so I asked for some Bibles
on my social media page
00:41:41.070 --> 00:41:43.650
and a lot of people brought
some to my restaurant.
00:41:43.650 --> 00:41:46.770
A few of them, they'll take the Bibles
00:41:46.770 --> 00:41:48.930
and they'll pull the pages out
00:41:48.930 --> 00:41:51.090
and use 'em to wrap up tobacco
00:41:51.090 --> 00:41:53.430
to make like a jailhouse cigarette,
00:41:53.430 --> 00:41:55.890
which that infuriates me.
00:41:55.890 --> 00:41:57.960
First of all, doing that to the Bible.
00:41:57.960 --> 00:42:01.380
And secondly, they're just
abused the kindness of somebody
00:42:01.380 --> 00:42:04.233
who went out of their way
to do something for them.
00:42:05.320 --> 00:42:07.890
(birds chirping)
00:42:07.890 --> 00:42:10.380
Some are very appreciative,
some are thankful,
00:42:10.380 --> 00:42:12.637
grateful for everything you do for 'em.
00:42:13.680 --> 00:42:15.367
You know, I've had some of them say,
00:42:15.367 --> 00:42:18.450
"You know, if I had a
mom like you growing up,
00:42:18.450 --> 00:42:21.450
you know, my life would've
been totally different."
00:42:21.450 --> 00:42:22.740
I don't try to cure 'em.
00:42:22.740 --> 00:42:26.280
I just tell 'em, "You know, you
need to pray about yourself.
00:42:26.280 --> 00:42:28.140
You need to figure out
your own self-discipline
00:42:28.140 --> 00:42:29.700
and do something about yourself.
00:42:29.700 --> 00:42:31.830
You don't need to look for other people
00:42:31.830 --> 00:42:35.017
because it's not of the
people's problem, your problem."
00:42:35.017 --> 00:42:37.600
(gentle music)
00:42:41.250 --> 00:42:43.710
- [Narrator] Annita husband
was in over her head
00:42:43.710 --> 00:42:44.913
with her problems.
00:42:47.910 --> 00:42:49.500
She had to think of something,
00:42:49.500 --> 00:42:52.440
otherwise, given the
amount of money she owed,
00:42:52.440 --> 00:42:54.963
it would be years before she was released.
00:42:57.487 --> 00:43:01.563
- $13,000 with a minimum
part-time paying job.
00:43:02.490 --> 00:43:04.797
I said, "Annita, you need a plan.
00:43:04.797 --> 00:43:06.826
You know, you need a
plan, you need a plan."
00:43:06.826 --> 00:43:08.040
(tense upbeat music)
00:43:08.040 --> 00:43:09.590
I just took my chances and ran.
00:43:10.808 --> 00:43:11.641
(tense upbeat music)
00:43:11.641 --> 00:43:14.130
- [Narrator] But the challenges were huge.
00:43:14.130 --> 00:43:17.250
She was only allowed
to leave to go to work.
00:43:17.250 --> 00:43:20.310
She was strictly searched twice a day
00:43:20.310 --> 00:43:23.957
and she only got $10 a
week for personal use.
00:43:23.957 --> 00:43:27.124
(tense upbeat music)
00:43:28.380 --> 00:43:30.060
- They used to give us a roll of quarters.
00:43:30.060 --> 00:43:31.980
You couldn't have dollars.
00:43:31.980 --> 00:43:36.150
So every morning I would
wear my hair in a ponytail.
00:43:36.150 --> 00:43:39.190
I would put the roll of quarters
00:43:40.590 --> 00:43:43.317
in my hair 'cause, you know,
in between the ponytail,
00:43:43.317 --> 00:43:45.060
and I would leave with the roll quarters.
00:43:45.060 --> 00:43:48.450
Come back, I would change
the quarters for dollars.
00:43:48.450 --> 00:43:51.540
I would roll the dollars or two fives,
00:43:51.540 --> 00:43:54.040
put it in my hair 'cause
I can get change at work.
00:43:56.250 --> 00:43:57.930
I hand washed my clothes,
00:43:57.930 --> 00:44:01.800
you know, stuff that I
would take the $10 for,
00:44:01.800 --> 00:44:04.110
I would, you know, do without.
00:44:04.110 --> 00:44:06.540
So I saved up enough for a bus ticket.
00:44:06.540 --> 00:44:10.140
This one particular
day I planned to leave.
00:44:10.140 --> 00:44:11.700
I had on my Church's uniform,
00:44:11.700 --> 00:44:14.190
but I had on a pair of blue jeans
00:44:14.190 --> 00:44:18.150
and a shirt under my
Church's Chicken uniform.
00:44:18.150 --> 00:44:21.700
So I got a friend to take
me to the bus station
00:44:23.490 --> 00:44:26.568
and I got on the bus and I came to Biloxi.
00:44:26.568 --> 00:44:29.151
(gentle music)
00:44:31.320 --> 00:44:34.080
- [Narrator] Eventually
Anita was arrested there
00:44:34.080 --> 00:44:37.170
and had to serve part of
her suspended sentence
00:44:37.170 --> 00:44:38.643
in an ordinary prison.
00:44:40.410 --> 00:44:45.240
After nine months she was
released, her debts were canceled.
00:44:45.240 --> 00:44:47.823
(gentle music)
00:44:50.820 --> 00:44:53.490
She doesn't have a good
word to say about the system
00:44:53.490 --> 00:44:55.113
of restitution centers.
00:44:57.120 --> 00:44:58.980
- My debt was pretty large.
00:44:58.980 --> 00:45:02.550
But there's been people
that's been at the restitution
00:45:02.550 --> 00:45:04.980
with maybe a $2,000 debt
00:45:04.980 --> 00:45:08.310
and three years later they're
still in the restitution.
