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Interest

From ProleWiki, the proletarian encyclopedia
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Interest is the practice of lenders forcing debtors to pay back more than they borrowed. It was historically a synonym of usury, but the Catholic Church redefined usury in the 11th century to create an exemption for Christians while accusing non-Christians of usury even if they charged lower interest rates.[1]

History

Usury did not exist in Mycenaean Greece before 1200 BCE. During and after the eighth century BCE, it arrived in Greece and Rome due to Phoenician and Assyrian traders.

The Council of Nicaea in 325 banned Christian priests from charging interest. In 1515, Pope Leo of the Medici family reversed this ban at the Lateran Council. After the Reformation, Protestants and Calvinists also justified usury as a way to gain wealth.[1]

References