The Managerial Revolution: What is Happening in the World

by James Burnham

This medieval situation is clearly reflected in the writings of the philosophers and theologians on economic subjects. No conception of money functioning as capital can be found in them. Even exacting interest on money loaned (permitting money, even in that sense, to make money)—since they realized what uses loans were ordinarily put to—was unequivocally condemned as the grave sin of usury. In designating it a sin, the philosophers were astute: they rightly grasped that the practice was subversive and that if it spread it would work to the destruction of the fabric of their society. Interestingly enough, a moral exception was sometimes made to money loaned at interest for merchant-shipping, which, as it was the one important productive use for such funds, was found to be less sinful or even virtuous.