00:45:08.310 --> 00:45:10.710
You say, "Well, one day
I'm gonna get to go home
00:45:10.710 --> 00:45:12.567
and, you know, be with my family,
00:45:12.567 --> 00:45:13.833
but you don't know when.
00:45:17.250 --> 00:45:21.063
I felt like restitution
centers should be wiped out.
00:45:22.537 --> 00:45:24.693
It's just an undercover of slavery.
00:45:25.751 --> 00:45:28.334
(gentle music)
00:45:37.581 --> 00:45:40.664
(tense upbeat music)
00:45:48.780 --> 00:45:51.540
- [Narrator] Is the fate of
people like Anita actually part
00:45:51.540 --> 00:45:56.090
of a perfidious system to
deliberately exploit debtors?
00:45:56.090 --> 00:45:57.750
(upbeat music)
00:45:57.750 --> 00:45:59.970
Working off debt under duress
00:45:59.970 --> 00:46:03.183
certainly has a long
wretched history in the USA.
00:46:04.120 --> 00:46:06.210
(upbeat music)
00:46:06.210 --> 00:46:09.240
Sociologist, Frederick
Wherry sees parallels
00:46:09.240 --> 00:46:12.627
with the end of slavery in 1865.
00:46:12.627 --> 00:46:15.840
(upbeat music)
00:46:15.840 --> 00:46:17.790
- So imagine you suddenly have
00:46:17.790 --> 00:46:20.850
more than 4 million African Americans
00:46:20.850 --> 00:46:24.057
who are told, "You are
no longer enslaved,"
00:46:24.990 --> 00:46:27.720
and you also have an economic system
00:46:27.720 --> 00:46:29.850
that has relied on that labor.
00:46:29.850 --> 00:46:32.880
This created a crisis.
00:46:32.880 --> 00:46:37.710
How are you going to keep
those plantations running,
00:46:37.710 --> 00:46:39.750
keep those factories going
00:46:39.750 --> 00:46:43.113
when you can no longer compel
people to work for you?
00:46:45.155 --> 00:46:47.910
And the answer to that was debt.
00:46:47.910 --> 00:46:50.550
Debt saved the economy.
00:46:50.550 --> 00:46:53.560
And the way that it saved the
economy is that the one thing
00:46:54.690 --> 00:46:56.990
that also happened at
the end of the Civil War
00:46:57.970 --> 00:47:00.390
is that a number of states
started implementing
00:47:00.390 --> 00:47:02.670
what they called black codes.
00:47:02.670 --> 00:47:06.420
And so these were rules
that were put in place.
00:47:06.420 --> 00:47:10.240
So that minor behavioral infractions
00:47:11.160 --> 00:47:14.220
would be the basis for
putting someone in jail.
00:47:14.220 --> 00:47:16.920
And so those infractions included things
00:47:16.920 --> 00:47:21.920
like using profanity, lewd behavior,
00:47:22.050 --> 00:47:25.683
committing adultery, and the list goes on.
00:47:27.510 --> 00:47:29.520
And when they would be taken to the court,
00:47:29.520 --> 00:47:31.440
if they didn't have bail money,
00:47:31.440 --> 00:47:34.263
then they were off onto the
Chang Gang or in prison.
00:47:35.730 --> 00:47:38.250
And these employers would
show up to the courts
00:47:38.250 --> 00:47:39.960
and say, "I will bail you out.
00:47:39.960 --> 00:47:43.680
I will pay for your bail,
allow you to not go to prison,
00:47:43.680 --> 00:47:46.350
but you'll need to work
for me for a period of time
00:47:46.350 --> 00:47:49.009
in order to pay me back."
00:47:49.009 --> 00:47:53.340
And so these people who
were told you are now free,
00:47:53.340 --> 00:47:56.790
discover that they are now no longer free.
00:47:56.790 --> 00:47:59.190
They are now bound by a contract.
00:47:59.190 --> 00:48:03.750
And so this was a way of making sure
00:48:03.750 --> 00:48:08.133
that that labor was tamed
and it was brought to heal.
00:48:09.509 --> 00:48:12.092
(upbeat music)
00:48:18.210 --> 00:48:20.820
- [Narrator] The systemic
discrimination of black people
00:48:20.820 --> 00:48:23.733
after slavery continues to this day.
00:48:25.290 --> 00:48:27.720
It's not just the neglected cemeteries
00:48:27.720 --> 00:48:31.050
of the freed slaves like
this one in New Jersey
00:48:31.050 --> 00:48:32.733
that bear witness to this.
00:48:35.580 --> 00:48:39.150
More than a quarter of
blacks can't get loans at all
00:48:39.150 --> 00:48:41.943
compared to just 17% of whites.
00:48:43.350 --> 00:48:44.730
And in black neighborhoods,
00:48:44.730 --> 00:48:49.050
debt collectors pursue debtors
especially often and hard.
00:48:49.050 --> 00:48:51.993
Court cases are more
frequent than for whites.
00:48:55.432 --> 00:48:58.015
(upbeat music)
00:49:06.240 --> 00:49:10.020
Differences in the USA
concern not only skin color
00:49:10.020 --> 00:49:12.600
but also generations.
00:49:12.600 --> 00:49:15.930
In the majority white
middle class 20 somethings
00:49:15.930 --> 00:49:19.713
are groaning under tuition fees,
which are higher than ever.
00:49:20.580 --> 00:49:22.950
One of them is Cassandra Jones
00:49:22.950 --> 00:49:25.113
who studied at New York University.
00:49:27.613 --> 00:49:30.660
- I studied public health and
I really wanna help people
00:49:30.660 --> 00:49:33.720
and that's the whole reason
why I furthered my education.
