It’s worth noting that Abraham’s “work” is not any good work but explicitly carrying out his faith that he will have physical decendents (Gen 15:1-6, cf Heb 11:17-19).
Rahab, too, acted on her belief that God would give Canaan to Israel (Josh 2:8-13).
So the operative question becomes, to me, what are we believing that we’re supposed to live out?

Luther OVER-reacted to the Catholic church. Therefore, this epistle did not fit his over-thought theology. There is always a problem when we try to fit the Bible into our theology instead of our theology flowing from the Bible.
James’ point is that if you have faith, it will be made evident by works. If you are not doing works that are synonymous with following Christ (i.e. simple obedience) then your faith is dead. Which, most simply, means that your faith will not save you.
We all know that this subject hangs with baptism. The simple fact is that Faith is demanded of us, just like baptism. We are not saved because of either. We are saved because of Christ’s sacrifice. The New Testament teaches that salvation is dependent on how one responds to that sacrifice. How else do you respond to that sacrifice besides faith and obedience.
Luther did some great things, but he went too far in the other direction!

I don’t understand why this is so complicated. James’ intent throughout these verses (both previous and these) is clear: “faith” has not meaning if it does not result in changed behavior. He is making a distinction between an intellectual understanding of something and -having faith- in that thing. Many people -understand- the theology of being a Christian but have no actual -faith-. This is apparent because their behavior is completely unimpacted by this understanding that they have.
He is not wading into the “faith” vs. “works” debate as we understand it in hind sight. He is drawing a distinction between those who -claim faith- but really only have understanding and those who -have faith- which results in new, Jesus-like behavior.
He is -defining- what real faith is, not creating some distinction between faith-based salvation and works-based salvation.
Do people really, genuinely not get this?

Dr. McKnight,
So how does this relate to sola fide? Often times my Muslim friend uses these passages of the Bible to attack the Protestant stance (and my stance) of “Salvation by faith alone.” Hmmm…I’ve read John Piper’s take on it…but it was all very complicated and full of theological technicalities. How exactly are Sola Fide Christians supposed to deal with this obvious tension in the New Testament?
I mean, how does this passage manage with Romans 1:17 “For in the gospel a righteousness from God is revealed, a righteousness that is by faith from first to last, just as it is written: “The righteous will live by faith.” and Romans 10: 9-10 “That if you confess with your mouth, “Jesus is Lord,” and believe in your heart that God raised him from the dead, you will be saved. For it is with your heart that you believe and are justified, and it is with your mouth that you confess and are saved.”

If nothing else, James makes clear that we must not separate works and faith. Conceptual distinction, sure. Practical separation? No.
Yet the age old argument rages on, whether the gospel “Tastes great” or it’s “Less filling.”
Good remarks Scott and others!
George, I think the key is seeing the two, faith and works, as part and parcel of the righteousness that is from God. Why would righteousness NOT include works? Both are the gift of God worked in us by the holy spirit.

I have come to believe that the reason some people really, in fact, do not get this is because they do not have covenant context in mind — like Scot is talking about over in his post on Luke.
There is the “saving” faith that brings us into covenant community relationship with God and those who name Jesus as Lord. This faith is in the work that Jesus did on the cross.
There is work, however, that WE must do as faithful covenant keeping partners. This is not a faith that saves — it is the faith that perseveres and is evidence of sanctification.
This would, of course, be another reason some don’t like this passage, or the epistle of James in general — it bring up the issues of the sheep and goats … those whose faith “worked” and those whose “faith” has no appropriate “working out” of their salvation with fear and trembling.

And of course Paul wonderfully adds love to all of this fuss about what is most important in 1 Corinthians 13. Yes, indeed.
The Gospel is a magnificent tapestry.