False. When credit was first conceived there was no interest. Interest was created by the money changers. The way economies grew was through supply and demand. This is where prices for goods and services were adjusted and jobs were created. To support the government, tariffs were created on goods sold outside the country or imported into the country. Interest on loans and credit are the tools used by central banks to profit when they do nothing to generate an income.

There are other reasons for it to work.

We live in a debt and discharge society, almost all money is debt, remember all money is an IOU, (i promise to pay the bearer on demand), this was the inside joke in the film Dumb and Dumber, because the fact is, any one can create money, or else the banks would be a cartel, but you would have to get the public to accept it as legal tender and trust in using it. Money was backed by gold and silver, but then the moneylenders or goldsmiths, learned that more often than not the public didn't want to carry gold around on them, and so they started to write IOU's. It was Alfred Russell Wallace, (the co-founder of the theory of evolution), that suggested money be used as a commodity in of itself. The private banks print money out of thin air, on loan to the public banks, but of course the more that is printed the less money costs, it loses it's value, it's one big scam. When you get a loan, all you are doing is agreeing to pay for what you want to pay for, as there is no monetary value in a loan agreement, as it's all IOU's. Look up the banking system the biggest scam in history. If everyone in the US realised this, the whole system would fall tomorrow. https://www.theguardian.com/commentisfree/2014/mar/18/truth-money-iou-bank-of-england-austerity https://www.youtube.com/watch?v=po7uIqKO1r0