00:49:33.720 --> 00:49:35.520
And it feels very ironic to go
00:49:35.520 --> 00:49:39.300
to one of the best institutions
in the world study something
00:49:39.300 --> 00:49:42.750
that is meaningful, needed and impactful
00:49:42.750 --> 00:49:45.870
and still be struggling
to pay my rent each month
00:49:45.870 --> 00:49:48.060
and put food on my table.
00:49:48.060 --> 00:49:51.450
(gentle music)
00:49:51.450 --> 00:49:52.950
- [Narrator] The cost of student loans
00:49:52.950 --> 00:49:54.813
in the US is rising sharply.
00:49:56.944 --> 00:50:01.290
In 2006, American students
owed half a trillion dollars
00:50:01.290 --> 00:50:02.910
in student loan debt.
00:50:02.910 --> 00:50:05.920
This figure has since
risen to $1.7 trillion
00:50:06.810 --> 00:50:09.416
as much as it least GDP.
00:50:09.416 --> 00:50:11.999
(gentle music)
00:50:17.250 --> 00:50:21.183
For people like Cassandra,
this is a huge debt burden.
00:50:23.670 --> 00:50:28.200
- The total amount of my debt
when I graduated was $167,000
00:50:28.200 --> 00:50:30.570
and I wasn't sure how I was gonna be able
00:50:30.570 --> 00:50:31.953
to afford to pay for it.
00:50:34.380 --> 00:50:36.450
A roommate of mine actually told me
00:50:36.450 --> 00:50:38.520
that she had donated her eggs.
00:50:38.520 --> 00:50:41.100
I was able to watch the
process of her egg donations
00:50:41.100 --> 00:50:42.570
and she was able to make anywhere
00:50:42.570 --> 00:50:45.300
from 6 to $10,000 in a month.
00:50:45.300 --> 00:50:48.630
So it felt like a very creative solution
00:50:48.630 --> 00:50:50.850
to a problem that I
couldn't find support in,
00:50:50.850 --> 00:50:53.229
I didn't find any answers to.
00:50:53.229 --> 00:50:56.250
(water burbles)
00:50:56.250 --> 00:50:59.040
I was terrified to donate.
00:50:59.040 --> 00:51:00.840
It is an invasive procedure.
00:51:00.840 --> 00:51:02.700
They do put you to sleep through it
00:51:02.700 --> 00:51:04.830
and you have to give yourself injections
00:51:04.830 --> 00:51:09.240
over the course of like
10 days to 14 days.
00:51:09.240 --> 00:51:13.590
I've experienced everything
from bloating to night sweats,
00:51:13.590 --> 00:51:17.280
to changes in sex drive, mood swings.
00:51:17.280 --> 00:51:18.780
I mean, there's a lot
of different symptoms
00:51:18.780 --> 00:51:19.923
that have occurred.
00:51:23.730 --> 00:51:24.930
- [Narrator] The financial pressure
00:51:24.930 --> 00:51:27.450
on Cassandra was relentless
00:51:27.450 --> 00:51:30.693
so she endured the
procedure four more times.
00:51:33.660 --> 00:51:35.700
- The whole reason why I
felt comfortable donating
00:51:35.700 --> 00:51:38.910
so many times is because
my body rebounded.
00:51:38.910 --> 00:51:41.370
But after the fourth donation,
00:51:41.370 --> 00:51:45.420
I noticed some changes that were lasting.
00:51:45.420 --> 00:51:48.240
And now definitely after
this last donation,
00:51:48.240 --> 00:51:50.403
I felt like my body was put through hell.
00:51:54.960 --> 00:51:57.330
Those last couple of donations
00:51:57.330 --> 00:51:59.763
were purely out of desperation.
00:52:00.840 --> 00:52:05.840
But at this point it feels
like I've barely made a dent.
00:52:08.040 --> 00:52:09.280
And that mountain
00:52:10.596 --> 00:52:14.223
of debt is still a very
heavy burden to carry.
00:52:15.496 --> 00:52:18.579
(train engine chugs)
00:52:26.820 --> 00:52:29.250
- [Narrator] Debt problems
like Cassandra's mean
00:52:29.250 --> 00:52:33.480
that many young people in the
USA can't plan their futures
00:52:33.480 --> 00:52:35.223
in the way their parents did.
00:52:39.420 --> 00:52:43.260
- When I was 18 and
being the oldest of four,
00:52:43.260 --> 00:52:45.060
coming from a big family,
00:52:45.060 --> 00:52:48.330
I actually used to think that
I'll be a mom myself one day
00:52:48.330 --> 00:52:50.193
and I'll have kids of my own one day,
00:52:51.480 --> 00:52:54.540
I'll get married, I'll be able
to afford a house one day.
00:52:54.540 --> 00:52:58.323
And my entire viewpoint
on that has changed.
00:53:00.180 --> 00:53:04.080
It's not exactly something
that is now a priority for me.
00:53:04.080 --> 00:53:09.080
And I think a lot of young
people have been forced
00:53:09.270 --> 00:53:10.590
to shift their priorities.
00:53:10.590 --> 00:53:13.950
So it's, I don't feel like
I have a choice anyway,
00:53:13.950 --> 00:53:16.420
so I might as well put this to bed
00:53:17.460 --> 00:53:20.557
and be at peace with the
fact that I may not be a mom.
00:53:21.399 --> 00:53:23.518
(gentle music)
00:53:23.518 --> 00:53:26.601
(train engine chugs)
00:53:35.683 --> 00:53:40.433
(Christoph speaking in foreign language)
00:54:19.951 --> 00:54:22.534
(upbeat music)
00:54:29.157 --> 00:54:31.500
- [Narrator] But some lucky
people don't get stuck
00:54:31.500 --> 00:54:33.750
on a treadmill of repayments.
00:54:33.750 --> 00:54:37.462
The USA is also a country
of smart solutions.
