Comment: Usury

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In reply to comment: I beg to differ (see in situ)


Hi Michael, All,

I found a post on the DailyReckoning forum that discusses the "Money is Debt" video, and focuses on usury (charging interest on loans). The thread can be found at

The first post in the thread seems to argue that usury may increase efficiency in an economy, perhaps through increases in complexity (or perhaps by stimulating competition/innovation). Although this may be true, do you think these ends (i.e. better efficiency) justify the means (i.e. the mathematical theory that when usury is part of a financial system, some borrowers must default on their loans)? Thanks for any insights.