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what were common lending practices and their social consequences in ancient israel?

Adds the setting and its conversation across both testaments.

Deuteronomy 23:19-20

““You shall not lend on interest to your brother: interest of money, interest of food, interest of anything that is lent on interest. You may lend on interest to a foreigner; but to your brother you shall not lend on interest, that Yahweh your God may bless you in all that you put your hand to, in the land where you go in to possess it.””

This passage comes from a section of Deuteronomy where Moses delivers laws and instructions to the Israelite people as they prepare to enter the promised land. These regulations cover various aspects of daily life, aiming to establish a just and distinct society under God's covenant.

What does this passage reveal about the economic ethics of community and neighborly responsibility?

Then — the setting

In ancient Israel, especially during the period this law was codified (around the 7th-5th centuries BCE, though reflecting much older traditions), the economy was largely agrarian and communal. Wealth was primarily in land, livestock, and produce. Loans were often sought out of necessity, due to crop failure, illness, or other emergencies, rather than for investment or commercial enterprise. Charging interest (usury) to a fellow Israelite, especially a needy one, was seen as exploiting their distress and undermining the social fabric of the covenant community. The 'foreigner' (נָכְרִי, nokhri) here likely refers to non-Israelite merchants or those passing through, with whom commercial dealings might be different, reflecting common practices of the ancient Near East.

Across the Testaments

The Old Testament, through passages like Deuteronomy 23:19-20, establishes a clear ethical framework for lending within the Israelite community, prohibiting interest on loans to 'brothers' and emphasizing mutual support. The New Testament, while not explicitly re-legislating on usury, deepens the principle of generous giving and care for the needy. Jesus' teachings, particularly the parable of the Good Samaritan (Luke 10:25-37) and calls to love one's neighbor and even enemies (Matthew 5:43-48), expand the concept of 'neighbor' beyond ethnic or community boundaries, challenging distinctions that might limit compassion. While Deuteronomy permits interest from a 'foreigner,' the New Testament's broader ethic of universal love could be seen as a development that encourages generosity and just dealings with all people, regardless of their origin.

Keep thinking

Read alongside it

Exodus 22:25
Another foundational law against charging interest to the poor among one's own people.
Nehemiah 5:1-13
Describes the social crisis caused by usury among Israelites during a time of hardship and Nehemiah's intervention.
Leviticus 25:35-37
Expands on the prohibition of interest for the needy, connecting it to supporting fellow Israelites.

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