A Look Back at Interest Rate History—Hope Things Are Looking Up
A Look Back at Interest Rate History—Hope Things Are Looking Up
Reading up on the interest rate's background can be fascinating if you're in the mood for some "light" reading.
Although I do not pretend to be an expert in the field, I have uncovered some fascinating data regarding the evolution of ideas around interest rates throughout 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 you put yourself in the shoes of someone who subscribes to the no interest ideology, you might find this information very intriguing.
People in the "olden days" really had to work 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.
Nothing in the way of laundry facilities, food stores, dishwashers, etc. In order to stay alive, people had to create or cultivate every single item by themselves. 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. It was in this way that they conceptualized interest.
Things started to shift when the Roman Empire was in power. Typically, Rome would grant interest to nations with whom 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. More time was available at that period, as one would assume.
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—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. Interest has always been a part of everyday life for those of us who are living today.
The fact remains, though, that many people lack a thorough understanding of 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. You have a lot more ground to cover in your education. The text is brief, so I've only covered the essentials. I hope you continue to enjoy exploring!
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