I've been listening to a very interesting talk on Economics in Islam...of course I can't go through all the different types of transactions that are sanctioned in Islam, and all those which are forbidden, one thing that is absolutely clear is that Riba - Usury/ Interest is prohibited. This is particularly applicable when you loan someone money and demand interest as an added value to the sum you lend.
This prohibition came about when in Mecca, money lenders used to charge interest, making it impossible for people to repay their debts thus leaving them in a state of permanent indebtedness with all the consequences that are attached to this predicament...today we call them loan sharks.
Other prohibitions are hoarding, withholding goods particularly essential ones like for example -- food in times of crisis -- thus causing scarcity and inflation, making extra profit by raising/inflating prices to the extent that people can no longer buy to fulfill their needs, charging exorbitant sums unjustifiably so, excessive spending/thriftiness, buying things that are unnecessary, or buying things that you don't use at all - this joins the idea of hoarding/ accumulating...And by the same token avarice/miserliness is also prohibited, as the flip side of thriftiness/frugality. Of course there is much more but these are the essentials...
I believe the central idea behind all those prohibitions is that of hoarding/accumulating...and this is my interpretation of it. Islam is not against wealth per se, nor is Islam a religion of strict austerity, but it is against the accumulation of wealth that does NOT CIRCULATE. In Islam the circulation of wealth is absolutely necessary for growth, giving people a fair chance to lawfully earn a living...by circulating wealth, one creates work opportunities, hence employment, hence fight the plague of poverty. There are Islamic laws for employment/labor too, derived from both some basic Koranic precepts and Hadiths of the Prophet. But I really can't go through them now here...
The Subject of Economics in Islam is a vast and fascinating one and its spiritual implications on both an individual and collective level are important and much can be learned from -- especially in today's world where savage capitalism, unemployment and poverty are the plagues/diseases that will stay with us in "the new world order"...and I am well aware that am not doing it much justice in those very brief outlines...but I thought they must nonetheless be mentioned, however imperfectly so...
I believe it all boils down to a simple spiritual principle namely that Wealth - Prosperity also referred to as Rizk or Al -Khayrat in Arabic -- meaning in this context bestowed livelihood/abundance -- is all from God, and what is from God must circulate for all to benefit i.e for the Common Good.
