This article examines the political character of debt relations, focusing in particular on the increasingly important phenomenon of personal indebtedness. Following Michel Foucault and Gilles Deleuze, it distinguishes between three forms of ‘rationality’ that explain the various power dynamics at play beneath the formal and seemingly voluntary loan contract. Debt first exemplifies the open-ended flows of power that circulate in the networked structures of the ‘societies of control’ described by Deleuze. Far from signaling the demise of the modern disciplines analyzed by Foucault, credit relations are, on the contrary, shown to depend on some of the normalizing procedures that constituted the common core of disciplinary institutions. Arguing for a synchronic approach to historical political rationalities, this article highlights the relationship between debt and sovereignty, showing the intrication of contemporary, financialized forms of capitalist exploitation and the state’s ancient pretension to exact from its citizens an infinite debt of existence. Debt thus combines the respective effects of control, discipline and sovereignty and constitutes as such a powerful technology for the governing of individuals and populations.
Reputation and Loan Contract Terms: The Role of Principal Customers
