Final answer:
Debt peonage is a form of involuntary servitude where a worker is bound to their employer until they pay off their debt. This system made it nearly impossible for workers to free themselves from their debts due to exploitative practices such as unfair interest rates and forced purchases from company stores. Similar systems were used in penal labor, such as British convicts being transported to Australia.
Step-by-step explanation:
Debt peonage is a system where workers are bound in servitude until their debts are paid. This form of labor control was prevalent in the late nineteenth century across various parts of the world, including parts of the United States, Japan, and South America. Workers often found themselves in a cycle of debt that was nearly impossible to escape due to high interest rates and the cost of living placed on their accounts by employers or landlords.
In agriculture, sharecroppers and tenant farmers had to purchase goods on credit, and after the harvest, their earnings often did not cover the debts, which resulted in a perpetual cycle of debt. Employers sometimes issued scrip, which could only be used at company-owned stores, further entrenching workers in debt. In other instances, such as Japanese brothels, the cost of accommodation and necessities was added to the workers' debt, ensuring they remained bound to their employers.
Penal labor, another form of forced labor, was used as punishment for convicted criminals. For example, British convicts were transported to Australia where they had to complete years of labor before gaining freedom. This system shared similarities with debt peonage as it involved a form of involuntary servitude.