Question

Norman Jones, an economic historian at the University of Utah, has described the view of the ancient Greek philosopher Aristotle on interest: Aristotle defined money as a good that was consumed by use. Unlike houses and fields, which are not destroyed by use, money must be spent to be used. Therefore, as we cannot rent food, so we cannot rent money. Moreover, money does not reproduce. A house or a flock can produce new value by use, so it is not unreasonable to ask for a return on their use. Money, being barren, should not, therefore, be expected to produce excess value. Thus, interest is unnatural.

Source: Norman Jones, "Usury," EH.Net Encyclopedia, edited by Robert Whaples, February 10, 2008, http://eh.net/encyclopedia/article/jones.usury.

What did Aristotle mean in arguing that money is "barren"?

A.Money cannot produce other money; it does not have the capacity to reproduce itself like crops or livestock.

B.Money cannot produce other money because the technology to do so did not exist in Aristotle's time.

C.Money produces wealth but it cannot produce happiness like a family.

D.Money produces other money; however, it has no use value.

Why would money being barren mean that lenders should not charge interest on loans?

A.As borrowers were often unable to repay a loan, money was viewed by lenders as barren, or having no value.

B.Money was to be used in exchange and not increase (reproduce) by charging interest.

C.Money has no use value; therefore, lenders should not charge interest on loans and instead use a barter system.

D.Aristotle was incorrect as money has always been fruitful because it can reproduce by charging interest on loans.

Is charging interest generally an accepted practice in today's economy?

A.No, interest today is viewed as taking advantage of those individuals that want to purchase the extra luxuries of life.

B.Yes, interest today is viewed as the cost of credit.

C.Yes, interest today is viewed as an easy way to increase (reproduce) money.

Answer 1

1)A.Money cannot produce other money; it does not have the capacity to reproduce itself like crops or livestock.
It is mentioned in the case about that money is Barren and cannot produce itself like crop or livestock.

B).Money was to be used in exchange and not increase (reproduce) by charging interest.
Money was used as a medium to obtain goods of necessity and to sustain life but not as a way to earn a living through interest rate.

C).Yes, interest today is viewed as an easy way to increase (reproduce) money.
Today money is invested in financial market so as to gain profit through interest rate.