00:54:37.462 --> 00:54:39.780
(upbeat music)
00:54:39.780 --> 00:54:42.120
In Texas, we meet a woman who had
00:54:42.120 --> 00:54:44.853
to find a creative way out of her debts.
00:54:46.680 --> 00:54:49.055
- My name is Allie Eve Knox.
00:54:49.055 --> 00:54:52.260
I have two bachelor's degrees
and a master's degree.
00:54:52.260 --> 00:54:55.650
My student loan debt was insane,
like over a hundred grand.
00:54:55.650 --> 00:54:56.483
And it was one of those things
00:54:56.483 --> 00:54:57.700
where I was like working all the time
00:54:57.700 --> 00:54:59.850
for a job that I had
gone to grad school for
00:54:59.850 --> 00:55:02.580
and I had like $10 left
at the end of each month.
00:55:02.580 --> 00:55:03.810
And it was one of those
things where I never,
00:55:03.810 --> 00:55:06.600
like, there was never a time in the future
00:55:06.600 --> 00:55:09.113
when I could think about
something being different.
00:55:10.260 --> 00:55:11.370
I support my brother
00:55:11.370 --> 00:55:14.400
and so it was not an option to be broke.
00:55:14.400 --> 00:55:15.960
So I had to figure out
another way out of debt,
00:55:15.960 --> 00:55:18.810
and that was just to make more money.
00:55:18.810 --> 00:55:22.833
So I started hustling
and it started working.
00:55:24.030 --> 00:55:25.030
I'll show it to you.
00:55:31.110 --> 00:55:33.930
So these are some of
my various work things.
00:55:33.930 --> 00:55:36.783
I have dog mask, chassis devices,
00:55:38.190 --> 00:55:41.223
big chains (laughs) and leather.
00:55:42.420 --> 00:55:45.510
I am a fetish performer
and content creator.
00:55:45.510 --> 00:55:48.960
So I do things like live cam, cell videos,
00:55:48.960 --> 00:55:51.570
subscription services, that kind of thing.
00:55:51.570 --> 00:55:53.940
Everything in the adult arena.
00:55:53.940 --> 00:55:56.850
I'm specialized in financial domination.
00:55:56.850 --> 00:56:00.540
So it's a lot of
dominating men's finances.
00:56:00.540 --> 00:56:02.430
So it's a thing where,
00:56:02.430 --> 00:56:04.170
it's not just a power control,
00:56:04.170 --> 00:56:06.120
it's not just I take your money,
00:56:06.120 --> 00:56:08.280
it's more of a long-term relationship
00:56:08.280 --> 00:56:09.840
that we have between each other
00:56:09.840 --> 00:56:11.370
where I'm gonna benefit
00:56:11.370 --> 00:56:14.043
and you're gonna work
very, very hard for me.
00:56:14.912 --> 00:56:17.250
(upbeat music)
00:56:17.250 --> 00:56:20.040
- Allie's clients
present her lavish gifts,
00:56:20.040 --> 00:56:22.530
like expensive designer clothes.
00:56:22.530 --> 00:56:25.234
They also make regular tribute payments.
00:56:25.234 --> 00:56:27.901
(upbeat music)
00:56:29.520 --> 00:56:33.720
Allie's money slaves
also known as pay pigs,
00:56:33.720 --> 00:56:35.853
are completely under her thumb.
00:56:39.090 --> 00:56:42.750
- Pretty, smart, perfect girls like me
00:56:42.750 --> 00:56:46.050
shouldn't have to do anything
00:56:46.050 --> 00:56:47.787
because men like you
00:56:47.787 --> 00:56:51.000
are just sitting there waiting to serve.
00:56:51.000 --> 00:56:54.060
Start spending, start sending,
00:56:54.060 --> 00:56:57.930
make it where I never have to work again.
00:56:57.930 --> 00:56:59.430
I wanna be in the wheel, right?
00:56:59.430 --> 00:57:03.480
I want the houses and the cars
and this like extended life.
00:57:03.480 --> 00:57:04.710
That's really what I'm looking for.
00:57:04.710 --> 00:57:05.640
Like I want the ones
00:57:05.640 --> 00:57:08.160
that are going to
completely devote their life
00:57:08.160 --> 00:57:09.480
to serving me.
00:57:09.480 --> 00:57:11.910
It gives them a purpose
that makes them work harder,
00:57:11.910 --> 00:57:14.640
or work smarter or work
stronger or whatever.
00:57:14.640 --> 00:57:16.590
I don't care what kind of pain you feel
00:57:16.590 --> 00:57:20.073
or what you had to go through
to get the things that I want,
00:57:21.540 --> 00:57:23.100
I still want 'em.
00:57:23.100 --> 00:57:25.110
And I know that you're
gonna give me everything
00:57:25.110 --> 00:57:27.183
over and over and over and over again.
00:57:29.670 --> 00:57:33.270
- [Narrator] Allie has the
power to ruin her pay pigs,
00:57:33.270 --> 00:57:36.270
but she'd rather educate
her indebted clients
00:57:36.270 --> 00:57:38.670
to be responsible with their money.
00:57:38.670 --> 00:57:42.750
- I'm not into people worsening
their lives to better mine.
00:57:42.750 --> 00:57:44.610
I want someone that's gonna
make smarter decisions.
00:57:44.610 --> 00:57:47.190
So if it's not going to
Starbucks every single morning,
00:57:47.190 --> 00:57:48.900
or if it's you go to the gym
00:57:48.900 --> 00:57:50.730
because you're gonna live longer,
00:57:50.730 --> 00:57:51.810
like these types of things
00:57:51.810 --> 00:57:53.880
where they make investments in themselves.
00:57:53.880 --> 00:57:55.890
There's a training that
goes on here, right?
