Distributive Justice and the Relief of Household Debt

Journal of Political Philosophy 26 (3):327-343 (2018)
Govind Persad
University of Denver
Household debt has been widely discussed among social scientists, policy makers, and activists. Many have questioned the levels of debt households are required to take on, and have made various proposals for assisting households in debt. Yet theorists of distributive justice have left household debt underexamined. This article offers a normative examination of the distributive justice issues presented by proposals to relieve household debt or protect households from overindebtedness. I examine two goals at which debt relief proposals aim: remedying disadvantage and stabilizing expectations. I then examine strategies for relieving existing debts such as debt abolition, forgiveness, bankruptcy, and mitigation, as well as strategies that aim to prevent future indebtedness, such as public provision or financing of costly goods and credit or interest rate regulations.
Keywords Debt  Bankruptcy  Overindebtedness  Debt abolition  Credit  Interest  Distributive justice
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DOI 10.1111/jopp.12153
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