A Review of Interest Rate History—Hope for a Better Future
A Review of Interest Rate History—Hope for a Better Future
If you are in the mood for some "light" reading, digging into the interest rate's past might actually be rather intriguing.
I am in no way a specialist on the subject of interest rates, but I have come across some fascinating data on how people's perspectives on the matter have evolved over the years.
A very extensive history actually exists for the interest rate. During the time of the Greeks and earlier.
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.
You know, people in the "olden days" really strove for all that they owned. Back then, things were far more difficult than they are 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.
You can probably guess how they feel about the prospect of getting paid to do absolutely nothing. It was in this way that they conceptualized interest.
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.
Following the disintegration of the Roman Empire, the Church became entangled in the controversy. It returned to the zero-interest principles of yesteryear.
However, at initially, only the general public, and not the clergy, were subject to the rule of no interest. But in due time, even members of the clergy were subject to the no-interest regulation.
The industrial revolution was the last straw that caused this anti-interest philosophy to crumble. There was, unsurprisingly, greater time at that period.
You have to work a bit harder for your money, but with the new machinery and tools, life was a little easier, and you had a little more free time.
The idea of earning money from interest—essentially, money without work—was not as strange or disgusting as it had been in past ages, though that worldview was still quite powerful.
Interest is now much easier to grasp. Those of us who are still here now do not remember a time when curiosity was not universal.
The fact remains, though, that many people lack a thorough understanding of interest. If you want to remain ahead in the financial arena, you need to learn how everything fits together.
If you have found this interest rate history intriguing, I hope you will continue reading. You have a lot more ground to cover in your education. The text is brief, therefore I have simply covered the essentials. Continue to enjoy your explorations!
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