00:57:55.890 --> 00:57:59.040
It's training them to be what I want
00:57:59.040 --> 00:58:03.120
and that's a more productive
fucking person in society.
00:58:03.120 --> 00:58:05.070
I don't want them to be going into debt
00:58:05.070 --> 00:58:07.820
and worrying about how they're
gonna pay me next month.
00:58:09.360 --> 00:58:12.780
- [Narrator] Allie has
arranged to meet Nick online.
00:58:12.780 --> 00:58:16.743
He's totally devoted to her
in every aspect of his life.
00:58:17.820 --> 00:58:19.860
- All right, so tell
them about the morning
00:58:19.860 --> 00:58:21.840
of the tornado coming through your house.
00:58:21.840 --> 00:58:23.373
What did you wake up and do?
00:58:24.960 --> 00:58:25.793
- Um (laughs).
00:58:31.117 --> 00:58:32.520
I woke up and I-
00:58:32.520 --> 00:58:34.230
- Tell 'em what happened.
00:58:34.230 --> 00:58:37.983
- Oh, okay, on July 29th,
a tornado hit my house,
00:58:38.820 --> 00:58:40.530
totally obliterated it-
00:58:40.530 --> 00:58:42.470
- And you had lost everything.
00:58:42.470 --> 00:58:44.670
- So I wake up the next morning
00:58:44.670 --> 00:58:49.670
and I sent you some, you know, some money.
00:58:50.580 --> 00:58:52.500
It was just an automatic thing to do
00:58:52.500 --> 00:58:54.090
and I'm like, you know,
00:58:54.090 --> 00:58:57.990
so it was just sort of trying
to get some control of,
00:58:57.990 --> 00:59:00.663
some normalcy back in my
life, which is, you know?
00:59:01.617 --> 00:59:02.760
- And then you didn't tell me
00:59:02.760 --> 00:59:04.260
that a tornado had wrecked your house
00:59:04.260 --> 00:59:06.450
until after you had paid me.
00:59:06.450 --> 00:59:07.800
- Yes, that is true.
00:59:07.800 --> 00:59:08.823
- A little sneaky.
00:59:09.990 --> 00:59:10.830
- Yeah, okay, yeah.
00:59:10.830 --> 00:59:12.980
Didn't tell a lot of
people, but, you know?
00:59:13.860 --> 00:59:16.503
- Why do you wanna put me
in your life insurance?
00:59:16.503 --> 00:59:19.080
Because, well, 'cause you mean a lot to me
00:59:19.080 --> 00:59:21.420
and I just wanna make sure
00:59:21.420 --> 00:59:26.420
that eventually when that
happens, good things come to you.
00:59:28.757 --> 00:59:30.060
(laughs) You know?
00:59:30.060 --> 00:59:32.913
So my kids are aware of the situation,
00:59:34.890 --> 00:59:37.110
so I mean they get part of it too,
00:59:37.110 --> 00:59:40.050
but yeah, they're aware, yeah, so.
00:59:40.050 --> 00:59:41.220
- Thank you for meeting with me.
00:59:41.220 --> 00:59:43.320
This was very sweet of you.
00:59:43.320 --> 00:59:44.910
- Oh no, thank you for having me.
00:59:44.910 --> 00:59:48.330
Whatever I can do to help
you make your life easier,
00:59:48.330 --> 00:59:49.885
you know, I'm there for you,
00:59:49.885 --> 00:59:50.718
you know?
- Yeah.
00:59:50.718 --> 00:59:51.551
I appreciate you, Nick.
00:59:51.551 --> 00:59:52.384
You did a great job.
00:59:52.384 --> 00:59:53.420
You were a very good boy.
00:59:54.360 --> 00:59:55.995
- [Nick] Ah, thank you.
00:59:55.995 --> 00:59:58.578
(upbeat music)
01:00:07.290 --> 01:00:08.880
- [Narrator] Thanks to men like Nick,
01:00:08.880 --> 01:00:11.853
Allie now has plenty of
time for an unusual hobby.
01:00:13.140 --> 01:00:14.520
- So I started this dollhouse
01:00:14.520 --> 01:00:16.830
and it just morphed into this huge thing.
01:00:16.830 --> 01:00:18.360
And I made a lot of this stuff.
01:00:18.360 --> 01:00:21.223
I made this little dungeon bed.
01:00:21.223 --> 01:00:25.965
A TikTok fan made this for me
and sent me a little paddle.
01:00:25.965 --> 01:00:28.548
(upbeat music)
01:00:31.590 --> 01:00:32.970
- [Narrator] Allie wouldn't be Allie
01:00:32.970 --> 01:00:35.335
if she didn't make money out of it too.
01:00:35.335 --> 01:00:38.580
(upbeat music)
01:00:38.580 --> 01:00:40.980
- I took this content
and I sold it initially
01:00:40.980 --> 01:00:42.540
before I put it on my social media.
01:00:42.540 --> 01:00:45.720
So I made about $2,000
for people contributing
01:00:45.720 --> 01:00:47.970
and wanting to see what I was up to.
01:00:47.970 --> 01:00:48.960
And I have a TikTok,
01:00:48.960 --> 01:00:52.290
that's my thirst traps,
and it's like 98% men.
01:00:52.290 --> 01:00:56.010
And then I have a TikTok, that's
my art and it's 98% women.
01:00:56.010 --> 01:00:59.520
So it was my way to like kind
of sneak this sex worky type
01:00:59.520 --> 01:01:01.883
of vibe into a mainstream.
01:01:01.883 --> 01:01:05.280
(upbeat music)
01:01:05.280 --> 01:01:07.650
- [Narrator] Thanks to
her many sources of money,
01:01:07.650 --> 01:01:09.663
Allie is now completely debt free.
