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Luther, the state and misunderstanding scripture

Luther asked the questions that the 16th century Church really needed to grapple with – and because of his courage the world changed forever.  But none of this means that he didn’t make mistakes.  Did his ‘two Kingdoms theology’ – which called for separation between Church and state lead to a world where Christians started to turn a blind eye to secular evil?  Could this even have shaped a German Church which ailed to speak out against Nazism in the 1930s?