As for the lending/borrowing business, it's the modern variant of slavery, after all people need motivation to work. Getting your house taken if you stop being productive can make wonders on an employee.
Actually, I think it forces people to take the safest path, out of fear, instead of really giving people the freedom to explore themselves and their interests. A lot of people find themselves stuck in jobs they hate, or at the very least that they're bored out of their minds with and don't really care about at all, and don't correspond to their interests or who they really are as people, because that's what pays, then coming home and soothing with Netflix, binge eating, social media scrolling, celebrity gossip, booze, weed, porn, you name it - doing these things more out of compulsion than enjoyment, just as a release from spending all day working on things that have no connection to your purpose or identity, absolutely nothing to do with anything that matters to you or makes you think or feel anything. The system of coercion keeps people trapped in boring, numb, depressing, meaningless, blank and empty lives, just so the people at the top can have more wealth than most people are even capable of comprehending. It's like in a video game, if one side is too powerful, the game becomes unbalanced, and broken, and the game is not only not enjoyable to play, but there's no point playing it. Except in capitalism, you're forced to. I think that's the REAL motivation killer - being forced to work on things you don't care about and don't mean anything to you, as well as working and knowing you're not going to get anywhere anyway. It's like, no wonder a lot of people only work just enough to get paid, why would they do more when they don't like what they're doing, and don't like that they're forced to do it? The system of coercion doesn't do wonders, it only motivates you to do the bare minimum to keep getting paid and not get fired - in fact I would say it inspires crime and corruption, out of desperation to escape it.
And if we're going to use fear to motivate people, how is it really
any different than holding a pistol to someone's head? In America we like to say, "you're free". Sure, "you're free" to not be productive, but you're "free" in the same way that "you're free" to not hand your money over to a mugger pointing a loaded gun at you. Technically sure, you're free, except then you get shot after that, meaning your "freedom" is only in theory, and essentially meaningless.
I guess our system is better than that of dictatorships, but at the same time, it still uses fear and threats to coerce people, so it's still on the level of "suck". It's a choice between "bad" and "less bad, but still pretty bad". I feel like any system that relies on coercion, isn't much of a civilization - it's still primitive, still survival of the fittest, still savagery. The fact that we have all this technology but are still stuck in Darwinian competition, really disappoints me and disillusions me with the human race, and makes me think we're not really that smart or advanced. I thought we had the capacity to do, and to be, better than this. I thought doing and being better than this, was the whole point of civilization/society, at all. It makes me not want to work for this world, because it's dumb, like being forced into a religion you don't believe in whatsoever. It makes me not just mad, but genuinely sad that this is how we are.
I think forcing people to be productive or else be homeless, isn't a system worthy of respect, support, or defense. And it ultimately stifles motivation, not inspires it, by forcing people to take the safest path in life, instead of looking for and finding what truly inspires them to work on - and in doing so keeps people trapped in lesser versions of themselves, and unfulfilled lives. I just think, imagine how things could be if we weren't motivated by fear, if we used technology to set ourselves free to work on what we wanted to, if we could work towards self-actualization instead of living in fear - things might actually start to get better, instead of worse and worse with every passing year.