Monday 5 December 2016

Bava Metzia 70: Orphans, Guaranteed Investments

How should lending and borrowing be dealt with when it comes to orphans?  The rabbis debate whether or not it is permitted to lend money to orphans with ribit.  In their discussion, the rabbis consider some ways that the treatment of orphans might be similar to that of adults.  It is decided that money belonging to orphans should be invested through a trustworthy, Torah-learned man who will be follow the will of the beit din.  An acceptable investment would be in gold or another item that can only gain in value.
A new Mishna teaches us that a Jew may not care for the sheep of another as a guaranteed investment.  This particular investment offers partial profit but full responsibility for the care of the animal - far too close to interest.  This practice is permitted with non-Jews, for interest is not an issue.  A ger moshav is a Gentile who lives in Eretz Yisrael and follows the seven Noahide laws.  Such a person can lend and borrow with Jews.  S/he can also lend or borrow with a Jew but only indirectly, through a Jewish middleman.  The other Jew cannot know of this interaction.
The Gemara considers what might count as a guaranteed investment.  The rabbis also argue that collecting interest might reflect care for the poor.  How?  All money is taxed by the state, and the royalty in power will ultimately give that money back to the poor.  This argument reminds me of those who suggest that investing in gambling - will indirectly benefit those who are poor.  More gambling begets more money that the government can invest in social programs.  Except that it doesn't quite work that way. Those who gamble are also poor.  

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