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A Just Economic System

Understanding Islam with Dr. Chris Hewer - Season 3 Episode 4 On several occasions in the Qur'an, Muslims are commanded to “establish the prayer and pay the zakat” [Q. 2:277]. From this we can see that Islam places a double emphasis on the vertical pole of prayer and the horizontal pole of bringing one’s economic life under divine guidance; but what does it mean: “to pay the zakat”? As a starting point, we can say that zakat is about the purification of wealth by making money circulate in due proportion from those who have more than is necessary to cover their basic responsibilities to those who lack sufficient money to meet their needs. Every human being has the high dignity of being the khalifa and the abd of God: the regent and the loving servant. To be the regent means to be the steward of the good things of God. This means that whatever it appears that we own is not ours to do with as we please but rather, human beings are the custodians of goods that ultimately belong to God and are to be used according to divine guidance. To be the servant means to obey the commands of God. All that we possess is to be used according to God’s guidance for the benefit of humankind and in the service of God. Just as God has no favourites, all are sustained and guided, so the regent of God must practise sadaqa, which we can translate as “bearing one another’s burdens.” An economic system Muslims will always be concerned about money; how it is made, saved and spent. Money must be made in ways permitted by God. If something is forbidden (haram) for Muslims to do, then Muslims cannot profit by it. Alcohol is forbidden for Muslims to consume, therefore it is forbidden to profit from the sale of it or to invest money in its manufacture or distribution. Our money is a moral extension of ourselves. Being in business for profit is good as it creates employment, provides a service and provides more money for us to use wisely according to God’s guidance. But trade must operate on principles of fairness and justice. It is forbidden for a Muslim to withhold goods so that there is a shortage and thus an unjust price can be charged. Similarly a buyer must be prepared to pay a fair price for goods and not try to force the seller to let the goods go for an unjust price. Muhammad said that workers must not be exploited and thus should be paid their wages before the sweat dries on their foreheads. When it comes to choosing a profession, Muslims are encouraged to look for something that builds up society and serves the common good. A profession or business that leads to corruption on the earth would be forbidden by the Islamic code of living. It is a reality of human societies that some people have more money than others and that those with less will sometimes need help from those who have a surplus. If someone needs to borrow money, then those who have surplus are encouraged to lend it to help them out but not to seek to make money out of the other person’s need. Interest-free loans are a way of helping those in need without exploiting them. The borrower is obliged to pay back the loan in full on the agreed date but the lender should not seek to profit from the transaction. In this way, human society becomes a mutual undertaking rather than a system of exploitation by those who have financial power. This system requires a stable currency in which money is dependent on tangible assets, such as a gold standard. Scholars debate whether, in a society in which money is divorced from assets and therefore subject to inflation, the borrower should repay the numerical sum or return to the lender the equivalent amount based on the purchasing power of money at the time of repayment. Click Here to subscribe & keep updated with all our latest videos: https://www.youtube.com/ahlulbaytplus... Donate & Support Ahlulbayt TV today: https://www.justgiving.com/ahlulbaytf... Follow Ahlulbayt TV on social media: Facebook -   / ahlulbayt   Twitter -   / ahlulbayttv   Instagram -   / ahlulbayttv   Website: http://www.ahlulbayt.co.uk/ Ahlulbayt: Documentaries -    / ahlulbayttvdocs   Ahlulbayt: Reborn -    / ahlulbayttvreborn   Ahlulbayt: Health in Islam -    / ahlulbaythealthinislam   Children's ABTV (CABTV) -    / childrensabtv   Ahlulbayt: General Q&A -    / ahlulbayttvqanda