Acton Institute Powerblog

Quran, Money Lending, and Economic Growth

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Samuel Gregg, director of research at the Acton Institute, has a piece in today’s Detroit News titled, “Will Quran limit growth of Muslim nations?” The commentary addresses the economic outlook of Muslims, and Islamic nations, considering their religious position against the charging of interest. Gregg notes:

Given the Arab world’s increasing religiosity, however, one potential obstacle could significantly handicap these nations’ financial creativity and economic diversification policies: Islam’s prohibition of interest-charging.

Gregg also briefly examines how Christians settled the moral dilemma regarding interest:

Christianity once had a usury issue. Christianity began resolving this matter in the medieval period. Scholastic theologians established that, under certain conditions (such as free exchange economies), money was not simply a means of exchange, but also “capital”: that is, a productive good whose owners could legitimately charge others for its use. Not all interest-charging, the scholastics concluded, constituted usury.

Ray Nothstine Ray Nothstine is Associate Editor at the Acton Institute, and Managing Editor of Religion & Liberty. In 2005 Ray graduated with a Master of Divinity (M.Div) degree from Asbury Theological Seminary in Wilmore, Ky. He also holds a B.A. in Political Science from The University of Mississippi in Oxford. Before coming to Acton, Ray worked as a free-lance writer for several organizations, including the Institute on Religion and Democracy. He gained ministry experience in churches in Mississippi and Kentucky. After college, he also served on the staff of U.S. Congressman Gene Taylor (D-Miss) in Gulfport in 2001-02. The son of a retired Air Force pilot, Ray has also lived in Okinawa, Philadelphia, New England, Hawaii, and Egypt.

Comments

  • Prabhu

    The modern conception of economic growth began with the critique of Mercantilism, especially by the physiocrats and with the Scottish Enlightenment thinkers such as David Hume and Adam Smith, and the foundation of the discipline of modern political economy.

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