The concept of debt is ubiquitous across the globe.
Furthermore, debt has been a pillar of societies and civilizations the world over for as long as people have been trading services or using currency to buy things.
While musings on the history of debt in our society aren't necessarily irrelevant, those discussions miss the point of debt's importance to human beings.
Unfortunately however, when most people think of debt, it causes them anxiety, heartache, and fear of the future.
Debt can derail personal goals and aspiration, doom a business to failure, and put a strain on personal relationships and community well being.
While all of this is certainly true, it is also very important to remember that debt is in many ways the foundation of growth and prosperity in societies around the world.
Although if you're like many Americans you probably shop at a Walmart or Target these days, to demonstrate this truth let's use a neighborhood grocery store as an example of how debt can create positive growth and development for individuals and communities.
Let's discuss what happened to our fictional protagonist, Bill, when he moved into his neighborhood and found that the closet grocery store was about a 15-minute drive from his home.
Bill sadly realized that to cook a meal or stock a refrigerator, many families like his had to drive a considerable distance out of the way.
Even if they just wanted something simple, or needed to make a quick purchase to get dinner on the table in time, residents of Bill's neighborhood were essentially out of options.
Even worse as far as Bill was concerned, the neighborhood felt quiet and secluded as residents anonymously filed to their cars and quietly went about their shopping across town.
Bill was unsettled by this and decided that what his neighborhood needed was its own local market.
Bill however didn't have the money to open the store himself.
Undiscouraged, he spoke with property owners, suppliers, and city officials about his project.
Through his dialogue, and after crunching the numbers, Bill realized that with a reasonable loan, he could realistically expect to open a fully functional super market that could serve the many needs of his neighborhood.
So Bill went to his local bank and took out a loan to start his business.
He secured the loan with reasonable terms and opened the store soon thereafter.
Soon his business was thriving, and he could feel and see the positive change his investment had delivered.
By providing a convenient and much needed service to his neighbors, Bill began to see his neighborhood develop and the quality of life improve as well: Residents of the neighborhood could now walk or make a short drive to get their essentials at a reasonable price.
Furthermore, and more importantly for Bill, everyone got to know their neighbors, and learned that the place they lived was actually full of interesting and friendly people.
By taking on the risk of debt to finance his goals, Bill was able to provide a service to his neighbors and even strengthen community bonds in the process.
He was also able to use that money to develop a viable revenue stream for himself and his family.
By diligently paying back his money, with interest, he built his credit and earned the respect of his lenders.
When he decided a few years later that he wanted to expand his store and purchase the adjacent lot, he was able to confidently approach his bank for the money he needed.
In turn, his bank knew that they could trust him to come through on his end of the bargain and were happy to contribute to the growth of his business and his neighborhood.
As Bill's store continued to grow, his neighborhood expanded and became a better place to live.
Learning from Bill's positive example, other residents noticed missing services they thought they could provide and followed similar paths by opening their own local businesses.
It's these sort of examples that illustrate the importance debt can have in our modern world.
While it is important to never be irresponsible with loans or with the prospect of taking on debt, sometimes it can provide the means to achieve your dreams and improve the quality of life for you and your neighbors.