A house or a flock can produce new value by use

Reference no: EM131305596

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. What did Aristotle mean in arguing that money is "barren"? Why would money being barren mean that lenders should not charge interest on loans? Do you agree with Aristotle's reasoning? Briefly explain

Reference no: EM131305596

Questions Cloud

How is it related to federal reserves and treasurys actions : What actions did the Federal Reserve and Treasury take in dealing with the financial crisis? What is the moral hazard problem? How is it related to the Federal Reserve's and Treasury's actions?

Define faying surface and friction-type joint : Define a shear joint? Define an axial shear joint? Define faying surface? Define friction-type joint? Define bearing-type joint? Draw a graph illustrating the way a shear joint fails? Is bolt preload important in a shear joint? If so, why? If no..

Difference between a pretension and a slip-critical joint : What is the difference between a pretension and a slip-critical joint? Under what conditions is it acceptable to only snug-tighten the bolts in a joint?

Discuss key points about the function : Discuss key points about the function,Describe how employment works in coordination with the other functions of human resources,Do you think it is an important area, why or why not?,If not, which area do you think is more important and why?

A house or a flock can produce new value by use : Why would money being barren mean that lenders should not charge interest on loans? Do you agree with Aristotle's reasoning? Briefly explain.

Discuss briefly how the above outlined security mechanisms : Discuss briefly how the above outlined security mechanisms would fail, and the reasons forthis failure. Outline an alternative security architecture that could continue to achieve thespecified security goal notwithstanding this new scenario.

What about the design made the team successful : Different levels of rewards should be used to recognize different accomplishments and degrees of accomplishment.Communication of the award to the team and/or individuals should be a prepared event and/or communicated clearly.

Define the time value of money and present value : Define the Time value of money, Present value and Discounting- How is the price of a financial asset related to the payments to be received from owning it?

What are main reasons that lenders charge interest on loans : What are the main reasons that lenders charge interest on loans?- Give an example of a financial transaction that requires a payment in the future.

User Account

All Pages