The main idea of this paragraph is to highlight the historical treatment of individuals with debt in the United States before the mid-1800s.
It contrasts the current situation where people in debt can receive government assistance with the past practices, such as imprisonment in debtor's prisons, forced labor, and the severe consequences that individuals faced for being unable to pay their debts.
Furthermore, the paragraph highlights other punitive measures of that era, including individuals being required to give up all their possessions except for bedding, or being forced into indentured servitude—meaning they had to work without receiving a salary until their debts were fully paid. In some cases, even the children of those who owed money were obligated to work to settle their parents' debts.