The Ascent of Money Season 1 Episode 2 Human Bondage

In The Ascent of Money season 1 episode 2, titled "Human Bondage," the viewers are taken on a tour through history to understand the bonds of human investment and the impact it has had on society. The episode highlights how all aspects of human life are affected by bonds including religious institutions, governments, and even the slave trade.

The episode begins by exploring the origins of bonds, which can be traced back to the Italian city-states of the Renaissance. The lucrative practice of lending money to governments was born at this time. In the feudal societies of Europe, kings and lords often borrowed from merchants to fund their wars and maintain their lifestyles. However, lending money to a king/government had its disadvantages, namely the high risk of default. To mitigate the risk, the merchants decided to spread their investments by selling small units of debt to multiple people. This practice was the origins of modern-day bonds market.

The show describes how the bonds market is an ever-evolving market and can have great societal implications. Some bonds could be involved in social good while others could be harming society. One of the most notable bonds, as described in the episode, is the borrowing of money by the French monarchy to fund wars against the British empire. The French government borrowed heavily from its citizens in the form of bonds, and since the wars were not going in the monarchy’s favour, bond holders were left with worthless pieces of paper.

The episode then pivots to explore the slave trade and how this practice was financed through bonds. Institutional investors issued bonds to finance the voyages of the slave ships. These investors were blind to the conditions in which the slaves were being transported across the Atlantic. As the demand for slaves increased, so did the number of ships carrying human cargo. The slave trade became an integral part of the financial system in the eighteenth century. In fact, it was surprisingly one of the most profitable investment choices available at the time. The show makes it evident that it was never questioned in its time, but it’s now viewed as one of the most horrific periods in human history.

The episode goes on to describe how with the world war, bonds became an essential commodity to finance the war. The role of bonds in the US Civil War shifted from being viewed as a patriotic duty to becoming a means of making money. The bond market in the US was not being used to fund the war, but instead, it was used as an investment vehicle for every citizen. Any American could buy any bond, and since the war was going in the favour of the Union, people were making money from their investment in the war. The show puts an emphasis on how these bonds helped fund the great American industrialization boom.

The final segment of the episode focuses on the rise of government bonds and their influence on the global economy. In the 1980s, the market for government bonds skyrocketed. With governments around the world being in debt and inflation on the rise, private investors saw the opportunity to lend money to the government at a much higher interest rate. The use of government bonds has allowed investors to lend money to governments, giving them the ability to fund social programs and prop up industries, which in turn is supposed to stimulate economic growth. This market has also given rise to adversarial practices like speculating against government bonds in a wager to make money.

Overall, the episode explores in-depth how the bond market has played an essential role in shaping historical events from funding wars to abolition of slavery. The show does an outstanding job of presenting a complex topic in a way that the viewer can understand. The Ascent of Money: Human Bondage is a thought-provoking episode that highlights the importance of understanding the impact of investment markets on society.