01:01:10.980 --> 01:01:13.560
Anyone who can drastically
increase their income
01:01:13.560 --> 01:01:16.173
and get out of debt is sitting pretty.
01:01:17.392 --> 01:01:19.975
(upbeat music)
01:01:22.980 --> 01:01:26.010
Sadly, Allie's solution isn't universal.
01:01:26.010 --> 01:01:29.250
It certainly doesn't work
for indebted countries.
01:01:29.250 --> 01:01:33.183
Higher government revenues
often mean higher taxes.
01:01:35.150 --> 01:01:36.219
- Hm.
01:01:36.219 --> 01:01:39.000
(upbeat music)
01:01:39.000 --> 01:01:41.883
- [Narrator] But this is
often counterproductive.
01:01:44.250 --> 01:01:48.363
- If the government taxes individuals,
01:01:49.350 --> 01:01:53.160
it means those individuals
are able to spend less
01:01:53.160 --> 01:01:56.160
and a government uses
that to pay off debt.
01:01:56.160 --> 01:01:58.830
The government itself is
not using those tax dollars
01:01:58.830 --> 01:02:00.600
to spend more.
01:02:00.600 --> 01:02:02.583
So the math is obvious.
01:02:03.660 --> 01:02:05.730
The folks paying tax spend less,
01:02:05.730 --> 01:02:10.380
the government spending
the same, GDP shrinks.
01:02:10.380 --> 01:02:13.290
So tax where you repay debt
01:02:13.290 --> 01:02:17.580
actually contracts GDP and
creates the opposite effect
01:02:17.580 --> 01:02:18.936
that you want.
01:02:18.936 --> 01:02:21.626
(upbeat music)
01:02:21.626 --> 01:02:22.459
- [Narrator] But what about starting
01:02:22.459 --> 01:02:23.913
with government spending?
01:02:25.020 --> 01:02:27.460
Couldn't states just save like mad
01:02:29.940 --> 01:02:32.505
until their debts have disappeared?
01:02:32.505 --> 01:02:35.088
(gentle music)
01:02:37.104 --> 01:02:41.604
(Sandra speaking in foreign language)
01:03:07.251 --> 01:03:09.918
(upbeat music)
01:03:15.690 --> 01:03:19.760
Much of what looks like a
solution can actually be harmful.
01:03:19.760 --> 01:03:22.343
(upbeat music)
01:03:23.310 --> 01:03:26.968
If so, how can we get control
of the global debt problem?
01:03:26.968 --> 01:03:29.635
(upbeat music)
01:03:31.050 --> 01:03:35.013
Perhaps there are old ideas
outside the world of finance.
01:03:37.590 --> 01:03:40.263
This leads us to Synagogue in Brooklyn.
01:03:44.280 --> 01:03:47.733
Sandra Navidi meets
the rabbi, Emily Cohen.
01:03:51.300 --> 01:03:53.280
- [Emily] So I guess you could say
01:03:53.280 --> 01:03:56.853
that debt isn't anything new in society.
01:03:59.550 --> 01:04:04.083
If we go back all the way to
some of our earliest texts,
01:04:06.840 --> 01:04:09.720
this is a Torah scroll,
01:04:09.720 --> 01:04:12.810
which we've had in the Jewish world
01:04:12.810 --> 01:04:15.720
for thousands of years at this point.
01:04:15.720 --> 01:04:19.650
In the text you find
this discussion of debt.
01:04:19.650 --> 01:04:21.533
If you can grab the cover.
01:04:22.662 --> 01:04:23.582
Keep going.
01:04:23.582 --> 01:04:24.415
- [Sandra] Okay.
01:04:24.415 --> 01:04:26.580
- So there's a concept
in the book of Leviticus
01:04:26.580 --> 01:04:27.630
that then is echoed
01:04:27.630 --> 01:04:30.450
in the book of Deuteronomy called Shmita.
01:04:30.450 --> 01:04:32.970
And what Shmita is a land rest.
01:04:32.970 --> 01:04:36.870
It's this idea that for
six years you plant grain,
01:04:36.870 --> 01:04:38.340
you plant your crops,
01:04:38.340 --> 01:04:40.080
you harvest them as you normally would,
01:04:40.080 --> 01:04:42.390
and then in the seventh year
you don't plant anything.
01:04:42.390 --> 01:04:44.460
It's a time where the land is supposed
01:04:44.460 --> 01:04:46.140
to get a chance to reset.
01:04:46.140 --> 01:04:48.930
And as part of that process,
01:04:48.930 --> 01:04:53.250
as part of that reset, there's
also remission of debt.
01:04:53.250 --> 01:04:55.920
So there's this idea that
any debt that you have
01:04:55.920 --> 01:04:58.590
that you've taken on during
the sixth years leading up
01:04:58.590 --> 01:05:01.713
to the Shmita year is
released in the seventh year.
01:05:05.059 --> 01:05:07.020
- [Narrator] It is unlikely
that this debt remission
01:05:07.020 --> 01:05:09.273
was ever implemented to the letter.
01:05:11.520 --> 01:05:13.350
- But the ideal of this,
01:05:13.350 --> 01:05:17.760
the ideal of saying that people
sometimes will be in debt,
01:05:17.760 --> 01:05:20.517
that there will be people who are in need,
01:05:20.517 --> 01:05:21.350
and that ultimately
01:05:21.350 --> 01:05:23.190
that can't be something
that continues forever.
01:05:23.190 --> 01:05:26.100
I think that that ideal is
something to strive for,
01:05:26.100 --> 01:05:28.620
even if we haven't figured out how yet.
