Surah 1-2 - YasSarNal QuR'aN

Al-Baqarah (The Cow) | THE EVIL OF USURYthe one who always gains. The majority of capital today is under the real control of afew thousand people; while landlords, industrialists, farmers and traders whoborrow from the banks, as well as workers and ordinary consumers, are no morethan labourers working for the benefit of those in possession and control of capital.That is not all that is wrong with a usury-based economy. The relationshipbetween capitalists on the one hand, and those working in commerce and industryon the other, is based on mistrust, strife and resentment. Moneylenders try to makemaximum gains by lending their money, and therefore favour a squeeze on themoney supply to cause a rise in the cost of borrowing. This eventually leads td aslowdown in the economy, a rise in unemployment, and a fall in /the purchasingpower of the individual. This creates a fall in industrial loans which, in turn, forcesthe moneylenders to reduce the cost of borrowing, and a new cycle of growth andprosperity begins, only to lead to another recession and more misery for borrowersand consumers. It is this vicious circle of boom and bust that brings about the regularinternational economic crises.In such an economy, every consumer pays part of the price of goods to themoneylenders albeit indirectly. Industrialists and traders take the extra cost ofborrowing out of consumers’ pockets by raising the prices of goods and services,thus spreading the burden over the widest possible area. Government borrowing tofinance public projects is also met by ever-rising taxes imposed on the earningsections of the population, spreading the cost again over large numbers of people.This led to the rise of colonialism, and remains the root cause of war and conflict inthe world today.When considering the Islamic attitude to usury, we must bear in mind a numberof essential facts.The teachings and ethics of Islam, as we have seen, are in total conflict with ausurious economy. All the rulings, issued by the official ‘clergy’ in Muslim countries,and the arguments advanced to show that usury may be accommodated into theIslamic system, are pure humbug aimed at deceiving the public.The usury system is a curse on all humanity, not only ethically and religiously, butalso economically and practically. It is a system that creates unhappiness andrestricts the growth of harmony and stability in society, despite its deceptive promiseof prosperity.Moral and practical considerations are inextricably linked. In all his actions, man isgoverned by the terms of God’s covenant; he is here with a mission and aresponsibility and will have to account for his actions in the hereafter. An Islamiceconomic system must be built on moral and ethical principles. Such principles arenot a merely desirable addition that can be done without in people’s life.385