The 60-Second Aquinas
Lesson
Usury Now and Then
(in response to a question posed by a
reader)
September 16, 1998
It’s time to close the banks and jail the bankers! Not really, but upon reading Aquinas’ ideas on usury, it might seem like that’s what he’s saying:
"Making a charge for lending money is unjust in itself, for one party sells the other something non-existent, and this obviously sets up an inequality which is contrary to justice" (ST II-II Q. 78, Art. 1).
First, Aquinas refers to usury as any charge made for lending money. Today, we consider usury to be "the lending of money at an excessive rate of interest" (Webster’s). It is rather obvious that Aquinas would consider usury as defined today a sin, and it is a crime, so the legal system agrees with him on this point.
Second, the essential elements of concern for Aquinas are the selling of "something non-existent" and the inequality created by doing such.
However, in today’s economy, we recognize interest as being paid for the use of capital. We do not view this as something non-existent, nor do we consider it to be an inequality. Without the loan of money, many could not buy houses, cars or a college education.
Usury as defined by us today, however, is unjust because it is an unfair price on a loan.
Explanation of The 60-Second Aquinas Lesson