01:05:28.620 --> 01:05:30.600
And so one way that's happening this year
01:05:30.600 --> 01:05:31.830
is that I have colleagues,
01:05:31.830 --> 01:05:33.780
I know of one for sure in Philadelphia
01:05:33.780 --> 01:05:35.730
and some other places as well,
01:05:35.730 --> 01:05:38.370
that have been raising
funds during the Shmita year
01:05:38.370 --> 01:05:39.630
to relieve medical debt,
01:05:39.630 --> 01:05:43.050
which is a huge problem
in the United States
01:05:43.050 --> 01:05:46.230
and something that feels
just immoral on every level.
01:05:46.230 --> 01:05:47.940
So again, I don't know how we do this.
01:05:47.940 --> 01:05:49.800
I don't know how we take the Torah
01:05:49.800 --> 01:05:54.570
with all of its complexity
and its sometimes
01:05:54.570 --> 01:05:57.600
less than fully
universalistic perspectives
01:05:57.600 --> 01:05:59.370
and make it something that we can apply,
01:05:59.370 --> 01:06:01.500
but I hope we can one day.
01:06:01.500 --> 01:06:04.050
The sense that my grandma
gave them the downplay-
01:06:04.050 --> 01:06:06.420
- [Narrator] Objectives
claim that debt remission
01:06:06.420 --> 01:06:09.873
might be an invitation to
get recklessly into debt,
01:06:12.570 --> 01:06:15.183
but financial experts disagree.
01:06:17.130 --> 01:06:18.720
- So the moral hazard argument
01:06:18.720 --> 01:06:21.270
is the one that is always advanced.
01:06:21.270 --> 01:06:26.270
If we give an inch,
borrowers will take a mile,
01:06:26.400 --> 01:06:29.403
irresponsible behavior will proliferate.
01:06:30.870 --> 01:06:32.550
And yet when we examine the facts,
01:06:32.550 --> 01:06:34.680
we see that that's not the case.
01:06:34.680 --> 01:06:37.200
Bankruptcy is a miserable experience
01:06:37.200 --> 01:06:39.210
in the best of circumstances
01:06:39.210 --> 01:06:41.820
for the average individual borrower.
01:06:41.820 --> 01:06:44.220
It's not something they go into lightly.
01:06:44.220 --> 01:06:48.540
And in fact, when we examine bankruptcy,
01:06:48.540 --> 01:06:53.540
it relates to just two or three
key things most of the time.
01:06:53.790 --> 01:06:56.460
Unexpected health emergency,
01:06:56.460 --> 01:07:00.630
unexpected job loss and divorce.
01:07:00.630 --> 01:07:03.030
If those are the things that constitute,
01:07:03.030 --> 01:07:05.760
you know, almost all bankruptcies,
01:07:05.760 --> 01:07:10.470
that's not evidence that there's
folks out there purposely,
01:07:10.470 --> 01:07:12.540
listen, I'll lose my job
01:07:12.540 --> 01:07:14.580
or I'll have a healthcare emergency
01:07:14.580 --> 01:07:16.470
in order to get outta my debt.
01:07:16.470 --> 01:07:18.130
This just doesn't happen.
01:07:18.130 --> 01:07:20.713
(gentle music)
01:07:25.260 --> 01:07:27.590
- [Narrator] Debt cuts for individuals
01:07:27.590 --> 01:07:29.880
are often advisable out of compassion,
01:07:29.880 --> 01:07:32.553
but they also make sense
for the general public.
01:07:35.082 --> 01:07:39.832
(Christoph speaking in foreign language)
01:08:10.939 --> 01:08:13.522
(upbeat music)
01:08:23.430 --> 01:08:24.960
- [Narrator] We're back in Duisburg,
01:08:24.960 --> 01:08:26.649
the stronghold of debt.
01:08:26.649 --> 01:08:29.316
(upbeat music)
01:08:31.530 --> 01:08:34.560
One of those who's undergone
personal bankruptcy
01:08:34.560 --> 01:08:36.203
is Frank Wendler.
01:08:36.203 --> 01:08:38.786
(upbeat music)
01:08:40.050 --> 01:08:43.980
The pop singer and failed
gas retailer was overwhelmed
01:08:43.980 --> 01:08:45.213
by a mountain of debt.
01:08:48.840 --> 01:08:53.070
Eventually he contacted debt
counselor, Adam Carfora,
01:08:53.070 --> 01:08:55.593
who helped him file for
personal bankruptcy.
01:08:59.891 --> 01:09:04.891
(Frank and Adam chattering
in foreign language)
01:09:48.581 --> 01:09:53.581
(Frank and Adam chattering
in foreign language)
01:10:31.392 --> 01:10:36.392
(Frank and Adam chattering
in foreign language)
01:10:54.328 --> 01:10:59.050
(Frank singing in foreign language)
01:10:59.050 --> 01:11:00.330
- [Narrator] After three years,
01:11:00.330 --> 01:11:02.790
Frank Wendler will be debt free.
01:11:02.790 --> 01:11:06.213
He's found a new rewarding
job as an ambulance driver.
01:11:07.140 --> 01:11:09.690
And in his private life too
things have taken a turn
01:11:09.690 --> 01:11:10.697
for the better.
01:11:12.055 --> 01:11:16.472
(Frank speaking in foreign language)
01:11:18.167 --> 01:11:22.500
(Frank singing in foreign language)
01:11:23.367 --> 01:11:27.784
(Frank speaking in foreign language)
01:11:31.509 --> 01:11:35.842
(Frank singing in foreign language)
01:11:40.206 --> 01:11:41.039
(audience applauds)
01:11:41.039 --> 01:11:45.434
(Frank speaking in foreign language)
01:11:45.434 --> 01:11:50.184
(Christoph speaking in foreign language)
01:12:36.389 --> 01:12:39.972
(vehicles engines revving)
01:12:45.030 --> 01:12:49.860
Debt relief can also be beneficial
for insolvent companies.
