It absolutely has been set up this way, after having been set up in the opposite way for quite a while.
> Historically, some cultures (e.g., Christianity in much of Medieval Europe, and Islam in many parts of the world today) have regarded charging any interest for loans as sinful.
> The pivotal change in the English-speaking world seems to have come with lawful rights to charge interest on lent money,particularly the 1545 Act, "An Act Against Usurie" (37 H. viii 9) of King Henry VIII of England.
Usury and debtor's prisons, like slavery, died out not because they were morally reprehensible but because they gave way to more efficient means of achieving growth. Don't kid yourself.
> Usury and debtor's prisons, like slavery, died out not because they were morally reprehensible but because they gave way to more efficient means of achieving growth. Don't kid yourself.
The word “usury” means either the practice of making unethical loans, or simply charging any interest for loans. It should be clear that neither form of usury has died out — even if you consider regular loans ethical, surely you’ve heard of “payday loans”?
Neither has slavery but both ills are greatly diminished from their peak. It is now more profitable to do other things (lend at reasonable rates, pay wages) due to a variety of factors (mostly technology).
You objected to the assertion that society has been set up to reward ownership of capital. You somehow fail to acknowledge that when lending at interest is disallowed, owning capital does not automatically lead to accumulating more capital — a process which you called “a law of nature”, and which is clearly anything but.
The question is not whether reasonable interest rates are more profitable than others, but rather — whether society would be better off if lending at interest was disallowed altogether. I submit that it would.
It absolutely has been set up this way, after having been set up in the opposite way for quite a while.
> Historically, some cultures (e.g., Christianity in much of Medieval Europe, and Islam in many parts of the world today) have regarded charging any interest for loans as sinful.
> The pivotal change in the English-speaking world seems to have come with lawful rights to charge interest on lent money,particularly the 1545 Act, "An Act Against Usurie" (37 H. viii 9) of King Henry VIII of England.
http://en.wikipedia.org/wiki/Usury