University:
California State University, Northridge
Course:
BLAW 370 | Corporate Social Responsibility
Academic year:

2022
Views:

146

Pages:

1
Author:

Cynthia Zhiqing Yang

Silvia Federici (2014)’s article is showing how debt has shifted from being a tool for economic transactions to a means of control and exploitation. She argues that debt is not just about borrowing money; it plays a larger role in shaping power dynamics and social structures. In the past, debt was sometimes a form of mutual aid, where people borrowed from each other within their communities. However, with the rise of financial institutions, debt has become a system that isolates individuals and increases economic inequality. Federici explains that modern debt from examples through student loans, mortgages, and microfinance. These are showing how these debts are forcing people into financial dependence while making them responsible for their own struggles. This shift has weakened collective resistance because debtors now face their lenders alone rather than as a united group (Federici, 2014). Federici’s argument is persuasive because she connects historical examples of debt resistance with modern financial practices. Her tone is critical, and she presents debt as a tool used by banks and governments to maintain control. She also highlights how debt affects vulnerable groups, particularly women in microfinance programs, who often find themselves trapped in cycles of borrowing and repayment with little chance of escape. By using case studies and historical references, Federici builds a strong case against the financialization of everyday life (Federici, 2014). Lastly, while Federici provides valuable insights, her argument assumes that all debt functions as a form of exploitation. Some might argue that access to credit can be beneficial when managed responsibly. However, her critique of how debt restructures social relationships and weakens solidarity is important. This connects to broader themes of capitalism, inequality, and financial control, encouraging readers to question how economic systems shape daily life (Federici, 2014). Reference Federici, S. (2014). From commoning to debt: Financialization, microcredit, and the changing architecture of capital accumulation. The South Atlantic Quarterly, 113(2), 231-244.