01:12:49.860 --> 01:12:51.660
This can be seen here
01:12:51.660 --> 01:12:54.813
at the Bonanza Cooking
Oil factory in Argentina.
01:12:56.610 --> 01:13:00.990
In 2016, the company slid into bankruptcy,
01:13:00.990 --> 01:13:03.603
but the workers refuse to give up.
01:13:04.821 --> 01:13:09.821
(Jose and friend speaking
in foreign language)
01:13:25.890 --> 01:13:29.370
The workers formed a cooperative
and took legal action
01:13:29.370 --> 01:13:31.173
to take control of the factory.
01:13:32.820 --> 01:13:35.370
The squatters shrewdly evoked the fact
01:13:35.370 --> 01:13:36.930
that employment contracts
01:13:36.930 --> 01:13:40.133
in Argentina are usually open-ended.
01:13:42.420 --> 01:13:46.837
(Diego speaking in foreign language)
01:13:55.981 --> 01:13:57.723
(sand whistles)
01:13:57.723 --> 01:13:59.670
A new start was only possible
01:13:59.670 --> 01:14:02.073
if the factory's debts were written off.
01:14:03.090 --> 01:14:04.893
The creditors were persuaded.
01:14:05.832 --> 01:14:08.221
But the court had its doubts.
01:14:08.221 --> 01:14:10.630
(sand whistles)
01:14:10.630 --> 01:14:15.047
(Diego speaking in foreign language)
01:14:36.341 --> 01:14:37.470
With the courage of despair,
01:14:37.470 --> 01:14:41.160
the workers persevered
despite all the obstacles.
01:14:41.160 --> 01:14:43.470
In the end, only 20 were left,
01:14:43.470 --> 01:14:45.963
a sixth of the original workforce.
01:14:48.633 --> 01:14:52.966
(Jose speaking in foreign language)
01:15:10.350 --> 01:15:12.870
Impressed by the workers' tenacity,
01:15:12.870 --> 01:15:16.023
the court ruled they could be
trusted to run the factory.
01:15:18.450 --> 01:15:21.570
The suppliers were also
willing to do business
01:15:21.570 --> 01:15:22.803
with the new owners.
01:15:25.170 --> 01:15:28.740
Today, the company has 90 employees again,
01:15:28.740 --> 01:15:31.380
its edible oil is popular.
01:15:31.380 --> 01:15:33.930
Debt relief has helped everyone.
01:15:33.930 --> 01:15:36.873
The former factory squatters are content.
01:15:39.923 --> 01:15:44.340
(Diego speaking in foreign language)
01:16:03.690 --> 01:16:06.000
Like the workers from Matanza,
01:16:06.000 --> 01:16:09.153
the world needs a fresh start
with generous debt relief.
01:16:12.709 --> 01:16:15.292
(upbeat music)
01:16:18.850 --> 01:16:19.830
(steal clanking)
01:16:19.830 --> 01:16:23.190
But even if all the debts in
the world were written off,
01:16:23.190 --> 01:16:24.900
how could the endless cycle
01:16:24.900 --> 01:16:26.640
of over-indebtedness snapping
01:16:26.640 --> 01:16:29.313
shut every few years be stopped?
01:16:30.655 --> 01:16:31.575
(steel teeth thudding)
01:16:31.575 --> 01:16:32.670
(globe crying)
01:16:32.670 --> 01:16:34.440
Is it possible to imagine a world
01:16:34.440 --> 01:16:37.314
in which much less debt is incurred?
01:16:37.314 --> 01:16:40.564
(steel teeth thudding)
01:16:42.306 --> 01:16:44.889
(gentle music)
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In the African neighborhood
in Paris known as Goutte d'Or
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they're looking for an answer.
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(upbeat music)
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Aita Magassa who runs an estate
agency for homes in Africa,
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believes in a traditional solution.
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(upbeat music)
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Her clients, all French
citizens of African origin
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had problems investing in Africa.
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The banks refuse to get involved.
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(Aita speaking in foreign language)
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(upbeat music)
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Tontines are traditional
African saving schemes
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where women join together
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and pay in a fixed amount at each meeting.
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(woman speaking in foreign language)
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Each time the money
collected is distributed
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to one of the participants who
can spend it as she chooses.
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Aita Magassa applied
the century's old system
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of tontine to property purchases.
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(woman speaking in foreign language)
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(Aita speaking in foreign language)
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It states that Aita's clients
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must pay in 250 euros every month.
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In turn, 5,000 euros will be distributed
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to each of the 20 group members
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to finance a house or land in Africa.
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None of her clients has to
go into debt for a home.
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This is an unbeatable advantage
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over the usual financing system.
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(Aita speaking in foreign language)
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We learned that the principle
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of tontine also works in Europe,
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at Fily Sedibe's hairdressing Salon.
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Aita visits the resourceful lady
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for whom a bank loan was never an option
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to finance the shop.
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(Fily and Aita speaking
in foreign language)
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It's not just Fily who's
benefited from the system,
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but many other people she knows.
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(Fily and Aita speaks in foreign language)
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These two women show
how our financial system
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can become more people friendly.
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But a world without any debt
at all might be illusionary,
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perhaps it's not even desirable.
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(Christoph speaking in foreign language)
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(upbeat music)
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- [Narrator] Not everyone
benefits from our system.
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And debt has become a trap for many.
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(upbeat music)
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The world must act in everybody's interest
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because behind all debts are human beings
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and human destinies.
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♪ Cry ♪
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♪ That's part of the game ♪
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♪ We can leave the friend ♪
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♪ And when we fall too ♪
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♪ We will rise ♪
01:22:53.210 --> 01:22:57.681
♪ Tested how about now ♪
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♪ We will rise ♪
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♪ To the past we bid goodbye ♪
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♪ We turn it on a thousand times ♪