Today we bring you the next in our continuing series on “old world thinking” which is thoroughly discredited and inappropriate for the modern era. Let’s take a moment and look at the concept of usury, both past and present. It’s an old word and carries an almost universally negative connotation.

19 ” You shall not charge interest to your brother — interest on money or food or anything that is lent out at interest.
20 “To a foreigner you may charge interest, but to your brother you shall not charge interest, that the LORD your God may bless you in all to which you set your hand in the land which you are entering to possess. (Deuteronomy 23:19,20)

35 ‘ If one of your brethren becomes poor, and falls into poverty among you, then you shall help him, like a stranger or a sojourner, that he may live with you.
36 ‘Take no usury or interest from him; but fear your God, that your brother may live with you.
37 ‘You shall not lend him your money for usury, nor lend him your food at a profit. (Leviticus 25:35-37)

Far be it from me to pound on the pulpit here, so these quotes can simply be taken in historical context. We’re told that such loans, profits and associated risk are a vital part and parcel of business today. Companies take not only large amounts of venture capital to start up, but frequent short term loans to meet their regular obligations. When such cash, referred to as “greasing the wheels of commerce” suddenly becomes unavailable, the entire financial and industrial system teeters on the brink of ruin.

But what really happens in the process of money being lent at interest? In essence, one party is drawing cash out of the system while doing nothing productive in the business in question. They create nothing, they provide no materials, they perform no labor, yet they draw profit out of the process.

To think of this in simpler terms, imagine a small business machine shop which produces valves. The owner has his own property where he conducts business. He has to buy raw material, maintain and operate his machinery, pay his workers, cover overhead costs, conduct marketing and sell his product for a profit. If he saves and manages his money wisely, perhaps he can pay for all of these associated costs and the profits are his. If he has to borrow money to meet these costs, then a larger amount will need to be paid back. Makes sense, right?

Now… how many people in our global economy can take money out of the system while adding nothing fundamental to the processes of production? Or, if you prefer, how many leaches can you attach to the patient before it’s bled out and dies? If less and less people actually make things and sell things, compared to the number of people who make vast sums by essentially handing little pieces of virtual paper back and forth and suctioning money out of the process, how long would it be before the system collapsed under its own weight?

Just some food for thought on Lincoln’s birthday. Enjoy!