A Review of Interest Rate History—Hope for a Better Future
Reading up on the interest rate's background can be fascinating if you're in the mood for some "light" reading.
I don't pretend to be an expert by any stretch of the imagination, but I did find some fascinating data on how people's perspectives on interest rates have evolved through the years.
A very extensive history actually exists for the interest rate. Along with the ancient Greeks and before.
During that era and in those societies, the idea of interest was completely foreign and even demonic.
Some kings really had their subjects beheaded for charging interest.
When put in context with the reasoning behind the no interest concept, this becomes a really intriguing piece of information.
People in the "olden days" really had to struggle for what they had. There was a lot more difficulty in life than there is now. They lacked the contemporary conveniences that we take for granted nowadays.
Not even a grocery shop, washer/dryer, dishwasher, etc. They had to create or cultivate what they required for survival independently. Just getting by each day was a struggle.
As a result, you can understand their contempt for the concept of making money while doing absolutely nothing. Interest was conceptualized in this way.
Things started to shift when the Roman Empire was in power. Rome would occasionally grant interest, but only from nations with which they had strained relations.
In addition, they detail the precise interest rates that are permissible. Their stance on this matter was crystal obvious.
The Roman Catholic Church became interested in the issue following the empire's disintegration. It reverted to the earlier, no-interest principles.
The clergy were first exempt from the "no interest" policy, which initially only extended to the general public. But in due time, even members of the clergy were subject to the no-interest regulation.
Until the industrial revolution, this anti-interest theory was in force. There was, unsurprisingly, greater time at that period.
A change in attitude toward the idea that one must toil for their money and an improvement in the availability of time and energy were both brought about by the introduction of new machinery and tools.
The idea of earning money from interest—essentially, money without work—wasn't as strange or disgusting as it had been in prior ages, though that thinking was still quite powerful.
We have a much better grasp of interest now. As modern humans, we have never known a period when curiosity wasn't ubiquitous.
However, many people still have many questions when it comes to interest. You can keep one step ahead of the competition in the financial arena by learning how everything fits together.
If you have found this interest rate history intriguing, I hope you will continue reading. A lot more information is available to you. I have simply covered the essentials in this little post. Embark on even more exciting adventures!
