A balanced society

Muslims ruled the word from 7th to 13th century. Baghdad became the richest state in the world. Ruler of muslim caliphate, Harun al Rashid had established ‘House of wisdom’ to translate Greek knowledge to Arabic, where Jews, Christians and Muslims worked side by side to translate as much knowledge into native arabic as it was possible. Books printing press was established to address excessive demand of books around the world. Baghdad was the center of all new discoveries. It went on for around 600 years and muslims fell into their own pit of ‘comfort’ and ‘luxury’. We fell and since then we are fighting to get back up on our feet.

Was that society of Harun al Rashid a balanced society?

I believe, it was blessed with enormous riches. Allah (swt) had blessed the state with stability. It was a good life in Baghdad, around Baghdad uptil Spain and Subcontinent. Almost all areas encompassed by muslims were flourishing. Uptil year 1300, muslims resorted to use of gold, coin and silver dinars. Currency had an intrinsic value which made it easier for system to run in an orderly fashion. It was a prospering state.

Yes, it was a balanced declining society. Balanced, because interest based systems had not yet found their way into the state run systems. Declining, because rulers became more focused on luxury and comfort as time passed.

Not declining but balanced society?

The true balanced society existed around 100 years before. People in 800 were eating the fruits of hardships pored in by people from 610 to 660s. Rightly guided caliphs up-till Hazrat Ali (ra) had established a system of money circulation. Poor were regularly pushed with zakat and state-extended benefits. Rich were focused on boosting their businesses. From government employees to low literate people everyone was investing in his own endeavour / trade. Interest based systems of Persians and Romans were collapsing while society based on entrepreneurial spirit was progressing rapidly.

It is believed there came a time when people in Madina failed to find zakat eligible people. They resorted to getting out of city to find such people. Such systems created a balanced society.

Creation of banking system and usury

Banks were created far back in history in around 2000 BC. The concept behind banking system is to provide security to people’s finances. Banks usually work on following lines:-

1. They provide guarantee to society on behalf of people dependant on them.

2. Banks give us a receipt to make payments on their behalf.

3. Banks being richer, rather richest control all those who are dependant on them.

To understand working of banks, consider them any rich guy around us. We are in trouble, we go to this person. He takes some fee to extend us protection. While we are being protected by this person, this person extends us some more facilities. This person shows us a better boundary wall to construct around our house. After the wall, he suggests us buying a good car to feel safe. Later he offers us a better home. We gradually move from “being independent” to “heavily dependant” on this rich person.

The banks just like this person are rich guys around us. We go to them to seek protection. We buy a car, it is somewhere financed by these banks. Basic salary is a protection extended by same rich guy. Our retirement house is also a favour extended by him.

Why would a rich guy finance our protection?

Banks need to stay rich. Lending and financing basic protection to the poor has to have a fee. Poor pays above and beyond his earnings to sustain a protected life. It creates an imbalance. Rich stays richer and always charges some fee to ensure poor stays poor.

Trade vs Interest vs Us

Generally speaking, we are encouraged to save more for our future. Most around us who saved more money today, managed to earn a good retirement house. Very few who invested in trade and got successful are so few we can not rely on these examples. Rich guy knows the value of our money we are giving to him today. He will invest it today in his personal initiative and gather more ways to fixate us into coming back to him. The money we get from rich guy for a personal luxury goes back to rich guy as we buy this luxury.

Rich guy is investing, taking initiatives and getting richer each passing day. While we are guaranteed of a better future. Our today is broken for a better future. Rich guy’s today is secure, future is also secure.

Allah destroys interest and gives increase for charities. And Allah does not like every sinning disbeliever.
- Surah Baqarah verse 276

Conclusion

It is strictly forbidden to invest in interest based systems. There is no justification to support any argument against Quran. It is equally encouraged to invest in personal initiatives. Investing more in trade will earn us more in income. Investing more in riba / interest will make it difficult for us to liberate ourselves from the wrath of riches.