Free grace theology proponents say that the dead faith James refers to is not a false faith but, while not ideal, it is still a saving faith. A close look at James 2:14 through 2:26 makes it clear that James is speaking of a professed faith, but not a genuine faith. He is distinguishing between a professed faith and an actual possessed faith. A person can make all kinds of claims that are not true. One can claim to have things he does not have or claim to be something he is not. It is not unusual and happens on a daily basis. In James 2:14 we see that James is talking about someone who claims to have faith. James 2:14 What good is it, my brothers, if a man claims to have faith but has no deeds? Can such faith save him? This would be like saying: What good is it, my brothers, if a man claims to be a doctor but has no training? Can such a doctor heal people? The answer is obviously no. A claim to be a doctor when a person has no training is a false claim. It is a worthless dead claim. Therefore, James was warning that a true living faith would result in a changed person with a changed agenda that naturally produces deeds and works. These deeds are a result of grace, regeneration and a saving faith and have no merit for justification. Good works are the fruit of a saving faith not the root or cause of salvation. James goes on to say: James 2:17 In the same way, faith by itself, if it is not accompanied by action, is dead. James is quite simply saying that a person who does not show any signs of the fruit of the spirit does not have a saving faith. He may have a belief or mental assent, but he does not show the signs of someone who has placed their hope and trust in the finished work of Jesus Christ. James then compares such mental assent belief with that of demons in verse 19. James gives examples of saving faith being backed up by action in verses 20-25. James closes Chapter two by equating the body without the spirit to faith without deeds. He says both of them are dead. Dead means a false, worthless, not genuine faith that does not save.
James 2:14-26: 14What good is it, my brothers, if a man claims to have faith but has no deeds? Can such faith save him? 15Suppose a brother or sister is without clothes and daily food. 16If one of you says to him, “Go, I wish you well; keep warm and well fed,” but does nothing about his physical needs, what good is it? 17In the same way, faith by itself, if it is not accompanied by action, is dead.
18But someone will say, “You have faith; I have deeds.”
Show me your faith without deeds, and I will show you my faith by what I do. 19You believe that there is one God. Good! Even the demons believe that—and shudder.
20You foolish man, do you want evidence that faith without deeds is useless? 21Was not our ancestor Abraham considered righteous for what he did when he offered his son Isaac on the altar? 22You see that his faith and his actions were working together, and his faith was made complete by what he did. 23And the scripture was fulfilled that says, “Abraham believed God, and it was credited to him as righteousness,” and he was called God’s friend. 24You see that a person is justified by what he does and not by faith alone.25In the same way, was not even Rahab the prostitute considered righteous for what she did when she gave lodging to the spies and sent them off in a different direction? 26As the body without the spirit is dead, so faith without deeds is dead.