Our Beacon Forum

Re: Usury
By:Jawaid Ahmed
Date: Monday, 22 March 2010, 2:16 pm
In Response To: Re: Usury (Mohammad Rafiq)

I refer you to the great Ibn Khaldun in his book, The Muqadammah, where, from memory, he says that when Muslims took over areas of land, taxes were reduced but revenues went up. An established government has a bureaucracy that takes more and more resources for very little benefit to society; when someone new comes in, they reduce this down to bare minimum. Taxes are not needed to run this, so are reduced, giving the people more money in their pockets. This leads to happier people, who work harder, produce more and who then actually pay more taxes because of the extra wealth generated!

In his actual world history, Ibn Khaldun makes references to Islamic rulers who based their economies on commerce, trade. Money for buying goods to sell in domestic or foreign markets could be obtained, with any lender making money on the profit upon the sale of the goods, not any interest on the loan. Risk was shared equally between borrower and lender. People spent real money that they had in their pockets, not some numbers on a credit card or bank account. If they could not afford it, they went without; as long as they could feed themselves and their dependents, they were content. Now we see poor people taking out interest loans to buy 42inch plasma TVs!

I also refer you to the true meaning of Zakaat, which is purification. The early Muslims, from the Messenger onwards and for some time afterwards, collected tax revenues which were then distributed to the poor, the needy, for healthcare, housing etc. You have to do what the Quran says:-

2:219 .......And they ask you what they should give. Say, "All that is surplus." Thus God makes His messages plain for you, that you may reflect.

The State can decide if this is 10,20 or 30 percent of our income, or we will give freely, as much or as little as we can, so that we will be able to have a home, or to be looked after in our old age. We will not worry about putting money in savings accounts, ISA’s, bonds, gold reserves, stock market shares etc. our investment will be in a Quranic Just Social and Economic System; a WIN, WIN, scenario. Interest based economies will lead to ruin, it is money generating money where someone has to pay for this, someone always loses.WIN, LOSE, or eventually LOSE, LOSE.

In the ideal but realistic world, I will not need to set aside money for my future needs; these needs will be met by the State. Retirement pensions were given at the time of Caliph Omar, as were homes for the homeless. In America there is something called ‘barn raising’, where the community comes together to help build the homes people need [but not the palaces some people want]. Resources acquired by the State are utilised for and by the community.

2:177 (One consequence of this schism is their pre-occupation with rituals, with each sect leaving the Revelation aside and taking delight in its own set of dogmas they call religion. 30:320.)
Righteousness and exponential development of the ‘self’ depends not on whether you turn your faces to East or West. But righteousness is that:
One has conviction in God, And the Last Day, And the Angels, And the Book, And the prophets. And that he gives his cherished wealth to:
Family and relatives, Orphans, Widows, Those left helpless in the society,
And those whose hard-earned income fails to meet their basic needs, Those whose running businesses have stalled, The ones who have lost their jobs, Whose life has stalled for any reason, The disabled, The needy wayfarer, son of the street, the homeless, the one who travels to you for assistance, Those who ask for help, and those whose necks are burdened with any kind of bondage, oppression, crushing debts and extreme hardship of labour.
(And righteous are) those who strive to establish the institution of Salaat, (2:3. 2:53)
And help set up the Economic System of Zakaat. They are true to their pledge whenever they make one. And they remain steadfast in physical or emotional distress and in times of peril. It is they who have proven themselves to be true, and it is they who are living upright.

I live in the welfare country of England where my taxes pay for my education, healthcare, roads, security etc. I am happy when I see the benefits I receive in return for my hard earned money; despite England being far from perfect, it is much better than most places that put money ahead of people.

Messages In This Thread

Naushad P. -- Wednesday, 17 March 2010, 12:16 pm
Re: Usury
Mubashir Inayet -- Wednesday, 17 March 2010, 3:57 pm
Re: Usury
Jawaid Ahmed -- Thursday, 18 March 2010, 8:57 am
Re: Usury
Mohammad Rafiq -- Sunday, 21 March 2010, 4:13 am
Re: Usury
Jawaid Ahmed -- Monday, 22 March 2010, 2:16 pm
Re: Usury
mohammad -- Friday, 2 April 2010, 8:47 pm
Re: Usury
jawaid ahmed -- Saturday, 3 April 2010, 7:58 pm